Manappuram Finance shares decline 15 percent after Q1 result
Published On: Wednesday, August 11, 2021 | By: Team KnowMyStock
Shares of Manappuram Finance slipped 15 percent at Rs 163.45 on the BSE in the intra-day trade on Wednesday after the company reported consolidated profit after tax (PAT) at Rs 436.90 crore, The company has posted Rs 368.11 crore during the previous quarter ended June 2020, up 18.7 percent year on year (YoY), but down 8 percent quarter on quarter (QoQ) for the quarter ended June 2021 (Q1FY22). The company missed street’s expectations due to lower net interest income (NII) in the first quarter of the financial year 2021-22 (April-June). Income from operations was up by 3.4 percent to Rs 1,565 crore in Q1FY22 as against Rs 1,513 crore in Q1FY21, Manappuram Finance said in a regulatory filing. The gold loan book declined 13 percent QoQ to Rs 16,500 crore and gold holdings slipped 11 percent QoQ to 58.1 tonnages. Its assets under management (AUM) hit a six-quarter low.
Non-gold AUM, however, grew by eight percent to Rs 8,200 crore from Rs 7,600 crore. Provisions for bad loans were down by 16 percent to Rs 122 crore for the quarter from Rs 145 crore a year ago.
Brokerage firm Motilal Oswal Financial Services has maintained a buy call on the stock after the Q1 numbers, with a target price of Rs 220.
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