Manappuram Finance stock jumps 10% as net profit grows 37% in Q2; brokerages remain divided
Manappuram Finance, an NBFC firm, rallied sharply in Wednesday's trading session as investors reacted positively to the company's Q2FY24 performance. The company on Monday reported a 37% YoY jump in its consolidated net profit at ₹560.65 crore. In the corresponding quarter of last year, the company recorded a net profit of ₹409.5 crore.
Sequentially, the net profit increased by 12.6%, as compared to ₹498.02 crore reported in the quarter ending June 2023. It reported a 25% improvement in net interest income at ₹1,468 crore as against ₹1,168 crore reported in Q2 FY23. The total revenue during the quarter came in at ₹2,174 crore, a 27% increase compared to ₹1,714 crore in the same period last year.
Segment-wise, the ‘gold, loan, and other’ category of business contributed ₹1,537.22 crore in Q2 FY24 of the total revenue, and 'microfinance' added ₹636.80 crore. Also Read: Manappuram Finance Q2 result: Net profit jumps 37% to ₹561 crore; interim dividend declared In terms of asset quality, the GNPA improved to 1.6% from 2% in Q2FY23, while the net NPA dropped to 1.4% in Q2FY24 from 1.8% in the year-ago period. The Assets Under Management (AUM) in gold witnessed a QoQ increase of approximately 1% and a YoY increase of 8%, reaching around ₹20,800 crore.
The quantity of gold measured in tonnage remained relatively stable at 59.4 tonnes compared to the previous quarter. Also Read: Gold rate today jumps as soft US inflation data pulls down US dollar index to 10-week low Following the company's Q2FY24 numbers, the shares opened strongly in today's trading session at ₹153.50 apiece compared to the previous closing price of ₹140.35 apiece and strengthened further to ₹154.35 apiece, marking an impressive gain of 10%. Domestic brokerage
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