Earnings Review
Muthoot Finance Apr-Jun PAT rises 11% on yr, misses Street view
This story was originally published at 18:54 IST on 13 August 2024
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--Muthoot Finance Apr-Jun net profit 10.79 bln rupees
--Analysts saw Muthoot Finance Apr-Jun net profit 11.72 bln rupees
--Muthoot Finance Apr-Jun net profit 10.79 bln rupees vs 9.75 bln
--Muthoot Finance Apr-Jun revenue 37.04 bln rupees vs 29.99 bln
By Shubham Rana
NEW DELHI - Muthoot Finance Ltd today reported a 10.6% on year rise in its net profit to a record high of 10.79 bln rupees for the quarter ended June, on account of a jump in loan assets under management. Sequentially, the net profit was up 2.1%.
The company's net profit rose lower than expectations. Analysts had expected the company's net profit to rise 20.2% on year to 11.72 bln rupees.
The lender's loan assets under management rose 25% on year to a record high of 843.24 bln rupees as of Jun 30. Muthoot's gold loan assets under management rose to 809.22 bln rupees from 660.39 bln rupees a year ago.
The company reported the highest ever gold loan disbursement in Apr-Jun at 736.48 bln rupees. It also reported the highest ever gold loan disbursement to new customers at 56.51 bln rupees in quarter ended June.
The gold financier's interest income rose 23.6% on year to 36.56 bln rupees in Apr-Jun. Total revenue from operations was up 23.5% on year at 37.04 bln rupees. The company's other income fell 77.2% on year to 63.10 mln rupees in Apr-Jun. Finance costs jumped 27.0% on year to 13.51 bln rupees in the quarter ended June, which pushed total expenses to 22.18 bln rupees, up 29.6% on year.
The interest spread, or the difference between interest income on average loan assets and interest expense on average borrowings, eased to 9.52% in Apr-Jun from 9.76% in Jan-Mar.
On the asset quality front, the lender's stage-III loan assets rose to 33.53 bln rupees as of Jun 30 from 24.85 bln rupees a quarter ago. The tier-1 capital adequacy ratio of the lender moderated to 26.73% as of Jun 30 from 29.61% a quarter ago.
"With sweeping digitization across financial sector, we will continue to intensify our digital efforts to improve access to credit and include customers across the social pyramid," the lender's Chairman George Jacob Muthoot said in a press release. "As we continue to retain our leadership position in gold loan industry, our strategic emphasis on digital initiatives and the expansion of our non-gold loan portfolio positions us well for sustained success in 2024-25 (Apr-Mar) and beyond."
Muthoot Finance announced its earnings after market hours today. The company's shares ended 2.0% lower at 1,853.10 rupees on the National Stock Exchange. End
Edited by Vandana Hingorani
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