Manappuram Finance Limited (MFL) has registered a 48 per cent dip in net profit for the quarter ended December 31, 2012. The company registered a net profit of Rs 84.38 crore, compared to Rs 161.37 crore for Q3 of the previous year.
Cumulative net profit for the nine months was down 14 per cent at Rs 349.86 crore, as against Rs 404.50 crore reported for the nine months up to December 31, 2011.
Operating income for the quarter fell to 586.20 crore compared to Rs 721.37 crore reported for Q3 of the previous year. Profit before tax for the quarter stood at Rs 124.57 crore (Rs 239.54 crore) while provision for income tax was at Rs 40.19 crore (Rs 78.17 crore).
Releasing the results to the media, V P Nandakumar, managing director & chief executive officer, said the company had faced greater stress on account of its high loan-to-value ratio and the subsequent realignment necessitated by regulatory changes.
“However, we are confident that with the positive report of the K U B Rao committee, and renewed willingness on the part of the banking sector, mutual funds and institutional investors to fund gold loans, the outlook from now on would be positive,” he said.
The company has introduced lower yielding gold loan products to restart growth in disbursements.
On a sequential basis, it registered a marginal fall of three per cent in its gold loans assets under management to Rs 10,378 crore compared with Rs 10,665 crore for Q2 of the current year.
However, aggregate gold loans disbursed during the quarter amounted to Rs 5,702 crore, representing a growth of 11 per cent over the Rs 5,148 crores disbursed during Q2 of this year.
Net NPA level has come down to 0.77 per cent from 0.86 per cent in Q2 of this year.
The company has achieved significant savings in its operating expenses which have come down to 5.03 per cent of average assets as compared to 6.27 per cent for comparable quarter of last year. Besides, in a major revamp of its manpower deployment, the number of employees per branch has been brought down—without retrenchments, by reallocation to new branches— to 5.57 as against 7.90.
Tier I capital of the company has improved to 23 per cent in comparison with 19 per cent for Q3 of last year. The company has opened 96 new branches during the quarter taking its national network to 3,140 branches across 26 states and UTs.