Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 59%, at Rs. 464crs for Q3 FY18 as against Rs. 291crs in the previous year. The net profit for 9M FY18 stood at Rs.1269crs an increase of 48% as against last year of Rs.858crs. Loan Assets stood at Rs. 28265crs at Dec 31, 2017, as against Rs.27608crs as at Sep 30, 2017.
Muthoot Homefin (India) Ltd (MHIL), the wholly-owned subsidiary, increased its loan portfolio by Rs. 270crs at Rs. 1100crs during the quarter. For 9M FY18, loan portfolio grew by Rs.659crs. Total revenue for Q3 FY18 & 9M FY18 stood at Rs. 36crs & Rs. 81crs as against previous year total revenue of Rs.6cr & 11cr respectively. It achieved a net profit of Rs. 8crs & Rs.16crs in Q3 FY18 & 9M FY18 as against previous year profit of Rs.92lakhs and Rs.74 lakhs.
M/s. Belstar Investment and Finance Private Limited (BIFPL), an RBI registered microfinance NBFC and Subsidiary Company where Muthoot Finance holds 64.60% stake., grew its loan portfolio during Q3 FY18 & 9M FY18 by 19% & 64% respectively reaching Rs. 945crs. It achieved a profit after tax of Rs.10crs & Rs.22crs during Q3 FY18 & 9MFY18 as against previous year profit after tax of Rs.2crs & Rs.7crs. Its Gross and Net NPA stood at 0.84% and 0.37% respectively as on Dec 31, 2017.
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. 22crs & Rs.59crs during Q3 FY18 & 9M FY18 as against Rs. 15crs & Rs.44crs in the previous year respectively.
The Sri Lankan subsidiary – Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 60% stake, increased its loan portfolio during the quarter by 3% and for 9M by 13% at LKR 975crs. Total revenue for Q3 FY18 & 9M FY18 stood at LKR 65crs & LKR 188crs as against previous year total revenue of LKR 57crs & LKR 155crs. It generated a profit after tax of LKR 5crs & LKR 14crs during Q3 FY18 & 9M FY18 as against previous year profit after tax of LKR 8crs & LKR 19crs.
Commenting on the results M G George Muthoot, Chairman stated, “Another historic record performance with 59% increase in net profits at Rs.464crs. Considering the performance of the Company in 9months, Board is glad to announce highest ever dividend of 100% ie., Rs. 10/- per equity share. The consolidated loan book of the group has increased by 10% Y-o-Y at Rs.30712crs continuing with diversification activities.”
Speaking on the occasion George Alexander Muthoot, Managing Director said, “Our subsidiaries have again shown an excellent performance. Muthoot Homefin (India) Limited has grown its loan portfolio by Rs.270crs for the 9 months reaching Rs.1100crs. The microfinance subsidiary which has a strong SHG model increased its loan portfolio by 64% during the 9 months reaching Rs.945crs. The NBFC in Sri Lanka increased its loan portfolio by 13% during the 9 months. First Year Premium collections in the Insurance Broking subsidiary increased by 34% at Rs.59crs. The rise in NPA accounts in Muthoot Finance 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 1.25% higher than the regulatory requirement of 0.35%.”