Shares of Manappuram Finance slipped 12 per cent to Rs 168.25 on the BSE on Wednesday after the corporate reported a consolidated revenue after tax (PAT) at Rs 436.90 crore within the June 2021 quarter — down 8 per cent sequentially. The determine, nonetheless, was 18.7 per cent larger on a year-on-year foundation.
The corporate missed Road expectations as a result of decrease internet curiosity revenue (NII). In Q1FY22, NII was up 13.3 per cent YoY however down 2.3 per cent QoQ. Provisions, too, had been elevated at Rs 120 crore.
The gold mortgage e-book declined 13 per cent QoQ to Rs 16,500 crore and gold holdings slipped 11 per cent QoQ to 58.1 tonnage. Over the past two quarters, gold holdings have cumulatively declined 15 per cent and gold AUM 18 per cent over this era. In all non-gold segments, the respective mortgage books had been flat sequentially.
The corporate stated lockdowns in the course of the months of Might and June and department closures adversely affected new buyer additions (down by 36 per cent sequentially throughout Q1FY22). This has come again to regular ranges since July/August.
Analysts at Motilal Oswal Monetary Providers stated commentary from the gold finance NBFC suggests a robust uptick in demand and new buyer acquisitions in July 21, which seems to have sustained in August-MTD’21 as properly. “MGFL’s shorter tenure gold mortgage product (three months v/s the trade common of 6–12M) has led to increased auctions and withdrawals from prospects, leading to sustained decline in gold AUM/holdings during the last two quarters,” they stated.