Manappuram Finance Q4 Review - Business Performance, Quality Takes A Hit: Prabhudas Lilladher
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Prabhudas Lilladher Report
Manappuram Finance Ltd.'s Q4 FY21 proved to be a mixed performance.
While gold assets under managements 12% YoY growth stood in-line with guidance, auctions surge and tonnage decline (down 4.3%QoQ) stood stark for Q4 FY21.
Short tenure loan policy (three-month) implied upfront loss recognition on account of gold price correction that reflected in tonnage shrinkage.
However, gold loan borrowers comprising of small business entrepreneurs have been facing the brunt of the second wave.
Micro finance institution non performing assets stood steady QoQ at 2.5%, however, April-May 2021 weak collections (7-8% dip from 101%: March 2021) led by second wave should dampen the asset quality prospects for the current fiscal.
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