Muthoot Finance hits record high on strong Q1 earnings

The stock surged nearly 7% to Rs 340, also its record high on the BSE in intra-day trade.

Muthoot Finance has surged nearly 7% to Rs 340, also its record high on the BSE in intra-day trade, after the company reported 48% increase in net profit at Rs 270 crore for the quarter ended June 2016 (Q1FY17) compared with Rs 183 crore in the same quarter last year.

Total income during the quarter under review rose 14% to Rs 1,301 crore as against Rs 1,143 crore in the year-ago quarter.

Muthoot Finance said, the assets under management (AUM) increased by 6% at Rs 25,860 crore at the end of Q1FY17 as against Rs 24,409 crore in Q1FY16.

Commenting on the results M G George Muthoot, Chairman said, “the current excellent performance could be attributed to total revamp in collection mechanism , structural changes made in operations and improved customer sentiment due to better practices adopted by the Company.”

During the quarter we could reduce the auctions drastically which is a step in the right direction. We feel that , with economic activities expected to pick up on account of good monsoons, we should expect growth momentum to continue, he adds.

At 10:20 AM, the stock was up 3% at Rs 329 on the BSE compared to 0.26% fall in the S&P BSE Sensex. A combined 1.26 million equity shares changed hands on the counter on the BSE and NSE.