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Manappuram Finance clocks Rs 191 crore net loss in Q4, NII declines 6.7 pc

IANS May 9, 2025 444 views

Manappuram Finance experienced a challenging quarter with a significant net loss of Rs 191.17 crore, primarily due to increased impairment costs. The company's Net Interest Income declined by 6.7% year-on-year, indicating financial pressures. Despite these challenges, Manappuram saw an 18.7% growth in Assets Under Management, driven by higher gold loan demand. The firm remains resilient, declaring an interim dividend and maintaining a market capitalization of around Rs 19,300 crore.

"Higher impairment costs significantly impacted our quarterly performance" - Manappuram Finance Management"
Mumbai, May 9: Manappuram Finance on Friday reported a consolidated net loss of Rs 191.17 crore for the quarter ending March 31, compared to a profit of Rs 561.53 crore in the same period last fiscal.

Key Points

1

Q4 net loss of Rs 191.17 crore vs previous year's profit

2

Net Interest Income declines 6.7% year-on-year

3

Assets Under Management grows 18.7% to Rs 42,070 crore

4

Interim dividend of Rs 0.50 per equity share declared

The loss was primarily due to a significant increase in impairment on financial instruments, which surged to Rs 919.2 crore -- compared to Rs 187.8 crore in the same quarter last financial year and Rs 554.6 crore in the previous quarter.

Net Interest Income (NII) also fell by 6.7 per cent year-on-year (YoY) in the fourth quarter of FY25, dropping to Rs 1,464.3 crore from Rs 1,569 crore in the corresponding quarter of the previous fiscal.

Total expenses in Q4 were also increased to Rs 2,599.13 crore, up from Rs 1,616.69 crore in the year-ago period, according to its stock exchange filing.

For the fiscal year 2024–25 (FY25), Manappuram Finance reported a consolidated net profit of Rs 1,216.15 crore, a decrease from Rs 2,188.67 crore in the previous fiscal.

Operating revenue for the year stood at Rs 10,040.76 crore, up from Rs 8,848.01 crore in FY24.

The company’s Assets Under Management (AUM) grew by 18.7 per cent year-on-year to Rs 42,070 crore.

The increase in AUM was driven by higher demand for gold loans, which benefited from a rise in gold prices during the year.

Total income in Q4 was Rs 2,363.25 crore, compared to Rs 2,362.22 crore in the same period last fiscal.

However, the company declared an interim dividend of Rs 0.50 per equity share, with the record date set for May 15.

Ahead of the earnings announcement, shares of Manappuram Finance ended flat on Friday on the Bombay Stock Exchange (BSE) at Rs 228.95, up 0.48 per cent.

According to latest data, the market capitalisation of the firm stood at approximately Rs 19,300 crore as of May 9.

Reader Comments

R
Rahul K.
This is concerning for investors. The impairment charges jumping from ₹187 cr to ₹919 cr in just one year raises red flags. Hope management explains this properly in their concall. Gold loans are their bread and butter - they need to tighten risk assessment.
P
Priya M.
The AUM growth looks good at 18.7% but profits tell a different story 😕 Gold prices helped them but operational efficiency seems lacking. That dividend declaration of ₹0.50 feels like just saving face after such poor results.
S
Sanjay T.
As someone who's taken gold loans from Manappuram, their service is good but these numbers worry me. If they're struggling financially, will they become more aggressive in loan recovery? Hope RBI keeps an eye on NBFCs showing such volatility.
A
Ananya R.
The ₹919 cr impairment charge is shocking! That's nearly 5% of their market cap wiped out in one quarter. Management better have solid explanations - retail investors like us need transparency. Maybe time to review my portfolio allocation to NBFC stocks.
V
Vikram J.
Interesting that despite the quarterly loss, yearly operating revenue crossed ₹10,000 cr. Shows the underlying business is strong but they took some bad hits. Gold loan demand won't slow down in India - if they fix their risk management, could bounce back. Long-term hold for me.
N
Neha P.
The numbers are bad but let's not forget this is just one quarter. Their branches in semi-urban areas are always crowded - shows trust in brand. Maybe they expanded too fast? Hope they learn from this and come back stronger 💪

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Tags:
Manappuram Finance Gold Loans Financial Earnings Q4 Results NBFC Sector Stock Market
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