Muthoot Finance AUM up by 16% at INR 34316 crore

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Muthoot Finance Ltd Consolidated Loan Assets under management achieved a YoY increase of 16% at Rs.34316 crore as against last year of Rs. 29500 crore. During the quarter Consolidated Loan Assets under management increased by 7% of Rs. 2157 crore.

Standalone & Consolidated Loan Assets of Muthoot Finance Ltd.

Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 43%, at Rs. 492 crore for Q1FY19 as against Rs.345 crore in the previous year. Loan Assets stood at Rs. 30997 crore as at June 30, 2018 as against Rs.27857 crore as at June 30, 2017, Y-o-Y growth of 11%. During the quarter, Loan Assets increased by 6% of Rs. 1855 crore.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs.1621crore as against previous year of Rs.596 crore, a YoY increase of 172%. During the quarter, loan portfolio increased by Rs.156crore, QoQ growth of 11%. Total revenue for Q1FY19 stood at Rs. 50 crore as against previous year total revenue of Rs.19 cr. It achieved a net profit of Rs.11crore in Q1FY19 as against previous year profit of Rs.4 crore. Its Gross and Net NPA stood at 0.51% and 0.43% as on June 30, 2018.

M/s. Belstar Investment and Finance Private Limited (BIFPL) , an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 71.16% stake, grew its loan portfolio to Rs. 1236 crore as against last year of Rs.665 crore, a YoY increase of 86%. During the quarter, loan portfolio increased by Rs.99crore, QoQ growth of 9%. It achieved a profit after tax of Rs.14crore during Q1FY19 as against previous year profit after tax of Rs.5 crore. Its Gross and Net NPA stood at 0.83% and 0.45% as on June 30, 2018.

Muthoot Insurance Brokers Pvt Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a First year premium collection amounting to Rs. 49 crore during Q1FY19 as against Rs. 16crore in the previous year. It generated a Profit after Tax of Rs.2crore during Q1FY19 as against Rs.1crore in the previous year.

The Sri Lankan subsidiary – Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 60% stake, increased its loan portfolio to Rs.462crore as against last year of Rs.383crore, a YoY increase of 21%. During the quarter, loan portfolio increased by Rs.47 crore, QoQ growth of 11%. Total revenue for Q1FY19 stood at Rs.29 crore as against previous year total revenue of Rs.25 crore. It generated a profit after tax of Rs.0.68crore during Q1FY19 as against previous year profit after tax of Rs.2.39crore.

Commenting on the results M G George Muthoot, Chairman stated, “We witnessed a strong growth by the Group with Consolidated Loan Assets growing QoQ of 7% reaching highest level of Rs.34316 crore. Gold Loan portfolio also witnessed a strong growth during the quarter with Muthoot Finance loan assets increasing by Rs.1855 crore ,a QoQ increase of 6%.Profit After Tax of MFIN increased by 43% at Rs.492 crore as against last year of Rs.345 crore. ”

Speaking on the occasion George Alexander Muthoot, Managing Director said, “Our subsidiaries achieved YoY loan growth of 102% reaching Rs. 3319 crore as against last year of Rs.1644 crore. They are contributing 10% of Group Loan assets. We are expecting this contribution to increase to 15% of Group’s assets by the end of the year. Muthoot Homefin (India) Limited has grown its loan portfolio to Rs.1621 crore as against previous year of Rs.596 crore, a YoY increase of 172%. The micro finance subsidiary which has a strong SHG model increased its loan portfolio to Rs. 1236crore as against last year of Rs.665 crore, a YoY increase of 86%. The NBFC in Sri Lanka increased its loan portfolio by 11% during the quarter. First Year Premium collections in the Insurance Broking subsidiary increased by 206% at Rs.49crore. Though we have transitioned to Expected Credit Loss Model on implementation of IND-AS , the NPA under earlier method seen decreased from Rs.2033crore (6.98%) as on March 31,2018 to Rs. 1413 crore(4.56%) as on June 30 ,2018 , of which Rs.524crore is due to borrowerwise classification which otherwise could be classified as standard loans. The relevant number under IND–AS, stage 3 assets, is Rs.883 crore(2.85%)”

Other Highlights:

Public Issue of Non-Convertible Debentures

During the quarter, Company successfully completed 18th Public Issue of Non-Convertible Debentures of an issue size of Rs.3000crore. The issue was oversubscribed and was closed on second day of issue opening.