Muthoot Finance falls on lower-than-expected Q4 profit
Q4 net profit down 6.4% year-on-year at RS 220 crore due to higher provisioning.
Muthoot Finance has slipped 7% to Rs 147, falling almost 10% from intra-day high, after reporting 6.4% year-on-year (yoy) drop in net profit at Rs 220 crore for the quarter ended March 31, 2013 (Q4) due to higher provisioning. Analyst on an average had expected profit of Rs 278 crore from gold financing company.
“Total income from operations grew 9% at Rs 1,411 crore on yoy basis,” Muthoot Finance said in a statement.
During the quarter under review, the company’s provisions and write offs expenditure increased by over ten-fold at Rs 46.39 crore from Rs 4.67 crore in a year ago quarter.
The company has decided to increase the standard asset provisioning from present Reserve Bank of India (RBI) stipulated norm of 0.25% to 0.30% in the quarter, it added.
The stock opened at Rs 159 and hit a high of Rs 163 on NSE before the announcements of March quarter earnings. A combined 1.2 million shares have changed hands on the counter so far on NSE and BSE.
“Total income from operations grew 9% at Rs 1,411 crore on yoy basis,” Muthoot Finance said in a statement.
During the quarter under review, the company’s provisions and write offs expenditure increased by over ten-fold at Rs 46.39 crore from Rs 4.67 crore in a year ago quarter.
The company has decided to increase the standard asset provisioning from present Reserve Bank of India (RBI) stipulated norm of 0.25% to 0.30% in the quarter, it added.
The stock opened at Rs 159 and hit a high of Rs 163 on NSE before the announcements of March quarter earnings. A combined 1.2 million shares have changed hands on the counter so far on NSE and BSE.