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30% hike in the PAT of Muthoot Finance

Published in Banking & Finance Thursday, 10 August 2017 18:07

    Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 30%, at Rs. 351crs for Q1 FY18 as against Rs. 270crs in the previous year. Loan Assets registered an increase by Rs. 574crs during Q1 FY18 which is an increase of 2% and Rs.1992crs increase since last year which is an increase of 8% . Loan Assets stood at Rs. 27852crs at the end of June 30,2017.

Board has decided to acquire remaining 11.73% holding with other shareholders in Muthoot Homefin (India) Ltd at an aggregate price of Rs. 38.72crs. With this acquisition , MHIL will become a wholly owned subsidiary. Further Board has decided to infuse Rs.100crs in MHIL as equity share capital. During the quarter, its loan portfolio increased by Rs. 155crs at Rs. 596crs. Total revenue for Q1 FY18 stood at Rs. 19crs as against previous year total revenue of Rs.1cr. It achieved a profit after tax of Rs. 4crs in Q1 FY18 as against previous year loss of Rs.44 lakhs.

M/s. Belstar Investment and Finance Private Limited (BIFPL) , an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 64.60% stake., grew its loan portfolio during the quarter by 11% at Rs. 628crs. It achieved a profit after tax of Rs.5crs during the quarter as against previous year profit after tax of Rs.2crs. Its Gross and Net NPA stood at 0.18% and 0.04% respectively as on June 30,2017.
Muthoot Insurance Brokers Pvt Limited, an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a First year premium collection amounting to Rs. 16 crs during Q1 FY18 as against  Rs. 10 crs  in the previous year.

The Sri Lankan subsidiary - Asia Asset Finance PLC. where Muthoot Finance holds 60% stake , increased its loan portfolio during the quarter by 5% at LKR 908crs. Total revenue for Q1 FY18 stood at LKR 59crs as against previous year total revenue of LKR 45crs. It generated a profit after tax of LKR 6crs during the quarter as against previous year similar profit after tax.

Commenting on the results M G George Muthoot, Chairman stated, “Company could achieve a growth of Rs.574crs in its loan assets during the quarter even in the backdrop of seemingly challenging external environment which shows that initiatives taken by the Company are delivering results. The profit after tax showed an increase of 30% y-o-y at Rs.351crs , a historic record performance.”

Speaking on the occasion George Alexander Muthoot, Managing Director said, “Board has decided to make Muthoot Homefin (India) Limited as a wholly owned subsidiary. During the quarter, the housing finance company has grown its loan portfolio to Rs.596crs and continues its stronger focus in the affordable housing segment.  The micro finance subsidiary which has a strong SHG model could increase its loan portfolio, during the quarter, by 11% reaching Rs.628crs.The NBFC in Sri Lanka could increased its loan portfolio by 5%.  First Year Premium collections in the Insurance Broking subsidiary have increased by 60% y-o-y at Rs.16crs.”

Financial Highlights:

     Q1 FY18    Q1 FY17    YoY %    Q4 FY17    QoQ %    FY17
    ( Crs)    ( Crs)    Change    ( Crs)    Change    ( Crs)
Total Income    1399    1301    8%    1713    -18%    5747
Profit Before Tax    552    424    30%    589    -6%    1921
Profit After Tax    351    270    30%    322    9%    1180
Earnings Per Share(Basic) Rs.    8.79    6.77    30%    8.06    9%    29.56
Loan Assets    27852    25860    8%    27278    2%    27278
Branches    4285    4294    0%    4307    -1%    4307

     Q1 FY18    Q1 FY17    Q4FY17    FY17
Return on Average  Loan assets    5.12%    4.30%    4.75%    4.47%
Return on Average Equity    20.98%    18.78%    19.80%    19.44%
Book Value Per Share (Rs. )    171.76    147.51    162.98    162.98

     Q1 FY18    Q1 FY17    Q4FY17    FY17
Capital Adequacy Ratio    25.61%    24.27%    24.88%    24.88%
Share Capital & Reserves (Rs. in Crs)    6868    5892    6516    6516

Business Highlights:
Q1 FY 18   
Q1 FY 17    Growth (YoY)
Branch Network    4285    4294    -0.2%
Gold Loan Outstanding (Rs. in Cr)    27775    25822    8%
Credit Losses (Rs. in Cr)    0.95    1.33    -29%
% of Credit Losses on Gross Loan Asset Under Management     0.003%    0.005%    -40%
Average Gold Loan per Branch(Rs. In Cr)    6.48    6.01    8%
No. of Loan Accounts (in lakh)    75    69    9%
Total Weight of Gold Jewellery pledged (in tonnes)    152    146    4%
Average Loan Ticket Size    37196    37417    -0.6%
No. of employees    23391    23165    1%



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