KOCHI:
Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets under management achieved a YoY increase of 18% at Rs.40228crs as against last year of Rs.33954crs. During the quarter, Consolidated Loan Assets under management increased by 5% of Rs.1924crs. Consolidated Profit after tax achieved a YOY increase of 9% of Rs.563crs as against last year of Rs.518crores.
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 8%, at Rs.530crs for Q1 FY20 as against Rs.492crs in the previous year. Loan Assets stood at Rs.35816crs as at June 30, 2019 as against Rs.30997crs as at June 30, 2018, Y-o-Y growth of 16%. During Q1 FY20, Loan Assets increased by Rs.1570crs.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs.1988crs as against previous year of Rs.1621crs, a YoY increase of 23%. During Q1 FY20, loan portfolio increased by Rs.80crs. Total revenue for Q1 FY20 stood at Rs.62crs as against previous year total revenue of Rs.49crs. It achieved a profit after tax of Rs.6crs in Q1 FY20 as against previous year profit of Rs.11crs. Its Stage III Asset on Gross Loan Asset % as on June 30, 2019 stood at 0.81%.
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. 1939crs as against last year of Rs. 1237crs, a YoY increase of 57%. During Q1 FY20, loan portfolio increased by Rs. 97crs. It achieved a profit after tax of Rs. 23crs in Q1 FY20 as against previous year profit after tax of Rs. 12crs. 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. 61crs in Q1 FY20 as against Rs. 50crs in the previous year. It generated a Profit after Tax of Rs. 3crs in Q1 FY20 as against Rs. 2crs 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 1290crs as against last year of LKR 10,68crs, a YoY increase of 21%. During Q1 FY20, loan portfolio increased by LKR 33crs. Total revenue for Q1 FY20 stood at LKR 80crs as against previous year total revenue of LKR 69crs. It generated a profit after tax of LKR 3crs in Q1 FY 20 as against previous year profit after tax of LKR 2crs.
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.393crs.During Q1 FY20, loan portfolio increased by 82crs. Total revenue for Q1 FY20 stood at 14crs.
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.40228crs during Q1 FY20 as against last year of Rs.33954crs. Consolidated Profit increased by 9% at Rs.563crs during Q1 FY20 as against last year of Rs.518crs. 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.580crs for FY19. Company also made public issue of debentures focusing on retail investors raising Rs.851crs 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.6500crs per month and made collections of Rs.6000crs per month which resulted in a net growth of Rs.1500crs 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.”
