Muthoot Finance fourth quarter net profit up 22% at Rs 1,024 crore

Muthoot Finance Ltd on Wednesday reported a 22.5 per cent jump in consolidated net profit to Rs 1,023.76 crore for the fourth quarter ended March 2021 due to higher demand for gold loans.

The company had posted a net profit of Rs 835.75 crore during the corresponding January-March period of 2019-20.

Total income rose to Rs 3,118.97 crore in the quarter under review from Rs 2,633.58 crore in the year-ago period, Muthoot Finance said in a regulatory filing.

Of this, the interest income was Rs 3,029.82 crore, up from Rs 2,562.96 crore a year ago.

For the fiscal year 2020-21, the company reported a 20.5 per cent rise in consolidated net profit at Rs 3,818.88 crore as against Rs 3,168.68 crore in the previous fiscal.

Total income increased to Rs 11,566.41 crore from Rs 9,683.98 crore in FY20.

The company's board of directors declared an interim dividend of Rs 20 per share (or 200 per cent) for 2020-21.

"During the last decade since our IPO, we believe that we have been able to create significant value additions for all our stakeholders at different levels.

"Being the market leader in our industry we are resolutely confident of continuing our journey in this direction in future too," Muthoot Finance Chairman George Jacob Muthoot said.

In line with the consistent track record of paying dividend, he said the company has declared a dividend of Rs 20 per share for the financial year 2020-21 involving a total payout of Rs 802 crore in April 2021.

The consolidated loan assets of the group grew by 24 per cent to Rs 58,280 crore in FY'21 as against Rs 46,871 crore last year.

The board approved fund raising to the tune of Rs 5,000 crore by way of public issue of redeemable non-convertible debentures in one or more tranches, it said.

It also cleared the appointment of George Jacob Muthoot as chairman of the company.