Manappuram Finance (531213) Q4 98/99 earnings summary

Executive summary

• FY99 operating income and disbursements grew, but net profit fell to Rs. 51.20 lakh from Rs. 80.02 lakh, mainly due to write-offs and higher tax outflow.

• Business shifted toward gold loans amid continued weakness in the automobile and NBFC markets; two-wheeler and consumer-durable finance were planned next.

Financial highlights

• Income from operations rose to Rs. 589.72 lakh from Rs. 537.06 lakh; total expenditure increased to Rs. 352.08 lakh from Rs. 324.55 lakh.

• Gross profit before depreciation and taxes increased to Rs. 237.64 lakh from Rs. 212.51 lakh; net profit declined to Rs. 51.20 lakh from Rs. 80.02 lakh.

• Profit before tax was Rs. 85.36 lakh versus Rs. 101.56 lakh; provision for tax increased to Rs. 34.16 lakh from Rs. 21.54 lakh.

• Total disbursements rose 19.36% to Rs. 1,190 lakh; funds deployed increased 5.85% to Rs. 1,718 lakh.

• Recommended dividend was 10% on equity shares; Rs. 11 lakh was transferred to Statutory Reserve.

Outlook and guidance

• Directors aimed to consolidate market position and improve profitability despite the unfavorable NBFC environment.

• Planned diversification included two-wheeler finance and consumer durables, following entry into gold loans.