Informist, Thursday, Nov. 14, 2024

By Sachi Pandey

MUMBAI – Muthoot Finance Ltd. Thursday reported an all-time high net profit of INR 12.51 billion for the quarter ended September, posting a rise of 26.3% from INR 9.91 billion a year ago. The increase was driven by a significant rise in loan assets under management. Sequentially, profit rose 16.0% from INR 10.79 billion in Apr-Jun.

Despite the record high, the company's net profit fell slightly short of analysts' expectations. According to an average of estimates from seven brokerages, the company's net profit was seen rising to INR 12.67 billion in Jul-Sept, driven by a rise in its gold loan book.

Muthoot's standalone loan assets under management hit a record high of INR 901.97 billion as of Sept 30, up 31% from a year ago. Its gold loan assets rose 28% on year to INR 861.64 billion.

In a strong push towards new customer acquisition, the company reported its highest-ever gold loan disbursements to new customers at INR 106.87 billion in Apr-Sept. "Among the peer NBFC group, we have the highest average gold loan AUM (assets under management) per branch of Rs. 17.75 crores (INR 177.5 million)," George Alexander Muthoot, managing director of the company, said in a press release. During Apr-Sept, the gold loan portfolio grew 18% to INR 132.85 billion.

"On the back of these achievements, we wish to revise our earlier guidance for FY25 on gold loan growth from 15% to 25%. We are also encouraged by the progress in our non-gold loan portfolio, with notable growth across microfinance, personal loans, and home loans, strengthening our position as a diversified financial services conglomerate", Alexander Muthoot said.

The strong growth in assets under management helped the total income to grow 34.3% on year to INR 41.26 billion in Jul-Sept from INR 30.74 billion a year ago. However, total expenses in Jul-Sept rose 38.7% to INR 24.18 billion from INR 17.43 billion a year ago.

The company reported revenue from operations of INR 41.17 billion for the quarter, up 34.6% from INR 30.60 billion a year ago. For the first half of the financial year, the revenue from operations was INR 78.21 billion, up 29.1% from INR 60.58 billion for the same period last year. Net profit in Apr-Sept grew 18.5% to INR 23.30 billion.

On the asset quality front, the lender's stage-III loan assets rose to INR 38.81 billion as of Sept. 30 from INR 33.53 billion a quarter ago. Stage-III assets on gross loan assets were at 4.30% on Sept. 30 as compared to 3.98% a quarter ago and 4.01% a year ago. Muthoot Finance's net non-performing asset ratio was at 3.68% as on Sept 30 as compared to 3.48% a quarter ago.

The capital adequacy ratio of the lender moderated to 26.96% as of Sept. 30 from 27.47% a quarter ago. The company reported a provisional coverage ratio of 14.52% as on Sept. 30.

The non-banking financier said its board has approved an additional equity infusion of INR 5 billion in Muthoot Money Ltd., a wholly-owned subsidiary of the company.

Muthoot Finance announced its earnings after market hours on Thursday. The company's shares ended 0.3% higher at INR 1,775.85 on the National Stock Exchange.

End

Edited by Saji George Titus

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