KOCHI:
Muthoot Capital Services Ltd (MCSL), one of India’s fastest growing NBFCs and the listed entity of Muthoot Pappachan Group (also known as Muthoot Blue) today announced results for the quarter ending June 30, 2019.
Standing testament to its robust business model and a reflection of its solid strategy, the company posted a net profit of INR 13.6 crores as against a net profit of Rs 17.5 crores in the same quarter last year, despite turbulences looming in the NBFC sector, throughout FY19 which has continued into the current financial year. The current quarter profit has been lower on account of the company writing down deferred tax assets recognised as at 01.04.19, on account of the deferred tax and current tax being worked out in accordance with the provisions of the Finance (No 2) Bill, 2019 which has been substantively enacted as on date, which impacted the company to the extent of Rs 5.40 crs.
During the Quarter the Company moved to IND AS, as against IGAAP in the previous financial year. Hence all the reported figures and the corresponding figures have been stated based on the new standards.
As per the unaudited financial results, as approved by the Board of Directors, the total income for the quarter under review touched INR 144 crores. The company disbursed vehicle loans accounting to INR 451.3 crores and had a total disbursement of INR 486.9 crores during the quarter. The total AUM (Assets under Management) reached INR 2760.4 crores at the end of the quarter, including the assigned portfolio of INR 154.9 crores. For the same quarter last year the company had a total disbursement of Rs 485.5 crores and an AUM of RS 2,366.3 crores. During the same quarter last year the Company reported a total Revenue of Rs 114.1 crores.
Commenting on the results, Thomas George Muthoot, Managing Director, Muthoot Capital Services Limited said, “FY19 was indeed challenging for the entire NBFC sector. The aftermath of liquidity crisis and the continued & steep slide in automotive sales posed tough times for the sector and many a large NBFCs reeled under the pressure. We at MCSL are happy to have maintained stable market share. With the festive season coming in the second quarter, in fact, we are anticipating significant opportunities for the business, ahead. The Union Budget 2019 has announced major thrust on Infrastructure, Rural India, Skill Development & Jobs-creation and other areas which, as the same are implemented on ground, are likely to spur demand for two-wheelers in particular.”
Allowing some peek into Muthoot Capital’s strategic diversification, Thomas George Muthoot updated about Co’s Used-Car Financing business successfully completing it pilot phase and moving as planned, into full roll-out stage. Muthoot, who is one of the promoter-Director of the Muthoot Blue Group, as well, also revealed Co’s plan to kickstart the pilot for Consumer-Durables Financing business, stating that, “Muthoot Blue’s core ethos is Empowering Human Ambition, wherein it’s our mission to help fulfil the needs of the common man and fuel his determined journey towards fulfilling his dreams and hence, whether its current business of two-wheeler financing or new businesses of Used-Car and Consumer-Durables Financing, as people at the lower ends of socio- economic strata progress, slowly but surely, Muthoot Capital too, will continue its growth momentum.”
Madhu Alexiouse, Chief Operating Officer, Muthoot Capital Services Ltd. said, “MCSL’s business strategy has always been to embrace stability, for a steady growth trajectory and not overnight spike in numbers. We have maintained a steady speed and poised riding and hence have been able to ride rather smoothly over even monstrous potholes & steep speed-brakers of the market. While several other star-players have got bruised along the way. As a long term and a player with proven strategic edge, MCSL would continue to grow; with steady pace & cautious approach, as always. We would like to Conserve Cash and focus on Portfolio Quality, which is both Customer Profile, as well as, focus on Collections. As part of the Muthoot Blue Group, MCSL’s focus has been on helping the common man acquire the wherewithal towards a better tomorrow for herself and her family. The focus is not only in the line with the Group stated purpose towards real financial inclusion but has also helped us protect company’s fiscal health and business momentum from the vicissitudes of the market. Moreover, with close to 3600 branches across India, our Group’s flagship company and a leading Retail-Lending NBFC, Muthoot Fincorp gives us unique & powerful edge & strength of vast distribution network along with our presence at automotive-dealer points. In fact, MCSL has the uniquely wonderful opportunity of around 100,000 customers transacting with various Group companies including at the close to 3600 Muthoot Fincorp branches and of a massive pool of combined active customer base of around Five Million loyal customers.”
Talking about the outlook for the coming quarters, Vinod Panicker, Chief Financial Officer, Muthoot Capital Services Ltd., said “Implementation and the effect of various announcements in the Union Budget relevant for our market and the our customer profile, the delayed but now near normal monsoon and also the onset of the a long festive season augurs really well for MCSL, for the rest of the FY ahead.”
