Shares of Manappuram Finance rose over 5 percent to an intraday high of Rs 131.90 apiece after the gold financing company reported a 43.7 percent increase in net profit for the March-ended quarter to Rs 398.20 crore on robust interest income. In the same period of the previous year, the company posted a net profit of Rs 277.39 crore.
The non-banking financial company's (NBFC) total income during the quarter under review rose to Rs 1,618.15 crore as against Rs 1,166.51 crore a year ago, Manappuram Finance said in a regulatory filing.
Of this, the interest income was Rs 1,471.91 crore, higher than Rs 1,085.80 crore in the year-ago quarter. For 2019-20, the company's net profit soared 56 percent to Rs 1,618.15 crore as against Rs 948.55 crore in the previous year.
Total income for FY20 rose to Rs 5,551.19 crore from Rs 4,242.04 crore in 2018-19.
Manappuram Finance said its board has approved increasing the overall borrowing limit to Rs 30,000 crore from Rs 25,000 crore, subject to shareholders' approval in the ensuing Annual General Meeting.
It also reappointed Madhu Mohan, General Manager as the Chief Risk Officer (CRO) of the company for a period of one year, with effect from July 17, 2020.