Manappuram Finance , a leading non-banking financial company (NBFC) in India, has approved its unaudited standalone and consolidated financial results for the quarter ended June 30, and announced several important updates.

Interim Dividend Declaration

The company's board of directors has declared an interim dividend of Rs. 0.50 per equity share. This represents a 25% payout on the face value of Rs. 2.00 per equity share.

Record Date

Manappuram Finance has set August 14 as the record date for determining shareholder eligibility for the interim dividend. Shareholders whose names appear on the company's register as of the close of business on this date will be entitled to receive the dividend.

Leadership Changes

The company announced significant changes in its leadership structure:

• Mr. V.P. Nandakumar, the current Managing Director, will assume the role of Chairman of the Board effective August 28.
• Dr. Shailesh Jayantilal Mehta, the current Chairman, will retire on August 27, after completing his second term as an Independent Director.

Additionally, Manappuram Finance reported several changes in Senior Management Personnel, including resignations and new designations, though specific details were not provided.

Investment in Subsidiary

During the quarter, Manappuram Finance subscribed to 8,33,33,333 equity shares of its subsidiary, Asirvad Micro Finance Limited, at Rs. 60.00 per share. This move demonstrates the company's commitment to strengthening its position in the microfinance sector.

Conclusion

The Q1 results, interim dividend announcement, and leadership transitions mark a significant period for Manappuram Finance. These decisions reflect the company's focus on financial performance, shareholder returns, and strategic governance as it continues to navigate the evolving financial landscape.

Manappuram Finance Limited , a leading non-banking financial company (NBFC), reported a significant drop in its consolidated net profit for the first quarter. The company's financial performance was marked by decreased revenue and compressed margins.

Key Financial Highlights

• Consolidated net profit fell to ₹1.38 billion, down from ₹5.55 billion in the same quarter last year.
• Revenue decreased to ₹22.62 billion from ₹24.90 billion year-over-year.
• EBITDA declined to ₹10.29 billion compared to ₹16.42 billion in the previous year's quarter.
• EBITDA margin compressed to 45.48% from 65.98% in the prior year period.

Segment Performance

The company's financial results reveal a mixed performance across its business segments:

Balance Sheet and Asset Quality

As of the end of the quarter, Manappuram Finance reported:

• Total Segment Assets: ₹512.36 billion
• Total Segment Liabilities: ₹387.21 billion
• Stage 3 Loan Assets to Gross Loan Assets ratio: 2.96%
• Net Stage 3 Loan Assets to Gross Loan Assets ratio: 2.56%

Capital Adequacy and Liquidity

The company maintained strong capital and liquidity positions:

• Capital Adequacy Ratio: 24.77%
• Liquidity Coverage Ratio (LCR): 174.76%

Management Actions

In response to the challenging quarter, Manappuram Finance's Board of Directors declared an interim dividend of ₹0.50 per equity share with a face value of ₹2 each.

Outlook

While Manappuram Finance faced headwinds in the first quarter, the company's strong capital position and liquidity coverage ratio indicate resilience. The management's decision to declare an interim dividend suggests confidence in the company's financial stability despite the profit decline.

Investors and analysts will be watching closely to see how Manappuram Finance navigates the current challenges and works to improve its profitability in the coming quarters.