Manappuram Finance (531213) Q4 06/07 earnings summary

Executive summary

• FY07 marked rapid expansion: 150 branches added, bringing the network to 237 locations; business volume exceeded Rs.457 crore.

• Net profit rose 168% to Rs.1,061.27 lakh, while gross income increased 121% to Rs.4,364.99 lakh.

• Gold and other loans were the largest reported segment, with Rs.3,203.38 lakh revenue and Rs.1,607.37 lakh segment result.

Financial highlights

• Standalone income from operations was Rs.4,365.00 lakh vs. Rs.1,974.28 lakh in FY06; total expenditure was Rs.2,623.26 lakh vs. Rs.1,319.67 lakh.

• Standalone PBT was Rs.1,635.14 lakh vs. Rs.606.20 lakh; PAT was Rs.1,061.27 lakh vs. Rs.395.54 lakh.

• Consolidated income was Rs.4,420.68 lakh, PBT Rs.1,664.43 lakh and PAT Rs.1,080.55 lakh; FY06 consolidated PAT was Rs.406.23 lakh.

• Standalone EPS was Rs.9.48 vs. Rs.3.44 reported; FY06 EPS reworked for the 1:1 bonus issue was Rs.7.44.

Outlook and guidance

• Growth plans centered on further branch openings, untapped private gold reserves, customer-focused products and cross-selling insurance and foreign-exchange services.

• Business and personal loans were launched and reported to be performing well; efforts to secure lower-cost funding and keep technology current continued.

• Management viewed the NBFC outlook as promising but dependent on credibility, efficiency, customer service and effective risk appraisal amid stronger competition.