Manappuram Finance Q4 results: Net profit soars 35.7% amid gold rally, dividend declared

Gold loan issuer Manappuram Finance posted strong results for the quarter ended March 2024, amid the ongoing rally in the yellow metal which is considered to have factored in its earnings.

The non-banking finance company (NBFC) on Friday said its consolidated net profit in Q4FY24 increased to ₹563.5 crore, up 35.7% as compared to ₹415 crore in the year-ago quarter.

The net interest income (NII) – the difference between interest earned and interest paid – jumped 32% year-on-year to ₹1,494 crore during the quarter under review, as compared to ₹1,129 crore recorded in the corresponding period of the preceding fiscal year.

The solid Q4 results logged by Manappuram Finance coincides with the jump in gold prices, with the metal rallying by over 9% in 2024 so far in rupee terms.

In terms of value, the demand for gold in India climbed by 20% year-on-year in the January-March period to ₹75,470 crore, as per a recent report released by the World Gold Council. In absolute terms, the demand for gold, including both jewellery and investment, increased to 136.6 tonnes during the quarter from 126.3 tonnes in the year-ago period, the report said.

Manappuram Finance declares dividend

The NBFC said its board of directors have declared an interim dividend of ₹1 per equity share of face value ₹2. The company has fixed June 5 as the record date to ascertain the shareholders who would be eligible for receiving the dividend.

The dividend amount would be dispatched on or before June 22, 2024, the regulatory filing stated.

Shares of Manappuram Finance closed at ₹181.25 apiece on the NSE on May 24, up 1.5% as against the previous closing price. Year-to-date, the shares have jumped by 5.7%, and the surge has been sharp at 64% in the last one year.