Manappuram Finance shares fall over 8% as Q3 net profit halves; check key details

Manappuram’s consolidated net profit declined 51.3% to ₹278.46 crore in the third quarter of the financial year 2024-2025 as against ₹525.07 crore in Q3FY24.

However, the company’s total revenue from operations grew marginally by 2.8% to ₹2,559.72 crore as compared to ₹2,633.1 crore in the corresponding quarter last fiscal year.

During the intraday trade, the share of Manappuram Finance slipped 8.49% to ₹177.75 apiece on BSE.

The Reserve Bank of India (RBI) had imposed the ban at the start of the quarter due to “usurious” pricing and excessive mark-ups over funding costs, lifting it in January this year. This led to a 5% drop in microfinance revenue to ₹665 crore.

Bad loans and provisions in Manappuram's microfinance unit rose fourfold to ₹473 crore, accounting for a large chunk of total company-wide provisions of ₹555 crore in the December quarter.

The company also declared an interim dividend of ₹1 per equity share of face value ₹2. Manappuram has fixed February 21, 2025, as the record date to ascertain the entitlement of interim dividends among the shareholders, and dividends/dividend warrants will be paid on or before March 14, 2025.

However, Manappuram's revenue from its gold loan portfolio rose 17%, aided by gold prices jumping to record highs.

The company’s net interest income also surged 5%.

Alongside its earnings, Manappuram Finance announced plans to raise up to $2 billion under its global medium-term note (GMTN) program.