Manappuram Finance (531213) Q4 01/02 earnings summary

Executive summary

• FY2001-02 net profit rose 106% YoY to Rs. 114.86 lakh despite a challenging economic environment; gold advances and deployment of funds expanded sharply.

• Growth plans combined branch expansion and proposed diversification with additional funding capacity through debentures, a share allotment and higher borrowing authority.

Financial highlights

• Income from operations was Rs. 693.85 lakh vs. Rs. 673.51 lakh; total expenditure was Rs. 452.41 lakh vs. Rs. 422.62 lakh.

• Gross profit before depreciation and taxes was Rs. 241.44 lakh; depreciation Rs. 64.08 lakh; tax provision Rs. 62.50 lakh; net profit Rs. 114.86 lakh vs. Rs. 55.85 lakh.

• Paid-up capital remained Rs. 300 lakh; reserves increased to Rs. 218.95 lakh from Rs. 120.14 lakh.

• Recommended dividend was 10%; Rs. 23.50 lakh was transferred to Statutory Reserve and Rs. 50 lakh to General Reserve.

Outlook and guidance

• Directors anticipated better prospects for well-managed, self-regulated finance businesses, while identifying diversification as necessary for sustained growth.

• Prospective areas included insurance, instant money transfer and full-fledged money changing; plans also targeted strengthening hire-purchase and leasing operations.

• Further branch expansion in northern business centres was planned, with corresponding increases in net owned funds and working-capital needs.