Muthoot Finance Apr-Sep profit up 27% to Rs 514 cr

Muthoot Finance Ltd today said posted a 27% growth in its net profit to Rs 514 crore for the half year ended September 30.

The company had a net profit of Rs 406 crore in the same period last fiscal, Chairman M G George Muthoot said.

For the quarter ended September 30, the company's profit rose 25% to Rs 268 crore from Rs 215 crore in the same period last year.

The total income for the half year period grew 29% to Rs 2,610 crore, he added.

The company's board at its meeting here today also decided to raise the public holding of its shares to 25% from the current 19.88% in line with Sebi stipulation of minimum public holding of 25% by May 2014.

The dilution may be through any of the modes approved by Sebi from time to time in one or more tranches or in combination of including institutional private placement subject to shareholders approval, he said.

Due to the negative perception about the sector, while the asset growth decelerated, borrowing cost went up considerably, he said.

The Capital Adequacy Ration rose to 19.95% and loan losses for 6 months was at a negligible level of 0.014% (Rs 3.25 crore) of Retail Loan Portfilio.

The company's Executive Director K Padmakumar said despite the adversities, the firm was hopeful of retaining the profitability metrics through customised portfolio restructuring and geographic expansion to register handsome portfolio growth in the next half year.

The asset base of the company would go up by Rs 500 crore by the end of the current year.