Muthoot Finance gains after Q3 PAT rises 17% to Rs 1,007 cr

Muthoot Finance rose 1.53% to Rs 1193.35 after the company's consolidated net profit jumped 16.90% to Rs 1,006.63 crore on 15.93% increase in total revenue from operations at Rs 3,000.78 crore in Q3 December 2020 over Q3 December 2019.

Profit before tax (PBT) soared 17.15% to Rs 1,350.56 crore in Q3 December 2020 as against Rs 1,152.83 crore in Q3 December 2019. Current tax expense for the quarter soared 30.31% to Rs 371.48 crore as against Rs 285.07 crore in Q3 December 2019. The Q3 result was declared during trading hours today, 9 February 2021.

Consolidated gross loan assets of the group grew 7% to Rs 55,800 crore in Q3 FY21 from Rs 52,286 crore in Q2 FY21. Group branch network rose 1% to 5417 units in Q3 FY21 from 5381 units in Q2 FY21.

On a standalone basis, Muthoot Finance (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 24%, to Rs 2,726 crore for 9MFY21 as against Rs 2,203 crore in the previous year. Loan assets stood at Rs 50,391 crore as on 31 December 2020 as against Rs 38,948 crore as on 31 December 2019, Y-o-Y growth of 31%. During the quarter, gold loan assets increased by Rs 3,389 crore.

Commenting on the Q3 results, M G George Muthoot, the chairman of Muthoot Finance, stated that: "We are glad to announce that consolidated loan assets of the Group grew by 28% at Rs 55,800 crs during 9M FY21 as against last year of Rs 43,436 crs. Consolidated Profit increased by 20% at Rs 2,795 crs during 9M FY21 as against last year of Rs 2,333 crs."

George Alexander Muthoot, the managing director of Muthoot Finance, said that: "We had a remarkable third quarter with several achievements. Our standalone loan assets of Muthoot Finance has crossed the landmark of Rs 50,000 crs. Our active customers presently having a loan account also crossed the landmark of 50 lakhs customers. We have achieved a growth of 22% in gold loan portfolio during the 9 months of current year and likely to end the year with at least 25% growth as against previous year growth of 22%."

"During the quarter, gold loan portfolio of Muthoot Finance increased by Rs 3,389 crs to Rs 49,622 crs i.e., QoQ growth of 7%. Standalone profit of Muthoot Finance for the 9 months ended December 31, 2020 increased by 24% at Rs 2,726 crs. Our disbursements for the quarter were focused on new customer additions, fresh loans to active and inactive customers and top-up loans to existing customers. We disbursed fresh loans to 3.88 lakh new customers amounting to Rs 2,976 crs and to 4.38 lakh inactive customers amounting to Rs 2,960 crs. Subsidiaries followed a cautious approach towards lending. Non-gold loan portfolio in subsidiaries constituted 10% of consolidated loan portfolio," he added.

Muthoot Finance is the largest gold financing company in India in terms of loan portfolio.

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