Muthoot Q1 net up 29%

Muthoot Capital Services Limited (MCSL) earned a net profit of Rs 2.15 crore in the quarter ended June 30, 2010, registering a gorwth of 28.97 per cent, against Rs 1.67 crore in the same period of last year.

The Ernakulam-based non-banking financial company's total income from operations increased to Rs 7.25 crore in Q1 from Rs 5.07 crore in the corresponding period last year, registering a growth of 42.92 per cent.

The expenditure on interest grew by 27.99 per cent, from Rs 1.76 crore to Rs 2.26 crore. Due to the increased level of operations, the total expenses increased from Rs 2.55 crore to Rs 3.97 crore in the said quarter, recording an increase of 55.20 per cent. This resulted in a profit before tax of Rs 3.24 crore.

Compared to Rs 2.52 crore in Q1 of last fiscal, the increase in profit before tax is 28.90 per cent. MCSL is diversifying its activities by adding new loan products and expanding its reach. The company plans to launch many loan products this year.

Loans for small and medium enterprises, loans against land property, loans for purchase of used cars, loans against shares, bill discounting, margin funding, etc are some of the products in the pipeline.