Manappuram Finance Q4 Review - Gold Loan Book Moderates; MFI Performance Healthy: Motilal Oswal

A gold ring sits atop a weighing scale. (Photographer: Anindito Mukherjee/Bloomberg).

Manappuram Finance Q4 Review - Gold Loan Book Moderates; MFI Performance Healthy: Motilal Oswal

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Motilal Oswal Report

Manappuram Finance Ltd.'s consolidated profit after tax grew 18% YoY to Rs 4.7 billion (5% miss) in Q4 FY21.

While operating profit was largely in line, higher provisions (from the micro finance institution segment) led to the profit after tax miss.

Gold prices in Q4 FY21 were down 12% QoQ. Two other factors led to the decline in the loan book:

  1. auction of Rs 4 billion worth of gold loans, and
  2. 4% decline in tonnage to 65 million tonne.

However, these were offset by an increase in loan-to-value to 71% from 63%.

All the other segments delivered sequential loan book growth – the most prominent being the MFI segment with 11% growth.

Click on the attachment to read the full report:

Motilal Oswal Manappuram Q4FY21 Result Update.pdf

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