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.

Manappuram Finance Limited , a prominent player in the Indian financial services sector, has taken a significant step towards expanding its global funding capabilities. The company's financial and resources management committee has approved the conversion of its existing euro medium term note programme into a global medium term note (GMTN) programme, with plans to issue senior secured notes up to $2 billion.

Key Highlights

• Programme Conversion: Manappuram Finance has updated its existing euro medium term note programme to a global medium term note programme.
• Issuance Limit: The company plans to issue senior secured notes up to $2 billion under the GMTN programme.
• Regulatory Compliance: The issuance will be subject to market conditions and regulatory compliance.
• Note Offering: The notes will be issued pursuant to Regulation S and Rule 144A of the U.S. Securities Act of 1933.

Committee Approvals

The financial and resources management committee of Manappuram Finance's board of directors has approved several key aspects of the GMTN programme:

1. Execution of definitive documents related to the GMTN programme and issuance of notes.
2. Special consolidated financial statements for disclosure in transaction documents.
3. Delegation of authority to company officers for implementation of the programme.

Offering Details

Manappuram Finance has stated that a preliminary offering circular and other related documents will be made available to prospective investors. It's important to note that the notes will not be offered or sold in India.

Market Impact

This move by Manappuram Finance to establish a $2 billion GMTN programme signifies the company's ambition to tap into global capital markets. The successful implementation of this programme could potentially enhance the company's financial flexibility and support its growth strategies.

Investors and market watchers will likely keep a close eye on how this development unfolds, as it could have implications for Manappuram Finance's future funding mix and expansion plans.

As the company moves forward with this initiative, it will be crucial to monitor market conditions and regulatory compliance, which will play a significant role in the successful issuance of these notes under the newly approved GMTN programme.