Home Finance Muthoot Finance Q4 profit up 22% to Rs 996 crore

Muthoot Finance Q4 profit up 22% to Rs 996 crore

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MUMBAI: Gold Loan Finance Company (MFIN) on Wednesday reported a 22 per cent jump in standalone profit after tax at Rs 996 crore for the three months till March 2021.

The company had posted a standalone profit after tax of Rs 815 crore in the year-ago period.

For the full year, standalone net profit jumped 23 per cent to Rs 3,722 crore as against Rs 3,018 crore in FY15.

“We have seen good business growth during the last year, especially in the second and third quarters. After the pandemic, there was a lot of demand for gold loans.

“Everyone wanted to restart their business and wanted quick money, which is why the demand for gold loans increased,” said its managing director George Alexander Muthoot said.

The lender was able to grow its asset under management (AUM) gold loan segment by 27 per cent in FY21 as compared to a growth of 22 per cent in the previous year.

The gold loan under management stood at Rs 51,926.6 crore at the end of March 2021. During the fourth quarter of FY21, gold loan assets increased by Rs 2,304 crore.

Consolidated profit after tax grew 21 per cent to Rs 3,819 crore in FY21 as against Rs 3,169 crore last year.

The group’s consolidated debt assets grew 24 per cent to Rs 58,280 crore as against Rs 46,871 crore in FY15.

Total income during the quarter under review grew by 18 per cent to Rs 2,828 crore from Rs 2,403 crore earlier.

Its gross NPAs or Stage-3 assets on gross loan assets rose to 0.88 per cent as against 2.16 per cent.

The expected debt loss (ECL) provision as a percentage of gross debt assets stood at 1.19 per cent at the end of March 2021.

Capital Adequacy Ratio increased from 25.47 per cent to 27.44 per cent.

Muthoot said the first 15 days of April were good for business but after that the closure of branches in May hit the demand.

He expects demand to improve by the end of this month.

“Business will resume by the end of this month. When the business starts, people will need money and of course there will be a boom in gold loans like last year.

Muthoot expects 15 per cent growth in AUM in FY 2021-22.

“Normally, we give guidance of 15 per cent, but in the last three years we have been able to (grow) more than that. This year, our guidance is also 15 per cent, but will go beyond that,” he said.

Housing Finance Subsidiary of MFIN Muthoot Homfin (India) Limited (MHIL) reported a decline in net profit of Rs 13 crore in FY21 as against Rs 32 crore in the previous year.

Its Stage-3 assets on gross loan assets stood at 4 per cent and Stage-3 ECL provisions at 2.78 per cent as on March 31, 2021.

Its microfinance arm Belstar Microfinance reported a profit after tax of Rs 47 crore in FY21 as against Rs 99 crore in the previous year.

On Wednesday, the company’s stock closed at Rs 1,414, up 8.06 per cent on the BSE.

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