Muthoot Capital Q1net up 110%

Muthoot Capital Services Ltd (MCL) today reported 110% growth in net profit at Rs 4.93 crore for the quarter ended June 30, 2012.

The net profit during the same period last year was Rs 2.35 Crore, a press release here said.

MCL, a listed entity of Muthoot Pappachan Group, has registered 81% increase in revenue at Rs 22.17 crore in the June quarter against Rs 12.23 crore during the same period last year, the release said.

During the quarter, the total loan portfolio of the company grew 65% to Rs 329.23 crore from Rs 199.33 crore in the corresponding quarter last year.

At present, the company has more than 1.50 lakh borrowers, mainly under the two-wheeler category.

Shareholders of MCL have also approved a dividend of Rs 3.5 per share (35%) in the Annual General Meeting held today, as recommended earlier by the board.

Thomas George Muthoot, Managing Director, MCL  said: "Despite challenging business scenario-- high interest rate regime, rise in fuel prices, and reduced off take of vehicles -- we have succeeded in reporting robust growth. Introducing cost efficiencies and efficient use of technology has stood by us in good stead."

The Muthoot Pappachan Group is seeing very strong growth in various verticals like vehicle, housing and microfinance, two-wheeler dealerships, hospitality, alternate energy. The company's gold loan business is gearing well to the challenges and the Group as a whole is set to achieve substantial milestones in this fiscal, the company said.