Manappuram Finance has posted a weak set of earnings in Q1FY18. The assets under management (AUM) growth has been quite weak and the asset quality has deteriorated. In an interview to CNBC-TV18, Kapil Krishan, CFO, Manappuram Finance spoke about the results and his outlook for the company.
The demand conditions in the bottom of the pyramid, which is where we operate, has been weak post demonetisation. Also, the drought has affected the bottom of the pyramid and has affected demand for our products as well, he said.
Despite that, there has been a marginal decline also that was the main reason why gold loan business saw marginal decline, he added.
Overall AUM growth looks slightly muted but as the demonetisation effect wears off, in the coming quarters we expect the pick up to happen in lending, said Krishnan.
He expects 10-15 percent growth in AUM going ahead. Gold loan business is free from credit risk, he further mentioned.For full interview, watch accompanying video...