Manappuram Finance Q3 Results Review - Microfinance Offsets Weaker Performance In Gold Loan: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Manappuram Finance Ltd.’s Q3 FY23 operating performance was in line with expectation, with net income/operating profit at Rs 3.9 billion/5.9 billion. Though there was a decline in the gold loan portfolio (down 9% YoY, down 3% QoQ), it was compensated by a stronger growth in the non-gold loan portfolio (up 33% YoY, up 16% QoQ), driving 4%QoQ growth in consolidated assets under management. Micro finance business business (25% of the AUM) contributed meaningfully with AUM growth at up 18% YoY (up 13% QoQ), improved asset quality (6.7% versus 8.8% in 2QFY23) and improved profitability (Rs. 706 million versus 566 million in Q2 FY23). Asset quality in gold loan continued to improve with gross / net stage-III at 1.6%/1.4% from 2.0%/1.8% and credit cost also reduced by 30bps to 0.7%. We estimate a 13% compound annual growth rate in Manappuram Finance’s AUM to deliver a 17% CAGR in earnings over FY22-FY25E. With optimal product mix along with improving asset quality and expansion in the MFI business, Manappuram Finance should be able to improve their return on asset/return on equity to 4.6%/17.7% by FY25E from 4.1%/16.9% in FY22, respectively..Click on the attachment to read the full report:.Cholamandalam Investment Q3 Results Review - Strong AUM Growth; NIMs Stable: IDBI Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Manappuram Finance Q3 Results Review - Microfinance Offsets Weaker Performance In Gold Loan: Systematix

Asset quality in gold loan continued to improve

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