Manappuram Finance posted an operationally weak Q3. The asset under management (AUM) growth was muted this quarter and the MFI asset quality also deteriorated.
AUM growth in Q3 was up 0.7 percent year on year but was 6.8 percent quarter on quarter. Gross non-performing assets in gold loans were up 0.7 percent compared to 1.2 percent QoQ. GNPA in MFI book was 3.8 percent versus 2.81 percent QoQ. Operating profit was down 12.5 percent YoY, at Rs 305.7 crore. Net interest margins (NIMs) for Q3FY18 came in at 16.8 percent compared to 17.03 percent QoQ.
Kapil Krishan, Chief Financial Officer, Manappuram Finance said the year on year AUM number looks muted because the base was higher for them. They did not see impact of monetization in Q3 and Q4 last fiscal, he said.
AUM sequential growth is double that of the market and after three quarters of decline post demonetisation, Q2 was flat but growth is back on track, he said.
The company on track to achieve 10-15% growth in gold loan and 20% overall, said Krishan.
Going forward, the NPA provisions will decline because all NPAs are coming from disbursement that were pre-demonetisation, he said. All disbursements post January have been very good and they have collected over 99 percent.
The company is looking at fintech investment or strategic buyouts but there is nothing concrete yet, said Krishan.