Manappuram Finance clocks Rs 191 crore net loss in Q4, NII declines 6.7%

Manappuram Finance on Friday reported a consolidated net loss of Rs 191.17 crore for the quarter ending March 31, compared to a profit of Rs 561.53 crore in the same period last fiscal.

The loss was primarily due to a significant increase in impairment on financial instruments, which surged to Rs 919.2 crore -- compared to Rs 187.8 crore in the same quarter last financial year and Rs 554.6 crore in the previous quarter.

Net Interest Income (NII) also fell by 6.7 per cent year-on-year (YoY) in the fourth quarter of FY25, dropping to Rs 1,464.3 crore from Rs 1,569 crore in the corresponding quarter of the previous fiscal.

Total expenses in Q4 were also increased to Rs 2,599.13 crore, up from Rs 1,616.69 crore in the year-ago period, according to its stock exchange filing.

For the fiscal year 2024–25 (FY25), Manappuram Finance reported a consolidated net profit of Rs 1,216.15 crore, a decrease from Rs 2,188.67 crore in the previous fiscal. Operating revenue for the year stood at Rs 10,040.76 crore, up from Rs 8,848.01 crore in FY24.

The company's Assets Under Management (AUM) grew by 18.7 per cent year-on-year to Rs 42,070 crore.

The increase in AUM was driven by higher demand for gold loans, which benefited from a rise in gold prices during the year. Total income in Q4 was Rs 2,363.25 crore, compared to Rs 2,362.22 crore in the same period last fiscal.

However, the company declared an interim dividend of Rs 0.50 per equity share, with the record date set for May 15.

Ahead of the earnings announcement, shares of Manappuram Finance ended flat on Friday on the Bombay Stock Exchange (BSE) at Rs 228.95, up 0.48 per cent. According to latest data, the market capitalisation of the firm stood at approximately Rs 19,300 crore as of May 9.