declaration of dividend
Awaiting price reaction for this filing.
Manappuram Finance's board declared an interim dividend of Rs. 0.50 (25%) per equity share on a face value of Rs. 2, with record date set for May 15, 2025. This is the second interim dividend for FY25, following Rs. 1 per share declared in February 2025, taking the total interim payout to Rs. 1.50 per share for the year. For FY25, consolidated total income grew about 13% to Rs. 10,074.94 crore, but profit before tax fell sharply to Rs. 1,665.63 crore from Rs. 2,959.51 crore in FY24, mainly due to losses in the Micro Finance segment (Rs. 811.01 crore loss). Net profit for the year stood at Rs. 1,203.81 crore with EPS of Rs. 14.22. The board also approved investing up to Rs. 500 crore in compulsory convertible preference shares of subsidiary Asirvad Micro Finance and revised remuneration for the MD and Executive Director, subject to shareholder approval.
The dividend declaration is positive for shareholders, but the sharp drop in profits driven by microfinance losses tempers the optimism. Investors should note the lingering concerns from the embezzlement at subsidiary MACOM (Rs. 19.78 crore) and the previous RBI restrictions on Asirvad Micro Finance, which have since been lifted.