{"id":127605,"date":"2022-02-16T08:12:01","date_gmt":"2022-02-16T13:12:01","guid":{"rendered":"https:\/\/44.250.171.167\/?p=127605"},"modified":"2022-10-05T06:09:56","modified_gmt":"2022-10-05T10:09:56","slug":"manappuram-finance-ltd-q3-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/manappuram-finance-ltd-q3-fy22-earnings-conference-call-insights\/","title":{"rendered":"Manappuram Finance Ltd Q3 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><span class=\"embed-youtube\" style=\"text-align:center; display: block;\"><iframe loading=\"lazy\" class=\"youtube-player\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/iPKM_Ozw60c?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en-US&#038;autohide=2&#038;wmode=transparent\" allowfullscreen=\"true\" style=\"border:0;\" sandbox=\"allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox\"><\/iframe><\/span><\/p>\n<p><strong>Key highlights from Manappuram Finance Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/MANAPPURAM\/\">MANAPPURAM<\/a>) Q3 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>On gold loan demand, the company continued its offering of competitive interest rate to high ticket size customers, the impact of this new strategy was better growth, but decline on spreads and margins.<\/li>\n<\/ul>\n<ul>\n<li>MANAPPURAM foresees a steady to declining trend in its GNPA going forward. In 3Q22, the company witnessed growth in gold loan in terms of amount and tonnage.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Dhaval Gada from DSP Mutual Fund asked about the INR217 crore breakdown of opex, excluding employee cost, into ad, IT support and other opex. Bindhu CFO said the majority of the expenses between the two quarters remain the same. The increase between the quarters is INR40 crore. Majority is coming from advertisement, INR51 crore, INR10 crore from depreciation, and IT support, rent and other operating overheads remains similar number.<\/li>\n<\/ul>\n<ul>\n<li>Dhaval Gada from DSP Mutual Fund asked about the advertisement spends trajectory and the plans going forward. V.P. Nandakumar MD answered that the company has to go for a massive advertisement because it felt there is slump in the market due to prolonged lockdown. The ad spend of INR51 crore for 3Q22 was a booster dose for the market, which may not continue in the coming quarters and will be moderated to lower levels.<\/li>\n<\/ul>\n<ul>\n<li>Dhaval Gada from DSP Mutual Fund also enquired about the return ratio and its guidance. V.P. Nandakumar MD replied that the company\u2019s yield was higher compared to the other players in the market. \u00a0The company is maintaining its yield at around 21% and trying to maintain that. In the processes, the growth may get moderated for one or two quarters.<\/li>\n<\/ul>\n<ul>\n<li>Piran Engineer of CLSA asked that what percentage of the company\u2019s loan book are teaser loans. V.P. Nandakumar MD said the percentage of teaser loan is around 20%.<\/li>\n<\/ul>\n<ul>\n<li>Piran Engineer of CLSA also asked why the company has not seen any growth in Ashirvad. \u00a0Nandakumar MD replied that the company saw uncertainty with the Omicron variant, so the company\u2019s underwriting was made tighter and preference was on retaining existing good customers. As things improve, the company will increase the speed of disbursement. And collections, inclusive of restructured portfolio and other loans, all inclusive, have come to a level of 87-98%. And this is expected to improve to 99-100% by next month.<\/li>\n<\/ul>\n<ul>\n<li>Piran Engineer of CLSA also asked what percentage of loan book is at a three month tenure, which was 53% in 2Q22. V.P. Nandakumar MD replied that it\u2019s more or less same, 50:50 kind of thing. 50% for three months and balance in normal tenure.<\/li>\n<\/ul>\n<ul>\n<li>Abhijit Tibrewal from Motilal queried about momentum pickup in gold loans or does the demand in gold loan continue to remain tepid. \u00a0V.P. Nandakumar MD said the company is not seeing much increase in the momentum in January, February 2022. However, the company believes things will get better with schools opening and such things.<\/li>\n<\/ul>\n<ul>\n<li>Ashwini Agarwal from JM Financial questioned that why would a borrower come to the company rather than going at another NBFC or a bank lending at a cheaper rate. V.P. Nandakumar MD replied that for the borrowers there will be some regular connect with some NBFCs. For those customers pledging for a short duration, the interest rate difference may not be a big issue as many of the company\u2019s customers are short term borrowers.<\/li>\n<\/ul>\n<ul>\n<li>Ashwini Agarwal from JM Financial asked about the time taken for disbursement of loans for the customers versus other NBFCs and banks. V.P. Nandakumar MD said the company disburses loans within 15 mins and if it\u2019s a very new customer it may take 20 mins. This is the case with many NBFCs. For banks, it may take 1-2 hrs etc. as the procedures are more.<\/li>\n<\/ul>\n<ul>\n<li>Sanket Chheda from\u00a0 B&amp;K Securities asked that why the company is losing confidence on the growth front going ahead as a sharp cut was taken on yields and reported 8% growth. V.P. Nandakumar MD said it is losing customers at a yield of around 25%. That\u2019s the reason for bringing the yield to around 20%. The company has seen a decline to INR16,000 crore from INR19,000 crore in 1Q and then reached to INR20,000 crore. MANAPPURAM believes going below 20-21% is not good for gold loan NBFC.<\/li>\n<\/ul>\n<ul>\n<li>Manan Tijoriwala\u00a0 from ICICI Prudential asked about proportion of disbursements above 3 lakhs ticket size and if there is less demand in the lower ticket size customers. Bindhu CFO said the company used to track above INR1 lakh ticket size and has seen a 3-4% increase during 3Q22. COVID has impacted bottom of the pyramid highest, so the demand has come down from the lower ticket size customers.<\/li>\n<\/ul>\n<ul>\n<li>Manan Tijoriwala\u00a0 from ICICI Prudential also asked about the rate sensitivity between larger versus smaller ticket size customers and if the company expects yield to remain at 20% or if it go back to the 25% number. V.P. Nandakumar MD replied that it all depends on the market conditions, government policies, and market liquidity etc. And going back to 25% cannot be ruled out.<\/li>\n<\/ul>\n<ul>\n<li>Dhaval Gada from DSP asked if the company still sees the visibility of achieving 15-20% AUM growth for next year. \u00a0V.P. Nandakumar MD said the company is foreseeing that opportunity.<\/li>\n<\/ul>\n<ul>\n<li>Dhaval Gada from DSP also enquired about the credit cost and the company\u2019s expectations going forward. V.P. Nandakumar MD said the company is expecting some impact on credit cost for the next 2-3 quarters. After that it will go to pre-COVID level, provided there are no more variants of COVID entering. The company expects the situation to come back to pre-COVID level in 4Q23 of 99% collection.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Manappuram Finance Ltd (MANAPPURAM) Q3 FY22 Earnings Concall Management Update: On gold loan demand, the company continued its offering of competitive interest rate to high ticket size customers, the impact of this new strategy was better growth, but decline on spreads and margins. MANAPPURAM foresees a steady to declining trend in its [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[8265,1792],"class_list":["post-127605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-finance","tag-financial-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":129624,"url":"https:\/\/alphastreet.com\/india\/manappuram-finance-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":127605,"position":0},"title":"Manappuram Finance Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 19, 2022","format":false,"excerpt":"https:\/\/youtu.be\/zOcVftH8xQo Key highlights from Manappuram Finance Ltd (MANAPPURAM) Q4 FY22 Earnings Concall Q&A Highlights: Dhaval Gada from DSP asked about the pricing pressure in the gold business and the outlook on lending rates in gold loan business. V.P. Nandakumar MD said that the company will settle where it believes to\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128405,"url":"https:\/\/alphastreet.com\/india\/manappuram-research-tear-sheet-q3-fy-2022\/","url_meta":{"origin":127605,"position":1},"title":"Manappuram  Research Tear Sheet Q3 FY 2022","author":"sreerupa","date":"April 5, 2022","format":false,"excerpt":"Manappuram Finance Ltd is an Indian NBFC. It is located in Valapad, Thrissur, Kerela. It was incorporated in 1949. The company mainly deals with gold loan, forex & money transfer, SMS finance and commercial vehicle loan. The shares trade on BSE. As per the data submitted on December 31, 2021,\u2026","rel":"","context":"In &quot;Research Summary&quot;","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":125775,"url":"https:\/\/alphastreet.com\/india\/earnings-highlights-of-manappuram-finance-for-q2-2022\/","url_meta":{"origin":127605,"position":2},"title":"Earnings highlights of Manappuram Finance for Q2 2022","author":"Nishad","date":"November 15, 2021","format":false,"excerpt":"Manappuram Finance Ltd (NSE: MANAPPURAM) posted its second-quarter 2022 earnings results. The company had a consolidated net profit of \u00a0\u20b91554 crores which reduced 1% year on year. Manappuram Finance had a net profit of \u20b9376 cores or \u20b94.37 per share or \u20b9418 crores or \u20b94.79 per share in the same\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":156168,"url":"https:\/\/alphastreet.com\/india\/manappuram-finance-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":127605,"position":3},"title":"Manappuram Finance Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 13, 2023","format":false,"excerpt":"Key highlights from Manappuram Finance Ltd (MANAPPURAM) Q2 FY24 Earnings Concall Financial Performance Net profit increased 37% year-on-year to INR551 crore driven by profitability in gold loans and microfinance business. Gold loan AUM was INR20,809 crore, up 8.4% year-on-year. Maintained pricing discipline in competitive environment and improved profitability. Consolidated AUM\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":166890,"url":"https:\/\/alphastreet.com\/india\/manappuram-finance-ltd-q3fy25-52-fall-in-profits\/","url_meta":{"origin":127605,"position":4},"title":"Manappuram Finance Ltd Q3FY25; 52% fall in Profits","author":"Chirag Gupta","date":"February 14, 2025","format":false,"excerpt":"Manappuram Finance is a Non-Banking Finance Company (NBFC), which provides a wide range of fund based and fee based services including gold loans, money exchange facilities, etc. The Company is a Systemically Important Non-Deposit taking NBFC(NBFC-ND). Financial Results: Manappuram Finance Ltd reported Revenues for Q3FY25 of \u20b92,560.00 Crores up from\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/02\/4-7.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/02\/4-7.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/02\/4-7.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/02\/4-7.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/02\/4-7.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/02\/4-7.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":159079,"url":"https:\/\/alphastreet.com\/india\/manappuram-finance-ltd-q3fy24-46-rise-in-profits\/","url_meta":{"origin":127605,"position":5},"title":"Manappuram Finance Ltd Q3FY24; 46% rise in Profits","author":"Chirag Gupta","date":"February 22, 2024","format":false,"excerpt":"Manappuram Finance is a Non-Banking Finance Company (NBFC), which provides a wide range of fund based and fee based services including gold loans, money exchange facilities, etc. The Company is a Systemically Important Non-Deposit taking NBFC(NBFC-ND). Financial Results: Manappuram Finance Ltd reported Revenues for Q3FY24 of \u20b92,305.00 Crores up from\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/02\/image-182.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/02\/image-182.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/02\/image-182.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/02\/image-182.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/02\/image-182.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/02\/image-182.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/127605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=127605"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/127605\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=127605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=127605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=127605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}