Sense of urgency , Availability of other options in market I think r two key reasons
EPS of 2.05 vs 2.26 YoY
Consol 2.06 vs 2.41 yoy
2.06 vs 1.90 qoq
Consolidated revenue growth of 5.15% QoQ, which is good!
Decent set of results from manappuram
gold loan AUM up 5% QoQ, disbursements up 26% QoQ
operating expenditure to AUM down to 9.2% from 9.3%( which was going up during last few quarters), GNPA and NPA both down QoQ
Net profit flat
Finally seems to have turned around and given a small profit
AUM growth 7.5% QOQ and 27.9% YoY
NII growth 10% YoY and 22% QoQ
PAT up 101% QoQ ( Yoy suffered due to demon), turned loss to profit
Provisions down 18.5% QoQ
GNPA up slightly to 3.8 from 2.8 and NNPA down to 0.52
Housing finance had a flat AUM this quarter
CV finance did well with a 21% AUM growth
Expecting the MFI busniess to play well next quarter with risks being rise in interest rates
would wait for some more details in con call
DIs: invested since 80, added again @110
Easy ,fastest and hassle less disbursement of loan makes it convenient for many people
While non gold loan can’t happen in minutes
With much improved performance this quarter, we have now put the fallout from demonetisation behind us. From now on, it will be business as usual, we expect growth to pick up to the levels we saw before demonetisation," said V P Nandakumar, MD &CEO, Manappuram Finance.
The company is looking at fintech investment or strategic buyouts but there is nothing concrete yet, said Krishan.
Sorry this may sound like a very amateur question. But can somebody explain what is the difference between these 3 items with a live example if possible?
- Gross NPA
- Net NPA
Suppose bank has financed a loan of Rs 100/- but due to any reason bank is unable to recover the loan amt plus interest and as per RBI guidelines if bank is unable to recover its loans say in 90 days, the amount has to be transferred to NPA category. Bank has to create provision on this NPA after classifying it sub standard, doubtful or loss asset. This provision is deductible from profits of the bank also. In this case, if the account is classified as Sub standard and bank make a provisio of 10%, then the provision in this case will be Rs 10 and net NPA will be 90 i.e. Gross NPA Rs 100 - Provison Rs.10.
Better to always refer to RBI glossary for definition. e.g
Net NPA = Gross NPA - (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account + Total provisions held).
Management thinks it can grow at 20% CAGR
Value price to earning is half of growth
In this bull run where all companies have price to earning more than cagr ,this is a company whose growth was interrupted because of demonetisation
Now they have derisking their business by diversifying
Captital adequacy is best in the business
Promoters bought at almost the current price
Dividend yield is good
Currently market is too pessimistic about manappuram,but I think sooner or later rerating will happen
Also they are looking to cut the security expenses by digital security
Housing will pick up in future due to affordable housing
Vehicle finance doing good
And Microfinance has turned around
Anyhow for some reason beyond my understanding market is too pessimistic
May be I am missing something,not sure
Management have been guiding 20% growth all the time. But the reality is different. Review the YOY growth rate and you will get the picture. Diversification is good. But they are still a gold loan company predominantly. Therefore when the primary business growth rate falters it is a major red flag. Also gold loan have no direct relationship with demonetization or GST and these are no reasons for reduction in growth rate. I agree the valuation is cheap and I think it is cheap for a reason.
This is the first time I am trying to analyze an NBFC. So please pardon my ignorance. I have tried to assess the total write offs that Manappuram has made over the years against the total AUMs in a given year. Here are the numbers.
|Total write offs||3||18||14||38||46||83||47||27||32||108|
|Bad loans %||0.6%||1.8%||0.5%||0.5%||0.4%||0.8%||0.6%||0.3%||0.3%||0.8%|
All numbers are at the consolidated level.
Bad loans have been derived by adding up “Provision for standard assets” & “Bad debts written off and provision for bad debts” from Cash Flow Statements for corresponding years.
Total write offs of 416 Crs in 10 years for a company with an AUM for 13700 Crs isn’t bad at all.
So am I correct in simplifying it by saying
Provisions = Loans expected to go bad / have gone bad already
Gross NPA = Overall loans that have gone bad
Net NPA = Gross NPAs minus provisions
Maybe a disclosure on the extent of your investment.
Now 13% of my pf
Avg price 98
Puneet Kaur Kohli has joined Manappuram Finance as Group CTO. Headquartered in Cochin, Manappuram Finance is one of India’s leading gold loan NBFCs. Incorporated in 1992, Manappuram Finance has 4148 branches across 27 states/UTs with assets under management (AUM) of Rs. 13,723 crore and a workforce of 22,112.
In her new role, Puneet Kaur Kohli will be based at the company’s headquarters in Cochin and will report to the MD & CEO of Manappuram Finance VP Nandakumar.
It is interesting to note that Manappuram Finance has always been an early adopter of industry-leading technologies. It was one of the earliest to adopt the core banking platform despite the fact there were no ready-made software solutions for gold loans NBFCs. It developed its own proprietary solutions, and this technology platform has been one of its core strengths. The firm has leveraged technology in streamlining procedures to reduce turnaround times in gold loan disbursal and in implementing advanced risk management practices. It launched “Online Gold Loans” in 2015.
As the Group CTO, Kohli will be tasked with high priority projects aimed at the digital transformation of the gold loan NBFC. Her near-term priorities at the company including e-KYC, transitioning the ERP on cloud, adoption of analytics for customer centricity, mobility initiatives and creating a single view of the customer.
Prior to this, Kohli served as the Group Executive Vice President IT & CTO at Bajaj Capital. In a career spanning 24 years, she has worked with companies like Motorola, Reliance, Duncans, Carrier Aircon, UK Land Investments, Bharti Airtel Limited, Soma Networks and Motricity in countries namely, Dubai, US, UK, Canada & across APAC.
Awesome, they have been adding some good people in some key positions.
I am looking for Manappuram annual reports from 1995 to 2006. Does anyone have copy of all annual reports.
I have these and can share. Please let me know your email.