You are here: HomeBanking & FinanceMuthoot Finance registers 14% increase in net profit

Muthoot Finance registers 14% increase in net profit Featured

Published in Banking & Finance Friday, 06 August 2021 19:24

   





Consolidated Loan Assets Under Management increased by 25% YoY at Rs.58,135crs
Consolidated Profit after Tax increased by 14% YoY at Rs.979crs
Standalone Loan Assets Under Management increased by 27% YoY at Rs.52,614crs
Standalone Profit after tax increased by 16% YoY at Rs.971crs

Kochi: Muthoot Fiance  registered  14% hike in net profit  to Rs 979 crores during the first quarter of the current fiscal.
Commenting on the results Mr. George Jacob Muthoot, Chairman stated, “As second wave of pandemic hit across the country in the first quarter, amidst selective lock downs at state and local level , we took all efforts to open our branches and maintain our services to the extent possible. Thanks to all our 25000+ workforce, we were able to maintain our Consolidated Loan AUM on QoQ basis inspite of the tough environment. However, compared to last year, Loan assets grew by 25% at Rs.58,135crs. Profit after tax for the quarter increased by 14% at Rs.979crs compared to last year.”

Speaking on the occasion Mr. George Alexander Muthoot, Managing Director said, “We consciously decided to go slow in terms of non-gold lending business on account of continued uncertainty and emerging uncertain credit behavior. We are redrawing our strategies in terms of non-gold lending business and we are confident to emerge stronger as environment improves.  On Gold Loan front, we are targeting 15% growth in the remaining 3 quarters.”

Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets under management achieved a YoY increase of 25% atRs. 58,135crs as at Q1 FY22 as against last year of Rs. 46,501crs. During the quarter, Consolidated Loan Assets under management decreased by Rs. 145crs. Consolidated Profit after tax achieved a YOY increase of 14% of Rs. 979crs as against last year ofRs.858crs.

     Q1 FY22    Q4 FY21    QoQ %    Q1 FY21    YoY %    FY21
Group Branch Network    5,443    5,451    (0.15)%    5,330    2%    5,451
Consolidated Gross Loan Assets of the Group (Rs. In crores)    58,135    58,280    (0.25)%    46,501    25%    58,280
Consolidated Profit of the Group (Rs. In crores)    979    1,024    (4)%    858    14%    3,819
Contribution in the Consolidated Gross Loan Assets of the Group
Muthoot Finance Ltd    52,493    52,394    (0.19)%    40,906    28%    52,394
Subsidiaries    5,642    5,886    (4)%    5,595    1%    5,886
Contribution in the Consolidated Profit of the Group
Muthoot Finance Ltd    969    991    (2)%    835    16%    3,700
Subsidiaries    10    33    (70)%    23    (57)%    119

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 16%, at Rs. 971crs for Q1FY22 as against Rs.841crs for Q1FY21. Loan Assets stood at Rs. 52,614crs compared to Rs. 41,296crs previous year, Y-o-Y growth of 27%. During the quarter, gold loan assets increased by Rs. 142crs.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, has a loan portfolio ofRs.1705crs as against previous year of Rs.1979crs.During Q1 FY22, loan portfolio increased by approximately  byRs.1crs. Total revenue for Q1 FY22stood at Rs.46crs as against Rs.59crs in the previous year.It achieved a profit after tax of Rs.0.48crs in Q1FY22 as against Rs.0.41crs in the previous year. Its Stage III Asset on Gross Loan Asset as on June 30, 2021 stood at 5.94% and net of Stage 3 ECL provisions stood at 4.12%.
M/s. BelstarMicrofinance Limited (BML), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs.3,072crs as against last year of Rs. 2,575crs, a YoY increase of  19%. It achieved a profit after tax of Rs.2crs in Q1FY22 as against previous year profit after tax of Rs.15crs. Its Stage III Asset on Gross Loan Asset % as on June 30, 2021 stood at  3.67%and net of Stage 3 ECL provisions stood at 1.25%.

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.61crsin Q1 FY22 as against Rs.44crsin the previous year. It generated a Profit after Tax of Rs.4.31crsin Q1 FY22as against Rs. 4.16crsin the previous year.

The Sri Lankan subsidiary-Asia Asset Finance PLC(AAF) where Muthoot Finance holds72.92% stake, increased its loan portfolio to LKR 1429crs as against LKR 1348crslast year, a YoY increase of 6%. During Q1 FY22, loan portfolio increased by LKR 29crs.Total revenue for Q1 FY22 stood at LKR 68crs as against previous year total revenue of LKR 70crs. It generated a Profit after Tax of LKR.0.97crs in Q1 FY22 as againstas against previous year loss of   LKR 1.69crs ,a YoY increase of 157%.

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 Cars, Two wheelers, Commercial Vehicles and Equipments. Recently, As on June 30,2021,its loan portfolio stood at Rs.333crs, as against last year of Rs.497crs.Total revenue for Q1 FY22 stood at Rs.11crs.It incurred  a loss  of Rs0.11crs in Q1 FY 22 as against previous year loss of  2.47crs. Its Stage III Asset on Gross Loan Asset % as on June 30, 2021 stood at 18.85% and net of Stage 3 ECL provisions stood at 14.28%.



Financial Highlights (MFIN):

     Q1 FY22    Q4 FY21    QoQ %    Q1 FY21    YoY %
     (Rs.in Crs)    (Rs.in Crs)    Change    (Rs.in Crs)    Change
Total Income    2,715    2,828    (4)%              2,385     14%
Profit Before Tax    1,300    1,350    (4)%              1,125     16%
Profit After Tax    971    996    (3)%                 841     16%
Earnings Per Share(Basic) Rs.    24.21    24.81    (2)%              20.96     16%
Loan Assets    52,614    52,622    (0.02)%           41,296     27%
Branches    4,625    4,632    (0.15)%              4,573     1%


Particular    Q1 FY22    Q4 FY21    Q1 FY21
Return on Average  Loan assets    7.38%    7.73%    8.10%
Return on Average Equity    25.37%    27.08%    28.16%
Book Value Per Share (Rs.)    383.33    379.70    306.99

Particular    Q1 FY22    Q4 FY21    Q1 FY21
Capital Adequacy Ratio    27.32    27.39    26.30
Share Capital & Reserves (Rs. in Crs)    15,384    15,239    12316

Business Highlights (MFIN):
Particular    Q1 FY22    Q1 FY21    Growth (YoY)
Branch Network    4,625    4,573    1%
Gold Loan Outstanding (Rs. in Cr)    52,069    40,495    29%
Credit Losses (Rs. in Cr)    9    3    200%
% of Credit Losses on Gross Loan Asset Under Management     0.017%    0.007%    143%
Average Gold Loan per Branch (Rs. In Cr)    11.26    8.86    27%
No. of Loan Accounts (in lakh)    85    76    12%
Total Weight of Gold Jewellery pledged (in tonnes)    171    165    4%
Average Loan Ticket Size    61,080    53,426    14%
No. of employees    25,397    25,430    (0.13)%



Subsidiaries:

About Muthoot Insurance Brokers Pvt Limited:
MIBPL is a wholly owned subsidiary of Muthoot Finance Ltd. It is an unlisted private limited company holding a license to act as Direct Broker from IRDA since 2013.It is actively distributing both life and non-life insurance products of various insurance companies. During Q1 FY22, it has insured more than 343,500lives with a first year premium collection of Rs. 305 million under Traditional, Term and Health products. The same was  135,000lives with a first year premium collection of Rs. 182Million in Q1 FY21 respectively.

Key Business Parameters

Particulars    Q1 FY 22    Q4 FY 21    Q1 FY 21    FY 21
Total Premium Collection (Rs. In millions)    606    1,479    443    4,055
No. of Policies    3,53,967    12,24,866    1,42,421    32,23,737
Total Revenue (Rs. In millions)    69    142    64    467
Profit After Tax (Rs. In millions)    43    97    42    316

About Muthoot Homefin (India) Limited:
MHIL is a Housing Finance Company registered with The National Housing Bank (NHB). It is a wholly owned subsidiary of Muthoot Finance Limited.  
MHIL’s prime goal is to contribute towards financial inclusion of LMI families by opening doors of formal housing finance to them. Its focus is on extending Affordable Housing Finance. MHIL would be concentrating primarily on retail housing loans in the initial stages. It operates on a ‘Hub and Spoke’ model, with the centralized processing based out of Corporate Office at Mumbai. MHIL has operations in 14 states and 2 Union territories - Maharashtra (including Mumbai), Gujarat, Rajasthan, Madhya Pradesh,Kerala, Karnataka, Telangana, Andhra Pradesh, Haryana, Chandigarh, Uttar Pradesh,Chattisgarh, Punjab, Tamil Nadu, Delhi and Pondicherry.

MHIL has short term debt rating of ‘A1+’ for its Commercial Paper programme which indicates “Very strong degree of safety regarding timely payment of financial obligations and carry lowest credit risk” from ICRA Ltd and CARERatings Ltd.

MHIL has long term debt rating of CRISIL AA+/Stable for its Bank Limits and Non-Convertible Debentures which indicates “High degree of safety with regard to timely servicing of financial obligations and carry very low credit risk”.


Key Financial Parameters            (Rs. In Millions)

Particulars    Q1 FY 22     Q4 FY 21    Q1 FY 21    FY 21
No. of branches    108    108    107    108
No. of Sales Offices    108    108    107    108
No. of Employees    260    301    344    301
                    
Gross Loan AUM     17,048    17,042    19,787    17,042
               
Capital Adequacy Ratio    53%    50%    47%    50%
               
Total Revenue     460    742    588    2,409
Total Expense     453    675    582    2,240
Profit Before Tax     7    67    6    169
Profit After Tax     5    50    4    126
Shareholder’s Funds     4,392    4,387    4,264    4,387
Total Outside Liabilities     11,014    12,397    15,062    12,397
Total Assets     15,406    16,784    19,326    16,784
               
Stage III Loan Assets    1,012    681    337    681
% Stage III asset on Gross Loan Assets (AUM)    5.94%    4.00%    1.70%    4.00%
Stage III ECL Provision    309    207    241    207
ECL Provision    361    261    309    261
ECL Provision as a % of Gross Loan Assets (AUM)    2.12%    1.53%    1.56%    1.53%


About BelstarMicrofinance Limited (BML):

BML was incorporated on January 1988 at   Bangalore and the Company was registered with the RBI in March 2001 as a Non- Banking Finance Company. The Company was reclassified as “NBFC-MFI” by RBI effective from 11th December 2013. Muthoot Finance holds  70.01% of equity share capital of BML. BML was acquired by the ‘Hand in Hand’ group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by ‘Hand in Hand’s’ Self Help Group (SHG) program. The Company commenced its first lending operations at Haveri District of Karnataka in March 2009 to 3 SHGs, 22 members for INR 0.2million.

In the last twelve years of its operations, BML primarily relied on taking over the existing groups formed by Hand in Hand India. BML predominantly follows the SHG model of lending. Effective January 2015, BML started working in JLG model of lending in Pune district, Maharashtra.

As of June 30, 2021, BML operations are spread over 18states and 1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Harayana, Punjab, Jharkhand, Uttarakhand, West Bengal, Tripura and Pondicherry). It has  651branches, with  170controlling regional offices and employing  4,651 staff. Its gross loan portfolio has grown from INR  0.20million in March 2009 to INR  30,721 million in June 2021. For Q1 FY 22, its Net Profit after Tax was Rs.  20million and had a net worth of Rs.5,431million.

Key Financial Parameters                                     (Rs. In Millions)

Particulars    Q1 FY22    Q4 FY21    Q1 FY21    FY 21
No. of branches    651    649    603    649
No. of Employees    4,651    4,562    4,197    4,562
               
Gross Loan AUM     30,721    32,999    25,754    32,999
               
Capital Adequacy Ratio    23%    22%    26%    22%
               
Total Revenue     1,635    1,641    1,171    5,532
Total Expense     1,616    1,511    983    4,962
Profit Before Tax     19    130    188    570
Profit After Tax     20    117    145    467
               
Shareholder’s Funds    5,431    5,417    5,131    5,417
Total Outside Liabilities     25,832    29,256    23,454    29,256
Total Assets     31,263    34,673    28,585    34,673
               
Stage III Loan Assets    1,126    783    287    783
% Stage III asset on Gross Loan Assets (AUM)    3.67%    2.37%    1.11%    2.37%
Stage III ECL Provision    742    618    284    618
ECL Provision    1,273    980    418    980
ECL Provision as a % of Gross Loan Assets    4.14%    2.97%    1.62%    2.97%


About Asia Asset Finance PLC, Sri Lanka:

Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of Muthoot Finance Ltd on December 31, 2014.  The company formerly known as Finance and Land Sales has been in operation for over 49 years, evolving to serve the growing needs of people of Sri Lanka.

As on June 30, 2021, total holding in AAF by Muthoot Finance stood at 91million equity shares representing  72.92% of their total capital. AAF is a Registered Financial Company based in Sri Lanka a fully licensed, deposit-taking institution registered with the Central Bank of Sri Lanka and listed in the Colombo Stock Exchange.

AAF is in lending business since 1970.  At present the company is involved in Retail Finance, Hire Purchase & Business Loans and has 48branches across Sri Lanka. It has total staff strength of  425currently. In 2015, it entered the space of Gold Loans with assistance of Muthoot Finance.

Key Financial Parameters(LKR in millions)

Particulars    Q1 FY22    Q4 FY 21    Q1 FY 21    FY 21
LKR/INR    0.3722875    0.3677855    0.40386    0.3677855


               
No. of Branches    48    48    29    48
No. of Employees    425    427    461    427
               
Gross Loan AUM    14,289    14,002    13,481    14,002
               
Capital Adequacy Ratio    14%    17%    16%    17%
               
Total Revenue     678    785    697    2,952
Total Expenses    650    743    714    2,865
Profit Before Tax     28    42    (17)    87
Profit After Tax     10    28    (17)    45
               
Shareholder’s Funds    2,232    2,222    2,155    2,222
Total Outside Liabilities     13,829    13,128    12,502    13,128
Total Assets    16,061    15,350    14,657    15,350

About Muthoot Money Limited:

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 Cars, Two Wheelers, Commercial Vehicles and Equipments.. The operations are now centered in Hyderabad. CRISIL Ltd assigned long term debt rating of AA/Stable for its bank limits

As on June 30, 2021 it has a total loan portfolio of Rs.3,326Million.

Key Financial Parameters:                        (Rs in millions)

Particulars    Q1 FY 22    Q4 FY 21    Q1 FY 21    FY 21
No. of branches    11    14    18    14
No. of employees    143    188    245    188
                
Gross Loan AUM    3,326    3,668    4,966    3,668
                
Capital Adequacy Ratio (%)    33%    29%    21%    29%
                
Total Revenue    106    157    198    697
Total Expense    108    148    193    656
Profit Before Tax    (2)    9    5    41
Profit After Tax    (1)    4    (25)    37
               
Stage III Loan Assets    627    314    180    314
% Stage III asset on Gross Loan Asset (AUM)    18.85%    8.56%    3.62%    8.56%
Stage III ECL Provision    152    129    170    129
ECL Provision    189    172    192    172
ECL Provision as a % of Gross Loan Asset (AUM)    5.68%    4.69%    3.87%    4.69%
                
Shareholders’ Funds    1,099    1,099    1,037    1,099
Total Outside Liabilities    2,207    2,789    4,161    2,789
Total Assets    3,306    3,888    5,198    3,888




Leave a comment

Magazine

Business Digest Onam 2020

Current Issue

Previous Issues