Muthoot Finance Q2FY24 Financial Results

Kochi, November 15, 2023: 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 September 30, 2023.

Consolidated Results of Muthoot Finance Ltd

Muthoot Finance Ltd Consolidated Loan Assets under management grew 24% YoY to Rs. 79,493 crores as at H1 FY24 as against Rs. 64,356 crores last year. During the quarter, Consolidated Loan Assets under management increased by Rs. 2,694 crores i.e. an increase of 4% QoQ. Consolidated Profit after tax for H1 FY24 stood at Rs. 2,140 crores as against Rs. 1,727 crores last year, an increase of 24% YoY. Consolidated Profit after tax for Q2 FY24 increased by 21% YoY at Rs. 1,095 crores as against Rs. 901 crores in Q1 FY23.

  (Rs. in crores)

Financial PerformanceQ2FY24Q1FY24QoQ %Q2FY23YoY%H1FY24H1FY23YoY %
Group Branch Network6,1695,8975%5,7507%6,1695,7507%
Consolidated Gross Loan Assets of the Group79,49376,7994%64,35624%79,49364,35624%
Consolidated Profit after tax of the Group1,0951,0455%90221%2,1401,72724%
Contribution in the Consolidated Gross Loan Assets of the Group
Muthoot Finance Ltd68,87267,2592%57,13021%68,87257,13021%
Subsidiaries10,6219,54011%7,22647%10,6217,22647%
Contribution in the Consolidated Profit after tax of the Group
Muthoot Finance Ltd9849711%86514%1,9551,66717%
Subsidiaries1117450%37200%18560208%

Mr. George Jacob Muthoot, Chairman, The Muthoot Group said “Muthoot Finance continues its growth journey delivering 24% YoY consolidated loan AUM growth reaching Rs.79,493 crores and 24% YoY growth in consolidated profit after tax of Rs.2,140 crores for first half of FY 2024. This was aided by strong growth in gold loan portfolio of Rs.11,016 crores and  microfinance loan portfolio of Rs.2,736 crores. The increased profits came from gold loan, microfinance, housing finance as well as insurance broking businesses. We are focusing on maintaining strong leadership in gold loan business and a gradual calibrated growth in non-gold loan business comprising of microfinance, housing finance, vehicle loan , personal loans, business loans, small business loans, loan against property and corporate loans. Over the next five years, we are keen on increasing the proportion of non-gold business to 18% from present 13%.   The Indian economy continues to be resilient amidst global challenges and growth is underpinned by strong demand conditions, investment in public infrastructure and a stable financial sector. As a result, we remain optimistic on strong growth momentum for our gold loans and non-gold loan business.”

Mr. George Alexander Muthoot, Managing Director said, Our gold loan assets under management  demonstrated strong growth, led by strong demand trends in both urban  and semi-urban markets. Gold loan AUM grew 20% YoY and by 9% during the 1st half of FY 2024 reaching Rs. 67,517 crores. We also witnessed highest ever gold loan advance to new customers in any first half of a year of Rs. 8109 crores. We have continued our strategic emphasis on disbursements, operational efficiency, and margins, which has resulted in our profits growing 18% YoY at Rs.1,966 crores in the 1st half of FY2024. We strongly believe that the resilience of the Indian economy, its positive outlook coupled with optimistic consumer and business sentiments, will keep the gold loan demand strong, and we retain our guidance of growing our gold loan book by 10-15% in FY24. Further, our non-gold loan businesses in subsidiaries continue to do well, with disbursements during the first half of the year increasing by 76% to Rs.4,294 crores in microfinance business and by 164% at Rs.278crores in housing finance business. Total revenue on insurance broking business during the first half of the year increased by 85% at Rs.47crs. We retired USD denominated Senior Secured Notes amounting to USD550 Million, during 1st half of FY2024 which carried a high cost.   We also opened 331 new branches in first half of the year including in subsidiaries and we will continue to expand our range of financial solutions, enhancing customer engagement, and addressing their diverse financial needs. Our investment in digital strategy is paying off well with nearly 39% of our customer transactions now happening via our various digital channels. ”

Key Subsidiaries – ‘Growth revival continues’

Belstar Microfinance

·         Disbursements improved to ~ Rs. 4,294 crores in H1 FY24; growth of 76% YoY

·         Increase in Profit After Tax  in H1FY24 at Rs. 135 crores vs. Rs. 35 crores in H1 FY23; growth of 284% YoY which surpassed the entire profit of the previous year

·         Increase in loan portfolio of 53% YoY at Rs.7,874 crores in H1 FY24 from Rs. 5,138 crores in H1 FY23

·         Collection Efficiency remaining more than 99% for Regular accounts

·         GNPA at 1.48 % in H1FY24 vs.  8.52% in H1 FY23; NNPA at 0.13% in H1FY24 vs.  2.41% in H1 FY23

·         Opened 164 new branches during Q2 FY24 

Muthoot Homefin

·         Gross Loan AUM at Rs. 1,616 crores in H1 FY24 vs. Rs. 1,420 crores in H1 FY23; growth of ~14% YoY

·         Disbursed Rs. 278 crores in H1 FY24 as compared to Rs. 105 crores in H1 FY23; a growth of 164% YoY

·         Interest income increased at ~18% YoY to Rs. 78 crores in H1 FY24 vs. Rs. 66 crores in H1 FY23 

·         Profit After Tax stood at Rs. 9.09 crores in H1 FY24 vs. Rs. 3.90 crores in H1 FY23; ; growth of ~133% YoY

·         Raised Rs. 150 Crore through private placement of NCD’s at competitive rates

Muthoot Insurance Brokers

·         Profit after tax has increased to Rs. 25 crores in H1 FY24 from Rs. 16 crores in H1 FY23; growth of 60% YoY

·         Increase in total revenue at 85% YoY i.e., Rs. 47 crores in H1 FY24 vs.  Rs. 25 crores in H1 FY23

Muthoot Money

·         Continued decline in NPA through physical collections witnessed consistently throughout the year. GNPA decreased to 1.76% in H1 FY24 from 5.63% in H1 FY23

·         Gross Loan Assets has increased to Rs. 630 crores in Q2 FY24 from Rs. 496 crores in Q1 FY24, up by 27% QoQ

·         Branch network increased to 276 from 185

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 profit after tax of Rs. 1,966 crores in H1 FY24 as against Rs. 1,669 crores in H1 FY23, an increase of 18% YoY. The profit after tax for Q2FY24 stood at Rs.991 crores in as against Rs. 867 crores in Q2 FY23, an increase of 14% YoY. Loan assets stood at Rs. 69,002 crores in H1 FY24 as compared to Rs. 57,230 crores in H1 FY23 , registering a growth of 21% YoY. During H1 FY24, Gold Loan assets increased by Rs. 5,642 crores registering a growth of 9%. During the quarter, Gold Loan assets increased by Rs.1,478 crores.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan AUM stood at Rs. 1,616 crores in H1 FY24 as against Rs. 1,420 crores in H1 FY23, an increase of 14% YoY. During the half year, Loan assets increased by Rs. 178 crores, an increase of 12%. The loan disbursement for H1 FY24 stood at Rs.278 crores as against Rs.105 crores in H1 FY23, a YoY increase of 164%. Total revenue for H1 FY24 increased to Rs. 93 crores as against Rs. 75 crores H1 FY23. Profit after tax stood at Rs. 9 crores in H1 FY24 as against Rs. 4 crores in H1 FY23, an increase of 133% YoY.

M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC, and a subsidiary company where Muthoot Finance holds 59.02% stake. Loan portfolio for H1 FY24 increased to Rs. 7,874 crores as against Rs. 5,138 crores for H1 FY23, an increase of 53% YoY. The loan disbursement for H1 FY24 stood at Rs.4,294 crores as against Rs.2,444 crores in H1 FY23 , a YoY increase of 76%. During the half year,Loan assets increased by Rs. 1681 crores, an increase of 27% .During the quarter, Loan AUM increased by Rs. 866 crores, an increase of 12% QoQ. Profit after tax stood at Rs. 135 crores in H1 FY24, as against Rs. 35 crores in H1 FY23, up 284% YoY. Stage III Asset stood at 1.48% as of September 30, 2023 as compared to 8.52% last year. 

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. 310 crores in H1 FY24. Total revenue for H1 FY24 increased to Rs. 47 crores as against Rs. Rs. 25 crores in H1 FY23, an increase of 85% YoY. It achieved a Profit after tax of Rs. 25 crores in H1 FY24 as against Rs.16crores last year, an increase of 60% YoY.

Asia Asset Finance PLC (AAF) is a listed subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio grew to LKR 1,958 crores in H1FY24 as against LKR 1,930 crores in H1 FY23, an increase of 1.45% YoY. Total revenue for H1 FY24 stood at LKR 346 crores. It achieved a Profit after tax of LKR 13 crores in H1 FY24.

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 H1 FY24 stood at Rs. 630 crores, as against Rs. 234 crores as on H1 FY23. Total revenue for H1 FY24 stood at Rs. 47 crores.

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