Muthoot Finance net profit up by 77% at INR 858 crore

Muthoot Finance Q2 report

 

Consolidated Profit after Tax up by 42% YoY at INR 1472 crore for H1 FY20.

Highlights:

• Consolidated Loan Assets Under Management increased by 13% YoY at Rs.40390 crore for H1 FY20
• Consolidated Profit after Tax increased by 42% YoY at Rs.1472 crore for H1 FY20
• Standalone Loan Assets Under Management increased by 11% YoY at Rs.35731 crore for H1FY20
• Standalone Profit after tax increased by 42% YoY at Rs.1388 crore for H1 FY20

Consolidated Results of Muthoot Finance Ltd

Muthoot Finance Ltd’s Consolidated Loan Assets under management achieved a YoY increase of 13% at Rs.40390 crore as against last year of Rs.35835 crore for H1 FY20.Consolidated Profit after tax achieved a YOY increase of 42% of Rs.1472 crore as against last year of Rs.1033 crore for H1 FY20

Standalone 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 42%, at Rs.1388 crore for H1FY20 as against Rs. 975 crore in the previous year. Loan Assets stood at Rs.35731 crore as at September 30, 2019 as against Rs.32319 crore as at September 30, 2018, Y-o-Y growth of 11%.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs.2098 crore as against previous year of Rs.1775 crore , a YoY increase of 18%. During Q2 FY20, loan portfolio increased by Rs.110 crore, QoQ growth of 6%. Total revenue for Q2 FY20 & H1 FY20 stood at Rs.91 crore & Rs.152 crore as against previous year total revenue of Rs.55 crore & Rs.104 crore .It achieved a profit after tax of Rs.14 crore & Rs.20 crore in Q2FY20 & H1 FY20 as against previous year profit of Rs.11 crore & Rs.21 crore . Its Stage III Asset on Gross Loan Asset % as on September 30, 2019 stood at 1.10%.

M/s. Belstar Microfinance Private Limited (BMPL), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs.2107 crore as against last year of Rs.1381crore , a YoY increase of 53%. During Q2 FY20, loan portfolio increased by Rs.169 crore. It achieved a profit after tax of Rs.28 crore & Rs.51 crore in Q2FY20 & H1 FY20 as against previous year profit after tax of Rs.16 crore & Rs.29 crore. Its Stage III Asset on Gross Loan Asset % as on September 30, 2019 stood at 1.02%.

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.71 crore & Rs.132 crore in Q2FY20 & H1 FY20 as against Rs.67crore & Rs.116 crore in the previous year. It generated a Profit after Tax of Rs.4 crore & Rs.7 crore in Q2FY20 & H1FY20 as against Rs. 4 crore & Rs.6 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 1314 crore as against last year of LKR 1124 crore, a YoY increase of 17%. During Q2 FY20, loan portfolio increased by LKR 24 crore. Total revenue for Q2FY20 & H1 FY20 stood at LKR 86 crore & LKR 166 crore as against previous year total revenue of LKR 69 crore & LKR 138 crore . It generated a profit after tax of LKR 3 crore & LKR 5 crore in Q2FY20 & H1 FY20 as against previous year profit after tax of LKR 2 crore & LKR 4 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 Q2FY20, it has increased its loan portfolio to Rs.426 crore. During Q2 FY20, loan portfolio increased by Rs.34 crore. Total revenue for Q2 FY20 & H1 FY20 stood at Rs.17 crore & Rs.31 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 13% at Rs.40390 crore during H1 FY20 as against last year of Rs.35835 crore. Consolidated Profit increased by 42% at Rs.1472 crore during H1 FY20 as against last year of Rs.1033 crore.”

Speaking on the occasion George Alexander Muthoot, Managing Director said “During the quarter, the Company got rated by 3 International Credit Rating agencies –Fitch Ratings at “BB+/Stable”, S&P Global at “BB/Stable” & Moody’s Investor Service at “Ba2/Stable. In October 2019, Company raised 450 Million USD through issuance of 6.125% Senior Secured Notes making the first private sector NBFC to make a debut issue under 144A/Reg. S mode”