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Shares of non-banking financial company Manappuram Finance hit over 2-month low on Q2 results.
The stock plunged as much as 7 per cent to Rs 92.30, its lowest since August 29.
Net profit of the Kerala-based gold loan company in the second quarter of FY18 has declined to ₹160.37 crore compared with ₹192.40 crore in the corresponding quarter of the previous fiscal. However, the company witnessed a 3.5 per cent increase in profit in the second quarter compared with ₹155.01 crore in the preceding quarter of the current fiscal.
VP Nandakumar, MD & CEO, said: “After demonetisation, the company went through three quarters without growth. But now our consolidated AUM has grown by 2.6 per cent over the preceding quarter. The pick-up in the rural economy following good monsoon has brightened the prospects.”
Its gold loan business performance was muted as smaller players and the unorganised sector were most impacted by the scrapping of high-value banknotes and the rollout of a nationwide sales tax, analysts at Antique Stock Broking say.
The microfinance business too suffered losses on account of defaults in Karnataka, says Antique Stock Broking.
The stock posted biggest intraday percentage loss in nearly three months.
(With inputs from Reuters)
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