Manappuram Finance's consolidated net Q3 down 46% to Rs 261 cr

Shift to low-yield gold loans; aggressive advertising spends make dent

Manappuram Finance Ltd’s (MFL's) consolidated net profit fell by 46 per cent year on year (YoY) to Rs 261 crore in the third quarter ended December 2021 (Q3FY22), from Rs 483 crore the year-ago period (Q3FY21).

Sequentially, the gold finance company’s consolidated net profit was down from Rs 369 crore in the quarter ended September 2021 (Q2FY21).

The company said in an analyst presentation that the PAT has been affected temporarily due to the shift from high-yield to lower-yielding gold loans, coupled with aggressive marketing efforts and ad-spends. It is focused on Opex reduction which has increased the past two