Kerala-based gold loan company Manappuram Finance on Thursday reported more than 20%
year-on-year drop in its second quarter (July-September) net profit at around
Rs 108 crore in 2012-13; due to rise in borrowing costs and some operating
expenditures.
Finance costs or the cost of borrowings rose nearly 13% YoY
to Rs 287 crore. Employee benefit expenses increased 11% to Rs 85 crore while
rest costs soared 62% to around Rs 23 crore.
"In the second quarter, we have de-grown our business.
However, our loan book is likely to grow by Rs 600 crore in the next two
quarters," I Unnikrishnan, managing director of Manappuram Finance told
moneycontrol.com briefly.
When asked to explain the key reasons behind Q2 numbers, he
suggested to contact Perfect Relations - the Mumbai based PR agency, for
getting further clarification. The company is yet to issue any detailed press
release for its Q2 numbers.
Other income rose marginally to Rs 11 crore from Rs 10.40
crore a year back. Short term loans (credit against pledging gold jewellery)
expanded at a slower pace of 4.50% to Rs 10,101 crore. Cash and bank balances
fell more than 10% y-o-y to Rs 733 crore.
Manappuram shares on Thursday rose more than 1% to close the
day at Rs 38.10. In the last one year, those tanked nearly 39% as against more
than 1% rise in the share price of Muthoot Finance, another Kerala-based rival
gold loan company.
Earlier in March, 2012; the Reserve Bank of India (RBI) had
issued a notification directing all non-banking finance companies engaged in
gold loan business to maintain a loan to value (LTV) ratio of 60%. This means,
a borrower has to pledge gold jewellery worth Rs 100 to get a loan of Rs 60.
Prior to it, the same companies were reportedly giving loans with an LTV upto
70-80%.
RBI's revised norms were expected to hit their margins
badly. Thereafter, a media report suggested that some gold loan companies had
continued to violate the revised LTV norms by devising new strategies.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
No comments:
Post a Comment