Manappuram General Finance & Leasing, one of the largest financiers against gold, has posted 226 per cent rise in second quarter net profit at Rs 60.18 crore for the period ended September 30, 2010 as against Rs 18.46 crore in the corresponding quarter of the previous year. Operating income of the company, during the period, stood at Rs 243.19 crore as against Rs 86.41 crore, a rise of over 180 per cent.
V P Nandakumar, Executive Chairman, attributed the significant growth in net profit to the company’s robust performance in total Assets Under Management (AUM) which stood at Rs 4,955.8 crore, an increase of 178 per cent over second quarter of the previous year. In fact, the aggregate disbursements of gold loans during this quarter alone amounted to Rs 4,535.68 crore.
Importantly, the company could achieve significant savings in the cost of borrowings with the average cost now at 8.44 per cent as compared to 12.86 per cent during the second quarter of the previous year. Moreover, the non-interest operating expense to total expenses ratio was also held in check coming down to 7.97 per cent from 8.15 per cent. The company’s recent investments in top-notch brand ambassadors around the country are beginning to pay off with the increased visibility contributing extensively to the volumes.
The company has opened another 258 new branches during the quarter taking its national network to 1,393 branches spread across 16 states. Meanwhile, the average business per branch has increased to Rs 3.51 crore during the second quarter as compared to Rs 2.26 crore as of this time last year. Incidentally, in the previous quarter ending 30th June, 2010, this figure stood at Rs 2.92 crore.
A total of 2.78 lakh new customers were added during the quarter and the live customer base of the company now stands at an impressive 8.31 lakh (4.4 lakh last year).
