KOCHI:
Reinforcing its resilient stature as one of the fastest growing NBFCs in India, Muthoot Capital Services Ltd (MCSL), the listed entity of Muthoot Pappachan Group (also known as Muthoot Blue), today announced financial results for the quarter ending September 30, 2019. The company posted a net profit of INR 14crs as against a net profit of INR 21.4crs in the same quarter last year.
As per the unaudited financial results, as approved by the Board of Directors, the total income for the quarter under review touched INR 145crs. The company disbursed two-wheeler loans amounting to INR 463.2crs and had a total disbursement of INR 487.8crs during the quarter. The total AUM (Assets under Management) reached INR 2779.3crs at the end of the quarter, including the assigned
portfolio of INR 107.2crs. For the same quarter last year, the company had a total disbursement of INR 541.8crs and AUM at the end of same quarter last year was at INR 2511.5crs. During the same quarter last year, the Company reported a total revenue of INR 132.1crs.
Commenting on the results, Thomas George Muthoot, Managing Director, Muthoot Capital Services Ltd., said, “With fluctuating GDP growth, speculations on consumer demand and Government’s repetitive initiatives to boost liquidity, FY 2019-20 has been very dynamic so far, for the entire economy. Additionally, continued slump in automotive sales, scattered-turned-incessant monsoon and devastating floods disrupting the lives of more than 1.4 million people, particularly in Kerala, Maharashtra and Karnataka, also posed massive hurdles and has impacted on-ground collections.
While the auto industry is reeling under severe slowdown, the recent intervention by the government should help in reviving the market sentiments. The cost of funds has remained stable in the last quarter but getting the funds from banks has become a lengthy process. We, at MCSL, are happy with our profitability and steady state of the business and with the continuation of our planned spread into newer geographies.
We have been cautious in our lending process and while growth opportunities existed due to many other lenders vacating the market, we have been careful to avoid bad portfolio and over-aggression in these testing times. The Onam festival did see signs of revival in the Kerala market. We expect the on-going festive season will improve sentiments and business volumes”.
Madhu Alexiouse, Chief Operating Officer, Muthoot Capital Services Ltd., said, “MCSL’s stability, amidst tough macro-economic conditions, stands testament to its robust business model and strong fundamentals. We are happy to have remained steady, not only in terms of business performance, but also in managing portfolio health.
Our used-cars business has moved beyond locations in Kerala to major cities in Southern India and Mumbai. MCSL is now active in almost 16 locations that should start contributing significantly to the business, starting from the latter half of H2 FY 2019-20. By the end of the year, we expect to cover about 20 locations across South and West regions.
In addition to this, one of our ambitious projects on consumer durables is in the final stage of implementation with the pilot scheduled to take off in Kerala this month. Other geographies and channels would be added subsequently in the latter half of H2 this year or Q1 next year. As part of the Muthoot Blue Group, MCSL would continue to focus on helping the common man acquire the wherewithal towards a better tomorrow.
With focus on business growth, we have been looking at additional business models beyond our own sales force and our Muthoot Fincorp branches and are confident of starting the same in the next 2 quarters. Emphasis is on being everywhere with minimal operational expenses.”
Talking about the outlook for the coming quarters, Vinod Panicker, Chief Financial Officer, Muthoot Capital Services Ltd., said, “The second quarter of this financial year was very crucial for us especially because of Onam; as about 35% of our AUM, roughly, comes from Kerala. Thankfully, we could see improved sentiments, despite the Kerala floods. As the festivities are yet to continue with Diwali, Christmas etc., we are hopeful of further growth for MCSL.
The liquidity has been very sound and banks and other lenders have continued their support to us during the quarter. Banks / Other investors have shown interest in the pools of the Company and in the process of starting securitisation / assignment transactions with us. The Company is in the process of speaking to investors for raising NCDs of upto Rs 200 crs and hope closure with some of the investors soon.”
