Manappuram Finance Q1 Review - Gold AUM Grew Sequentially; Net Interest Margins Improved: IDBI Capital
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IDBI Capital Report
Manappuram Finance Ltd.’s gold loan portfolio grew by 1.6% QoQ (up 24% YoY) as competition eases from banks. Overall assets under management growth improved to 24% YoY versus 11% YoY (FY22) on low base.
Micro finance institution reported deterioration in asset quality as gross non-performing asset stood at 7.7% versus 3.5% QoQ; also reported loss (Rs 83 million).
We need to watch out for recovery in MFI portfolio in FY23. Net interest income grew by 6.5% QoQ led by improvement in NIMs; pre-provision operating profit grew by 1% YoY led by lower other income (down 20% QoQ).
Manappuram Finance's profit after tax grew by 8% QoQ led by lower provisions (down 15% QoQ). Management maintained guidance for gold loan growth at 10% for FY23.
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