Muthoot Finance declines after Q3 PAT drops 12% YoY to Rs 902 cr

Muthoot Finance fell 2.18% to Rs 1,014.80 after the NBFC's standalone net profit slipped 12.4% to Rs 901.65 crore on 7.1% decrease in total income to Rs 2,667.10 crore in Q3 FY23 over Q3 FY22.

Sequentially, the NBFC's net profit and total income in Q3 FY23 rose 3.97% and 6.53%, respectively.

India's largest gold loan NBFC's consolidated net profit declined 10.8% to Rs 927.71 crore on 4.3% fall in total income to Rs 3,030.47 crore in Q3 FY23 over Q3 FY22.

On quarter on quarter (QoQ) basis, the company's net profit rose 3.58% and total income was up by 6.64% in Q3 FY23.

Consolidated profit before tax was at Rs 1,249.19 crore in the quarter ended 31 December 2022 (up 3.52% QoQ and down 10.6% YoY).

The gold financer's consolidated loan assets under management stood at Rs 65,085 crore in Q3 FY23, rising7% as against Rs 60,896 crore posted in Q3 FY22 and rose 1% QoQ from Rs 64,356 crore reported in Q2 FY23.

George Jacob Muthoot, chairman of Muthoot Group said, We have reported a steady performance during the quarter. The contribution of our subsidiaries to the overall consolidated AUM improved slightly to 12%, 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 NBFC sector has increased the visibility of the gold loans as a safe, secured lending product.

George Alexander Muthoot, managing director, said, Yield on loan portfolio witnessed a QoQ increase of 0.84% consequent to stoppage of very low rate teaser loans. Borrowing cost slightly rose to 8.13% due to the impact of general increase in the interest rates with banks MCLR being constantly revised and fresh NCDs being raised at higher rates. 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%. Return on assets for the quarter improved to 6.27%.

Muthoot Finance is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, education and hospitality. It is India's largest gold loan focussed NBFC.

Powered by Capital Market - Live News