Manappuram Finance (531213) Q4 07/08 earnings summary

Executive summary

• FY07/08 consolidated revenue reached Rs 80.58 crore, up from Rs 44.21 crore; PBT was Rs 32.53 crore and PAT Rs 21.36 crore, with PAT up 97.78% YoY.

• Expanded to 320 branches across 13 states, backed by private-equity investment and increased bank funding; gold lending remained the core growth engine.

Financial highlights

• Consolidated income from operations was Rs 79.66 crore versus Rs 43.65 crore; consolidated PAT was Rs 21.36 crore versus Rs 10.81 crore.

• Standalone income from operations rose 82% to Rs 79.66 crore; PAT increased 98% to Rs 20.99 crore from Rs 10.61 crore.

• Consolidated EPS was Rs 19.09 basic and Rs 17.63 diluted, versus Rs 9.65 for both measures in FY07.

• Fee-based income increased to Rs 0.96 crore from Rs 0.63 crore; the board recommended a 20% equity dividend, with Rs 2.36 crore cash outflow.

Outlook and guidance

• Targeted a gold-loan book of Rs 2,000 crore by FY08/09-end and a long-term 10% share of an estimated 15,000-tonne privately held gold market.

• Planned further branch expansion in urban and semi-urban markets, new customer products, technology upgrades and more diversified, lower-cost funding.