What Led to Manappuram Finance's Rs 191 Crore Net Loss in Q4?
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Synopsis
Manappuram Finance revealed a staggering net loss of Rs 191.17 crore in Q4, a sharp contrast from the previous year's profit. This article delves into the reasons behind this downturn and highlights the company's financial performance, including its revenue growth and increased expenses.
Key Takeaways
- Manappuram Finance reported a net loss of Rs 191.17 crore in Q4.
- Net Interest Income declined by 6.7%.
- Total expenses in Q4 rose to Rs 2,599.13 crore.
- Assets Under Management grew by 18.7% year-on-year.
- Interim dividend of Rs 0.50 announced.
Mumbai, May 9 (NationPress) - Manappuram Finance disclosed a consolidated net loss of Rs 191.17 crore for the quarter ending March 31. This is a significant decline compared to a profit of Rs 561.53 crore during the same period last fiscal year.
The loss was primarily attributed to a marked increase in impairment on financial instruments, which escalated to Rs 919.2 crore compared to Rs 187.8 crore in the same quarter of the previous fiscal and Rs 554.6 crore in the prior quarter.
Additionally, Net Interest Income (NII) experienced a year-on-year decline of 6.7 percent in the fourth quarter of FY25, decreasing to Rs 1,464.3 crore from Rs 1,569 crore in the same quarter of the previous fiscal.
In Q4, total expenses also saw an increase, amounting to Rs 2,599.13 crore, up from Rs 1,616.69 crore in the corresponding period last year, as per the company's filing with the stock exchange.
For the fiscal year 2024-25 (FY25), Manappuram Finance reported a consolidated net profit of Rs 1,216.15 crore, a decline from Rs 2,188.67 crore in the prior fiscal year.
The operating revenue for the year reached Rs 10,040.76 crore, an increase from Rs 8,848.01 crore in FY24.
The company’s Assets Under Management (AUM) rose by 18.7 percent year-on-year to Rs 42,070 crore, boosted by heightened demand for gold loans, which benefitted from rising gold prices over the year.
In Q4, total income was recorded at Rs 2,363.25 crore, slightly up from Rs 2,362.22 crore in the same period last fiscal.
Despite the losses, the company announced an interim dividend of Rs 0.50 per equity share, with the record date set for May 15.
On the day of the earnings announcement, shares of Manappuram Finance closed unchanged on the Bombay Stock Exchange (BSE) at Rs 228.95, reflecting a 0.48 percent increase.
As of May 9, the market capitalization of the firm was approximately Rs 19,300 crore.
Point of View
It is crucial to analyze the recent financial results of Manappuram Finance with an objective lens. The significant net loss raises concerns about the company's financial health amid increasing expenses and a decline in net interest income. However, the growth in Assets Under Management indicates potential resilience. Investors and stakeholders should closely monitor these trends as the company navigates its challenges.
NationPress
09/05/2025
Frequently Asked Questions
What caused Manappuram Finance's net loss?
The net loss was primarily driven by a sharp increase in impairment on financial instruments and a decline in Net Interest Income.
How did Manappuram Finance perform in FY25?
Manappuram Finance reported a consolidated net profit of Rs 1,216.15 crore for FY25, which is a decrease from the previous fiscal year.
What is the current market capitalization of Manappuram Finance?
As of May 9, the market capitalization of Manappuram Finance stood at approximately Rs 19,300 crore.
