Muthoot Capital Services Ltd Registers Record Half Yearly Profits

KOCHI:
Riding on the overall buoyancy in the economy, robust 2-wheeler sales, higher geographical spread and various innovative strategies, the Muthoot Capital Services Limited, part of the 130-years- old Muthoot Pappachan Group, reported Rs 16.46 crores profit for the first half of FY 2018, registering the highest half year profit so far for the two-wheeler financing major.
According to the unaudited financial results, as approved by Board of Directors here today, the profit after tax for the quarter ending September 30, 2017 rose by 28.66 % over the corresponding quarter of the previous year, from Rs 8.06 crores to Rs 10.37 crores. The total income for the quarter under review touched Rs 94.86 crore, against Rs 70.08 crores for the corresponding quarter of the previous year, showing a growth of 35.36%. The company disbursed two-wheeler loans of Rs. 449.95 crores during the quarter ending September 2017 (Rs.273.30 for the corresponding quarter previous year) and a total disbursement of Rs.477.27 v/s Rs.304.61 for the corresponding quarter in the previous year. The total AUM (Asset under Management), reached Rs 1748.65 crore at the end of the quarter.
Considering the cumulative performance for the two quarters in the half-year ended 30 th September 2017, the Company achieved a total income of Rs 174.61 crores compared to Rs 134.44 crores for the corresponding period last year, recording a growth of 29.88%. The finance expenses increased by 13.12% from Rs 51.61 crores to Rs 58.38 crores during the period. The overall Net Interest Income (NII) went up from Rs 82.72 crores to Rs 116.23 crores. The profit before tax for the half year recorded a growth of 30.68% to Rs 25.26 crores compared to Rs 19.33 crores for the corresponding half year last year. The Company recorded net profit amounting to Rs 16.46 crores for the half year ended 30 th September 2017, which is 31.26% higher compared to Rs 12.54 crores for the corresponding period last year.
“The promising macro indicators and the overall improvement in the sentiments that triggered higher rural demand contributed to our excellent performance. The encouraging festival sales in our core markets was another factor for the steady growth that places us comfortably on the course to achieve the annual targets” said Thomas George Muthoot, Managing Director, Muthoot Capital Services Ltd.
“The technology driven sales process, especially launch of Mobile based application processing has led to faster TAT enhancing the productivity of the Counter Sales Executives, besides reducing manual intervention in the processes. We are optimistic of a higher growth over the next few years. We are also looking at additional sources of funding including NCDs and more securitization transactions,” said Madhu Alexiouse, Chief Operating Officer, Muthoot Capital Services Ltd.