Muthoot Finance consolidated net dips 11% YoY to Rs 934 crore in Q3

Total income declines 4% to Rs 3,030 crore, loan assets grow 7% tp Rs 65,000 cr

Muthoot Finance (MFIN), India’s largest gold financing company in terms of loan portfolio, has posted an 11 per cent dip in consolidated net profit during the third quarter of 2022-23 to Rs 934 crore. The firm had posted a net profit of Rs 1,044 crore a year ago.

The company’s total income for the October to December quarter of 2022-23 declined by 4 per cent to Rs 3,030 crore, from Rs 3,168 crore during the same period in 2021-22. The firm's loan assets under management grew 7 per cent to Rs 65,085 crore, from Rs 60,896 crore a year ago.

“The contribution of our subsidiaries to the overall consolidated AUM improved slightly to 12 per cent, and going ahead we expect the share of non-gold AUM to gradually rise. It is to be noted that despite the challenges, efforts by the NBFC sector have increased the visibility of gold loans as a safe, secured lending product. We are hopeful that our expertise in the product would help us capitalise on this positively in the coming quarters,” said George Jacob Muthoot, Chairman, Muthoot Group.

“Muthoot Finance registered a YoY growth of six per cent in loan assets and marginal quarter-on-quarter growth in gold loans of less than one per cent. The iield on the loan portfolio grew 0.84 per cent QoQ, consequent to the stoppage of low-rate teaser loans. Borrowing cost slightly rose to 8.13 per cent due to the impact of general increase in the interest rates, with bank MCLR being constantly revised and fresh NCDs being raised at higher rates," said George Alexander Muthoot, Managing Director of the company.

"Our continued focus on loan disbursements, recovery efforts and keeping our borrowing costs under check could enable us to maintain our NIMs in the range of 11-12 per cent. Return on assets for the quarter improved to 6.27 per cent,” he added.