Highlights:

The consolidated net profit of Rs 369.88 crore for Q2FY2022, down by 8.8% compared to Rs 405.44 crore in Q2FY2021.

The consolidated assets under management (AUM) grew by 5.7% to Rs 28421.63 crore from Rs 26902.73 crore a year ago, and by 14.8% from Rs 24755.99 crore a quarter ago.

The company has recorded robust growth during the quarter in business volumes across segments such as gold loans, microfinance, home and vehicle loans portfolio.

It reflects the emerging recovery in the rural and unorganized sectors of the economy and going forward the company expects to sustain the growth along with improved profitability.

The gold loan portfolio increased 13.2% qoq to Rs 18719.53 crore.

The number of live gold loan customers increased to 25.1 lakh end September 2021 from 24.1 lakh a quarter ago.

The microfinance subsidiary, Asirvad Microfinance has posted 44.1% surge in AUM to Rs 7162.49 crore from Rs 4,971.03 crore a year ago. With 25.7 lakh customers and 1,334 branches across 23 states and UTs, Asirvad Microfinance is now India's fourth largest NBFC-MFI.

The home loans subsidiary, Manappuram Home Finance, reported an AUM of Rs 732.19 crore from Rs 620.62 crore in Q2 FY2021.

Vehicles & Equipment Finance division posted an AUM of Rs 1267.08 crore from Rs 1062.28 crore end September 2020i.

In aggregate, the company's non-gold loan businesses account for a 34% share of its consolidated AUM.

Average borrowing costs for the standalone entity declined by 67 basis points to 7.94% in Q2FY2022.

The gross NPA (standalone) stood at 1.59% with net NPA 1.30% end September 2021.

The capital adequacy ratio (standalone) stood at 31.84%.

On a consolidated basis, the total borrowings of the company stood at Rs 25024.14 crore.

The total number of live customers was 52.11 lakh end September 2021.

In October 2021, International rating agency S&P upgraded the long-term issuer credit rating of Manappuram Finance from B+ to BB- with stable outlook.

The company has responded to the competition with lower pricing and longer tenors loans.

The company has hired additional 1622 marketing personnel, which would contribute to growth ahead.

The gold loan portfolio growth is expected at 10-5% for FY22.

The surplus liquidity for the company stands at Rs 4580 crore and undrawn bank lines of at Rs 4270 crore end September 2021.

The gold tonnage has surged 11.4% to 64.7 tonnes in Q2FY2022.

The company added 3.89 lakh new gold loan customers in Q2FY22 compared with 2 lakh customers added in Q1FY2022.

The gold loan disbursements stood at Rs 34783 crore and gold auctions were at Rs 360 crore in Q2FY2022.

The interest accrued on gold loans stood at Rs 815 crore or (4.3% of AUM.

Restructured loan book in micro finance business stood at Rs 1000 crore, housing loans at Rs 50 crore, vehicle loans at Rs 2 crore and gold loans at Rs 50 crore.

The collection efficiency in the microfinance business has improved to 91% in Q2FY2022 from 74% in Q1FY2022, while the company expects collection efficiency to improve to 95% in coming quarter.

The company expects the yields to moderate by 200 bps, which would be offset by higher efficiency and reduction in the cost of funds. The net impact on spread is expected at 150 bps.

The company would gradually reduce Tier 1 to 25% from existing levels of 32%.

The company expects sustainable RoA of 4.5%-5.0% in the gold loan business and a RoE of 20%.