Manappuram Finance Q1 Review - Gold Loan Growth Slows Down Further: IDBI Capital

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IDBI Capital Report

Manappuram Finance Ltd.’s gold portfolio de-grew by 7% QoQ due to higher auctions (Rs 15 billion versus Rs 4 billion QoQ) as well as high assets under management attrition in large ticket size (three to five lakhs).

This resulted into slowdown in AUM growth to (down) 2% YoY versus 8% YoY (FY21).

However, Manappuram Finance's non-gold portfolio grew by 8% YoY led by 20% YoY growth in micro finance institution (24% share of AUM).

MFI reported deterioration in asset quality as gross non performing asset stood at 3.6% versus 2.5% QoQ; however MFI book reported profitability as against loss during corresponding quarter last year.

We need to watch out for recovery in MFI portfolio in H2 FY22.

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