Muthoot Finance Group* Loan Assets Under Management at Rs.32154 crore and consolidated profit for the year of Rs.1784crore
Standalone & Consolidated Financial Results of Muthoot Finance Ltd
Muthoot Finance Ltd consolidated Gross Loan Assets under management of the Group* achieved a YoY increase of 12% at Rs.32154cr as against last year of Rs. 28660cr.
Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 46%, at Rs. 1720crs for FY18 as against Rs. 1180crs in the previous year. Loan Assets stood at Rs. 29138crs as at March31, 2018 as against Rs.27278crs as at March31 ,2017, Y-o-Y growth of 7%. Income Tax paid during the year to ex-chequer is at a historic high of Rs.1037crs contributing to nation building.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, increased its loan portfolio by Rs. 1024crs at Rs. 1465crsduring the year. Total revenue for FY18stood at Rs.126 crore as against previous year total revenue of Rs. 24cr. It achieved a net profit of Rs.28crs in FY18as against previous year profit of Rs.3crs.
M/s. Belstar Investment and Finance Private Limited (BIFPL), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 66.61% stake, grewits loan portfolio during FY18by 97% reaching Rs. 1137crs. It achieved a profit after tax of Rs.34crsduring FY18as against previous year profit after tax of Rs.10crs. Its Gross and Net NPA stood at 0.
Muthoot Homefin (India) Limited has grown its loan portfolio by Rs.1024cr during the year reaching Rs.1465cr. The micro finance subsidiary which has a strong SHG model increased its loan portfolio by 97% during the year reaching Rs.1137cr. The NBFC in Sri Lanka increased its loan portfolio by 13% during the year. First Year Premium collections in the Insurance Broking subsidiary increased by 44% at Rs.101cr.
As regards Muthoot Finance ,though primary NPA portfolio declined , on account of secondary NPA which is nothing but standard loans of a borrower whose any other loan account is a primary NPA , overall NPA % has increased. Further , a higher primary NPA is mainly on account of more time given to customers for repayment on our shorter tenor loans of 6months which became NPA faster than our conventional loan tenor of 12months . Company is currently maintaining increased standard asset provision of 1.2576% and 0.30% as on March31,2018.
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. 101cr during FY18 as against Rs. 70cr in the previous year. It generated a Profit after Tax of Rs.11cr during FY18 as against Rs.6cr in the previous year.
The Sri Lankan subsidiary – Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 60% stake, increased its loan portfolio during the year by 13% at LKR 995cr. Total revenue for FY18 stood at LKR 256cr as against previous year total revenue of LKR 213cr. It generated a profit after tax of LKR 20cr during FY18as against previous year profit after tax of LKR 28cr .
Commenting on the results M G George Muthoot, Chairman stated, “A historic record performance with 49% increase in Consolidated profit for the year at Rs.1784cr. While the thrust on increasing the gold loan business continues, Group’s focus on diversification of lending portfolio has started yielding results. The consolidated loan book of the Group has increased by 12% Y-o-Y at Rs.32154cr .We are proud to announce that we are one of the Top 50Corporate income tax payers in the country paying Rs.1037crs during FY 18.”
Speaking on the occasion George Alexander Muthoot, Managing Director said, “Our subsidiaries are contributing 10% of Group assets and have again shown an excellent performance during the year. We are expecting this contribution to increase to 15% of Group’s % higher than the regulatory requirement of 0.40%.”