An immediate worry is the impact of the withdrawal of teaser loan schemes on the company’s customer base
Investors are quite disappointed by the June quarter earnings (Q1FY23) of gold loan provider Muthoot Finance Ltd, sending the stock slumping over 12% on Tuesday. Weakness in its core gold loan business, which contributes more than 90% to its overall assets under management (AUM), troubled investors. Gold loan AUM declined 2.4% sequentially in the June quarter. That, along with lower yields because of teaser loans, weighed on overall earnings, dragging consolidated net profit down from a year earlier and sequentially.
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