Muthoot Finance Q1 net up 30% to Rs 351 cr, loan assets grow 8%

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NBFC firm Muthoot Finance on Tuesday reported an increase of 30 per cent in net profit at Rs 351 crore for the first quarter ended June 30, 2017.

The company's net profit stood at Rs 270 crore in the April-June quarter of previous fiscal.

Muthoot Finance Chairman M G George Muthoot said the net profit growth of 30 per cent is a historic record performance for the company.

Total income was up 8 per cent to Rs 1,399 crore during the reported quarter, as against Rs 1,301 crore in the same period year earlier, Muthoot Finance said in a statement.

Loan assets grew by 8 per cent to Rs 27,852 crore as on June 30, 2017 compared with Rs 25,860 crore in the year-ago period.

"Company could achieve a growth in its loan assets during the quarter even in the backdrop of seemingly challenging external environment which shows that initiatives taken by the company are delivering results," George Muthoot said.

The gold financier based out of Kochi said its board has decided to acquire the remaining 11.73 per cent holding with other shareholders in Muthoot Homefin (India) at an aggregate price of Rs 38.72 crore.

With this acquisition , MHIL will become a wholly-owned subsidiary.

"Further Board has decided to infuse Rs 100 crore in MHIL as equity share capital," the company said.

Stock of the company closed 1.42 per cent up at Rs 479.60 on BSE.