Manappuram Finance (531213) Q4 03/04 earnings summary

Executive summary

• FY2003-04 operating income rose 35.84% to Rs.1,218.55 lakh and PAT increased 56.61% to Rs.176.55 lakh amid strong gold-loan growth and branch expansion.

• Operations combined hire purchase and gold loans with expanded fee-based services, including insurance marketing, forex, money transfer, vehicle finance and online share trading through the wholly owned subsidiary.

Financial highlights

• Operating income was Rs.1,218.55 lakh versus Rs.897.06 lakh; total expenditure was Rs.912.39 lakh versus Rs.683.46 lakh.

• Profit before tax was Rs.281.48 lakh versus Rs.178.56 lakh; PAT was Rs.176.55 lakh versus Rs.112.73 lakh.

• Aggregate loans advanced grew 34% YoY; operating profit before depreciation reached Rs.306.16 lakh versus Rs.213.60 lakh.

• Cash from operating activities was negative Rs.61.52 lakh, versus positive Rs.211.86 lakh in FY2002-03; cash and cash equivalents ended at Rs.235.04 lakh.

Outlook and guidance

• Management expected better prospects, supported by new fee-based activities, further branch openings, improved service standards and efforts to reduce operating and finance charges.

• Expansion plans included nationwide reach, while rural presence and diversified services were positioned to support business despite intense competition.