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Home / Companies / Company Results /  Muthoot Finance Q1 results: Net profit grows 14% to 979 cr

Gold financing company Muthoot Finance reported a 14 per cent increase in consolidated net profit for the quarter ended June 30, 2021. The Kerala-based NBFC saw its profit rise to 979 crore during the quarter under review, compared to 858 crore in the year-ago period.

Consolidated loan assets under management of the company increased 25 per cent on annual basis to 58,135 crore in Q1 FY22, compared to 46,501 crore in Q1 FY21. However, consolidated assets under management declined 145 crore on sequential basis.

Interest income in consolidated terms increased to 2,918.31 crore during June quarter, from 2,528.91 crore. Total revenue from operations during the quarter stood at 2,955.83 crore, compared to 2,604.48 in the year-ago period.

In standalone terms, the Muthoot Finance saw net profit rise 16 per cent to 971 crore in the quarter ended June 30, 2021, as against 841 crore in the same quarter last year.

Loan assets stood at 52,614 crore in June quarter this year, compared to 41,296 crore in the corresponding quarter previous year, marking growth of 27 per cent on-year. During the quarter, gold loan assets increased by 142 crore.

“We consciously decided to go slow in terms of non-gold lending business on account of continued uncertainty and emerging uncertain credit behavior. We are redrawing our strategies in terms of non-gold lending business and we are confident to emerge stronger as environment improves. On gold loan front, we are targeting 15 per cent growth in the remaining 3 quarters," said George Alexander Muthoot, Managing Director, Muthoot Finance.

Muthoot Homefin (India), the wholly-owned home loan subsidiary, reported a loan portfolio of 1,705 crore, as against 1,979 crore in the previous year. During Q1 FY22, loan portfolio increased by approximately by 1 crore.

Total revenue for Q1 FY22 stood at 46 crore as against 59 crore in the previous year. It achieved a profit after tax of 0.48 crore in Q1 FY22 as against 0.41 crore in the previous year. Its Stage III Asset on Gross Loan Asset as on June 30, 2021, stood at 5.94 per cent and net of Stage 3 ECL provisions stood at 4.12 per cent.

Belstar Microfinance, a microfinance NBFC where Muthoot Finance holds majority stake, saw its loan portfolio grow 19 per cent on-year in June quarter this year to 3,072 crore as against of 2,575 crore last fiscal. It achieved a profit after tax of 2 crore in Q1 FY22 as against previous year profit after tax of 15 crore. Its Stage III Asset on Gross Loan Asset percentage as on June 30, 2021, stood at 3.67 per cent and net of Stage 3 ECL provisions stood at 1.25 per cent.

Muthoot Insurance Brokers, an direct broker in insurance products, generated a total premium collection amounting to 61 crore in Q1 FY22 as against 44 crore in the previous year. It generated a profit after tax of 4.31 crore in Q1 FY22 as against 4.16 crore in the previous year.

Muthoot Money, the auto loan subsidiary, saw its loan portfolio decline to 333 crore, as against 497 crore last year. Total revenue for Q1 FY22 stood at 11 crore. The company reported a loss of 0.11 crore in Q1 FY22 as against previous year loss of 2.47 crore.

Muthoot Finance shares closed the day at 1,547, down 38.75 points or 2.44 per cent on BSE.

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