Manappuram Finance Q4 Review - MFI Asset Quality Stable; Gold Loan Growth Slows Down: IDBI Capital
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IDBI Capital Report
Manappuram Finance Ltd.’s gold portfolio declined 6% QoQ due to higher auctions (Rs 4 billion) as well as decline in gold prices (down 12% QoQ).
This resulted into slowdown in assets under management growth to 8% YoY versus 15% YoY (Q3 FY21).
However, non-gold portfolio grew by 10% QoQ led by 12% QoQ growth in micro finance institution (22% share of AUM).
MFI reported stable asset quality as gross non-performing asset stood at 2.5% versus 2.6% QoQ; however profit after tax declined by 82% QoQ due to higher provisions (up 96% QoQ).
We need to watch out for second wave impact on MFI portfolio.
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