
Non-banking financial company Manappuram Finance Ltd on Friday reported 58 per cent jump in consolidated net profit at Rs 413 crore for the quarter ending March 31, 2023. It reported a consolidated profit of Rs 261 crore a year ago.
The company's Board has announced an interim dividend of Rs 0.75 per equity share of face value Rs 2 each.
Total revenue of the Kerala-based NBFC in the fourth quarter was Rs 1,771 crore, rising 19 per cent compared to Rs 1,481 crore in the year-ago period.
Company's pre-tax profit from gold loan business, which accounts for three-fourth of its total profit, increased 16 per cent to Rs 422 crore. Meanwhile, its micro-finance division posted a pre-tax profit of Rs 144 crore, versus a year-ago loss.
However, Manappuram's gold loan assets under management declined 2 per cent year-on-year as higher gold prices meant borrowers needed lower collateral to borrow money. Its gold loan customers portfolio increased 0.4 per cent year-on-year.
The results come as the gold loan financier's promoter and Chief Executive Officer V P Nandakumar faces a probe related to a private company he owned. Last week, Enforcement Directorate froze Nandakumar's assets, including the company shares he owns.
“A total of six premises in Thrissur, where the company is headquartered, were covered during the searches that were launched on Wednesday. The case pertains to allegations of money laundering through illegal collection of deposits from the public,” an ED spokesperson said.
“The frozen assets include deposits kept in eight bank accounts, investment in listed shares and shares of Manappuram Finance Limited. Various incriminating documents showing money laundering and property documents of 60 immovable properties were also seized during the course of the searches,” the spokesperson added.
While Nandakumar has said the enforcement action is not linked to Manappuram, the company's shares have tumbled 15 per cent since May 3, when the investigation was announced.
Ahead of the results, Manappuram's shares closed 4.8 per cent lower on Friday at Rs 110.15.
With inputs from Reuters
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