Muthoot records 22% dip in Q4 net at Rs 181 cr

Muthoot Finance Limited (MFL) earned a net profit of Rs 181 crore for the quarter ended March 31, 2014 and Rs 780 crore for the year ended as of same date. Profit for the year was down 22%, compared to Rs 1,004 crore in 2012-13. Total income was also down 8% at Rs 4,947 crore as against Rs 5,387 crore in the previous financial year.

Total gold loan outstanding was Rs 21,618 crore, compared to Rs 26,000 crore, recording a fall of 17%. Total weight of gold jewellery pledged was 118 tonnes in 2013-14, compared to 134 tones, recording a dip of 12%. EPS was down 22% at Rs 20.99. The branch network increased to 4,270 from 4,082 as on 31st March, 2013. Total income in Q4 was Rs 1,159 crore.

Addressing a press conference here today M G George Muthoot, chairman, said that despite a turbulent year of adverse regulatory environment and baseless speculations the company delivered extremely good results for the year. George Alexander Muthoot, managing director, said  that considering the fact that regulatory uncertainty has almost come to an end, the company is devoting time for rebuilding the business. The company will be focusing on achieving the March 2013 loan portfolio level of Rs 26,000 crore in the next couple of quarters.

‘Our strong presence in borrower segments like small and medium enterprises, agriculture sector, traders, road transport operators etc constituting more than 70% of the loan portfolio should be a strong enabler for achieving this target and take on further growth in the quarters to come. As a prudent provisioning policy, the company is maintaining a higher standard asset provisioning of 0.45% against regulatory requirement of 0.25%.

The company has already paid interim dividend of 50%  and has recommended final dividend of 10%  aggregating to 60% dividend for the full year, he added.