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Muthoot Capital profit grows 30 pc to Rs 8.06 crore

Press Trust of India  |  Mumbai 

Riding on a buoyant economy, Muthoot Capital Services' profit grew 30 per cent to Rs 8.06 crore from Rs 6.18 crore a year ago for the quarter ending September 30, 2016.

The company, part of the 129-year-old Muthoot Pappachan Group, has moved to a reduced four-month norm for determining NPAs.

Total income for the period grew 24 per cent to Rs 70.08 crore from Rs 56.50 crore a year ago.

The company disbursed two-wheeler loans of Rs 106 crore in September, crossing the Rs 100-crore mark in a single month for the first time. Total asset under management, including the managed portfolio of Rs 88 crore, reached Rs 1,170 crore at the end of the quarter.

For first half of the current fiscal ending September 2016, the company's profit increased by 26 per cent to Rs 12.54 crore from Rs 9.93 crore a year ago.

"The promising macro indicators and the overall improvement in the sentiments that triggered higher rural demand contributed to our excellent performance. The encouraging festival sales in our core market of Kerala during Onam was another factor for the steady growth that places us comfortably on the course to achieve the annual targets," Muthoot Capital Services' managing director Thomas George Muthoot said in a statement.

"We expect major growth in our disbursement volumes in the North during this Diwali. The relaunch of the Ladies Only scheme and emphasis on Students Only Scheme will boost overall volumes," he said.

The company expects major growth in its disbursement volumes in the North in the remaining period of the fiscal.

"We continued to strengthen our footprints in North Indian states and West Bengal in recent months. However, the actual gains from these markets will get reflected in our numbers only from the second half of this fiscal," chief executive R Manmohanan said.

According to Manmohanan, the company is also looking at additional sources of funding including NCDs and more securitization transactions.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 24 2016. 19:14 IST