Conference Call with Manappuram Finance Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Full earnings call.
Key Remarks from Mr. Nandakumar, CEO Manappuram Finance
Gold loans account for two-thirds of our portfolio. The 2008 financial crisis was tough on the economy but we saw strong growth, so we do have some buffer from broader trends.
This time, by focusing on online channels despite closure of offices, we kept the momentum going. We were able to continue with loan disbursal. While we have reopened offices footfalls are low because of limits on public transport.
We expect demand to rise once restrictions come off and as stalled business gets back on their feet.
We have seen good volumes despite the impact of COVID19. Our consolidated AUM was 29% up YoY and 4.7% QOQ. Growth was driven by increase in gold holdings and higher gold prices.
Our average LTV is less than 50%, against RBI limit of 75%. Customers have more room to borrow.
Our microfinance subsidiary Aashirvad Finance saw an increase of 43% YoY and 9.6% QoQ in consolidated AUM. We have the lowest operational expenses in the industry.
We expect some short term pain post moratorium in microfinance. But seeing our experience, we are much more positive on this in the medium term.
Our commercial finance business saw higher NPA aggravated by the lockdown. During the quarter chose to reduce our lending portfolio to small NBFCs and MFIs. We continue getting funds from our banks and AMC partners.