Muthoot Finance consolidated PAT up by 9% at INR 563 crore

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Consolidated Loan Assets Under Management increased by 18% YoY at Rs.40228 crore, Standalone Profit after tax increased by 8% YoY at Rs.530 crore for Q1 FY20.

Consolidated Results of Muthoot Finance Ltd

  • Muthoot Finance Ltd Consolidated Loan Assets under management achieved a YoY increase of 18% at Rs.40228 crore as against last year of Rs.33954 crore.
  • During the quarter, Consolidated Loan Assets under management increased by 5% of Rs.1924 crore.
  • Consolidated Profit after tax achieved a YOY increase of 9% of Rs.563 crore as against last year of Rs.518 crore.

www.newsbarons.comStandalone Results of Muthoot Finance Ltd and its subsidiaries

Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 8%, at Rs.530 crore for Q1FY20 as against Rs.492 crore in the previous year. Loan Assets stood at Rs.35816 crore as at June 30, 2019 as against Rs.30997 crore as at June 30, 2018, Y-o-Y growth of 16%. During Q1 FY20, Loan Assets increased by Rs.1570 crore.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs.1988 crore as against previous year of Rs.1621 crore, a YoY increase of 23%. During Q1 FY20, loan portfolio increased by Rs.80 crore. Total revenue for Q1 FY20 stood at Rs.62 crore as against previous year total revenue of Rs.49 crore. It achieved a profit after tax of Rs.6 crore in Q1 FY20 as against previous year profit of Rs.11 crore. Its Stage III Asset on Gross Loan Asset % as on June 30, 2019 stood at 0.81%.

M/s. Belstar Investment and Finance Private Limited (BIFPL), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs.1939 crore as against last year of Rs. 1237 crore, a YoY increase of 57%. During Q1 FY20, loan portfolio increased by Rs. 97 crore. It achieved a profit after tax of Rs. 23 crore in Q1 FY20 as against previous year profit after tax of Rs. 12 crore. Its Stage III Asset on Gross Loan Asset % as on June 30, 2019 stood at 1.16%.

Muthoot Insurance Brokers Pvt Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs.61 crore in Q1 FY20 as against Rs.50 crore in the previous year. It generated a Profit after Tax of Rs.3 crore in Q1 FY20 as against Rs.2 crore in the previous year.

The Sri Lankan subsidiary – Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 72.92% stake, increased its loan portfolio to LKR 1290 crore as against last year of LKR 10,68 crore, a YoY increase of 21%. During Q1 FY20, loan portfolio increased by LKR 33 crore. Total revenue for Q1 FY20 stood at LKR 80 crore as against previous year total revenue of LKR 69 crore. It generated a profit after tax of LKR 3 crore in Q1 FY 20 as against previous year profit after tax of LKR 2 crore.

Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. Recently, Company has started extending loans for Commercial Vehicles and Equipments. During Q1 FY20, it has increased its loan portfolio to Rs.393 crore. During Q1 FY20, loan portfolio increased by 82 crore. Total revenue for Q1 FY20 stood at 14 crore.

Commenting on the results M G George Muthoot, Chairman stated “We are glad to announce that consolidated loan assets of the Group grew by 18% at Rs.40228 crore during Q1 FY20as against last year of Rs.33954 crore. Consolidated Profit increased by 9% at Rs.563 crore during Q1 FY20as against last year of Rs.518 crore. During the quarter the company declared dividend of Rs.12 per equity share which is 120% of the face value with a total payout of Rs.580 crore for FY19. Company also made public issue of debentures focusing on retail investors raising Rs.851 crore which shows our ability to have diversified funding sources”.

Speaking on the occasion George Alexander Muthoot, Managing Director said “Gold loans are of short duration of average 3-4 months. In Q1 FY 20, we disbursed on an average, loans of Rs.6500 crore per month and made collections of Rs.6000 crore per month which resulted in a net growth of Rs.1500 crore for the quarter. Because of such heavy cash inflows from collections, we do not face any liquidity issues. However, due to the uncertainty around NBFC sector there are challenges in getting fresh bank funding for meeting the growth requirements. We have been pursuing alternative sources of funding through public issuance of retail NCDs. Further as on June 30, 2019, we hold gold jewellery worth Rs.550 Billion for a loan amount of Rs.352 Billion ie., security of 156% of the loan amount.”