Manappuram Finance Q3 results: Net profit rises 6% to ₹453 crore, announces interim dividend of ₹1

Manappuram Finance reported standalone net profit of ₹453.4 crore in Q3FY25, marking a 5.8 per cent year-on-year (YoY) rise from ₹428.6 crore in the same quarter of the previous year.

The company announced an interim dividend of ₹1 per equity share with a face value of ₹2. It has set February 21, 2025, as the record date to determine shareholder eligibility for this corporate action.

The company's net interest income (NII) experienced a stronger year-on-year growth of 13.7 per cent, rising to ₹1,160.9 crore from ₹1,021.2 crore in Q3 FY24.

The increase in NII reflects robust lending operations and better interest margins.

In addition to reporting its earnings, Manappuram Finance revealed plans to raise up to $2 billion through its Global Medium-Term Note (GMTN) program, aiming to strengthen its funding flexibility and support future growth.

Manappuram Finance financial highlights

Indian lenders have experienced an increase in default rates on microfinance loans—small, unsecured loans—following a period of aggressive expansion in the sector.

Manappuram’s microfinance unit saw a four-fold surge in bad loans and provisions, reaching ₹4.73 billion, which made up a significant portion of the company's total provisions of ₹5.55 billion for the October-December quarter.

At the beginning of the quarter, the Reserve Bank of India (RBI) had prohibited the unit from sanctioning and disbursing loans due to excessively high pricing and significant mark-ups over funding costs. This restriction was lifted last month.

Consequently, revenue from Manappuram’s microfinance business declined by around 5% to ₹6.65 billion during the quarter.

However, revenue from its gold loan portfolio, which accounts for 75% of total revenue, rose by 17%, benefiting from record-high gold prices. Higher gold prices increase the amount customers can borrow against their bullion, boosting loan issuance for gold financiers.

Ahead of earnings announcement, Manappuram Finance shares ended higher on the BSE, closing at ₹194.25, reflecting a 1.33% gain for the day.