The company’s vehicle finance book has seen a significant deterioration in its asset quality, with Gross NPA rising to 9.2% from 6.7% during the March quarter. The deterioration also led to a 20 basis points jump in its standard NPAs.
The company’s other parameters during the quarter were also a miss on expectations. Assets Under Management (AUM) fell 1.4% from last year, while estimates were for a growth of 2%. Gold loan AUMs though, increased by 22% from last year.
Net Interest Income (NII) or core income earned declined by 10% from last year and 4.4% sequentially, while profitability was down 75% from last year, although the company had reported a net loss in March.
The management expects gold loan yields to moderate to 18% from the current 20.7% in the next four to six quarter, while Gold Loans will comprise of 75% of the portfolio, from 65% currently. MFI portfolio is expected to be caped at 10% of the total AUM.
On the flip side, the management expects the deal with Bain Capital to receive approval from the Reserve Bank of India by next month, while credit costs in the MFI space could decline by up to 40 basis points in the coming quarters.
Shares of Manappuram Finance had ended 1.4% lower on Friday at ₹257.35, at the lowest point of the day. The stock has risen 35% so far in 2025.