A meeting of the Board of Directors of Muthoot Finance Ltd. was held today to consider and approve the unaudited standalone and consolidated results for the quarter ended June 30, 2023.
Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets Under Management grew 21% YoY to Rs.76,799 crore in Q1FY24 as against Rs 63,444 crore in the same quarter last year. During the quarter, Consolidated Loan Assets Under Management increased by Rs. 5,302 crores which is an increase of 7% QoQ. Consolidated Profit after tax increased by 27% YoY to Rs. 1045 crore as against Rs. 825 crore in the same quarter last year.
George Jacob Muthoot, Chairman, The Muthoot Group said, “Muthoot Finance has continued to deliver a strong performance in Q1 FY24 and achieved Consolidated Loan AUM of Rs.76,799 crores, registering a growth of 21% YoY. Consolidated profit after tax grew by 27% YoY and stood at Rs. 1,045 crores. We achieved highest ever consolidated loan assets growth in any Q1 of Rs.5302 crores. Our subsidiaries Muthoot Homefin, and Belstar Microfinance continue to report strong disbursements and as a result the contribution of our subsidiaries to the overall consolidated loan AUM has increased to 12%. Our vision is to remain a leader in gold loan business and at the same time cater to our large customer base with various loan products to meet their varied requirements. The Indian economy has been resilient so far, driven by strong domestic demand, and pick up in investment activity, signifying its enduring strength. As a result, we continue to forsee improved demand conditions for gold loans, small and personal and business finance loans in the current financial year.”
George Alexander Muthoot, Managing Director said, “Our Gold loan AUM continued to grow at a robust pace of 18% YoY and 7% QoQ and stood at Rs. 66039 crores in Q1 FY24. Our strategic focus on disbursements, operational efficiency, and margins has led to a profit after tax of Rs. 975crores in Q1 FY 24, and profits grew 22% YoY. A resilient Indian economy, improved demand conditions, make us optimistic of growing our gold loan book by 10-15% in FY24.
With continued focus on loan disbursements and recovery efforts, we are confident of maintaining our NIMs around 11% . Our non-gold loan segments continue to witness improved business environment, and our new products – smallbusiness loans and micro-personal loans have reported good traction this quarter.
Standalone Results of Muthoot Finance Ltd and its subsidiaries
Muthoot Finance Ltd (MFIN), India’s largest gold financing company in terms of loan portfolio, registered net profit of Rs. 975 crores in Q1FY24 as against Rs. 802 crores in Q1FY23, an increase of 22% YoY. Loan assets stood at Rs. 67,639 crores as compared to Rs. 56,689 crores in the same quarter last year, registering a growth of 19% YoY. During the quarter, Loan assets increased by Rs. 4,429 crores registering a growth of 7% QoQ.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan AUM stood at Rs.1,501 crores in Q1 FY24 as against Rs. 1,475 crores in the same quarter last year. During the quarter, Loan assets increased by Rs. 63 crores, an increase of 4% QoQ. Total revenue for Q1FY24 stood at Rs. 44 crores, up 16% YoY. Profit after tax stood at Rs. 4.72 crores in Q1FY24 as against Rs.1.45 crores in the same quarter last year, increased by 226% YoY. Stage III Asset as percentage of Gross Loan Asset stood at 3.97% as on June 30, 2023 as compared to 4.01% as on March 31, 2023.
M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC, and a subsidiary company where Muthoot Finance holds 56.97% stake. Loan AUM for Q1FY24 stood at Rs.7,008 crores, as against Rs.4,696 crores in Q1FY23, an increase of 49% YoY. During the quarter, Loan AUM increased by Rs. 816 crores. an increase of 13% QoQ Profit after tax stood at Rs. 52 crores in Q1FY24, as against Rs. 14 crores in the same quarter last year, up 271% YoY.
Stage III Asset as percentage of Gross Loan Asset stood at 1.62% as of June 30, 2023 as compared to 2.43% as of March 31, 2023.
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. 148 crores in Q1FY24 as against Rs. 131 crores in same quarter last year. Profit after Tax stood at Rs. 10 crores in Q1FY24, as against Rs. 7 crores in the same quarter last year.
Asia Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio grew to LKR 2010 crores during Q1FY24, as against LKR 1762 crores in same quarter last year, an increase of 14% YoY. Total revenue for Q1FY24 stood at LKR 172 crores, as against LKR 116 crores during same quarter last year.
Profit after tax stood at LKR 6 crores in Q1FY24, as against profit of LKR 5 crores in the same quarter last year. 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 gold loans and loans for commercial vehicles and equipment. Loan portfolio for Q1FY24 stood at Rs.496 crores, as against Rs. 198 crores during same quarter last year. Total revenue for Q1FY24 stood at Rs. 21 crores.
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 a Direct Broker from IRDA since 2013. It is actively distributing both life and non-life insurance products of various insurance companies. During Q1FY24, it has insured more than 904,700 lives with a first year premium collection of Rs. 114 crores under traditional, term and health products. The same was more than 11,74,000 lives with a first year premium collection of Rs. 101 crores in Q1FY23.