Muthoot Finance moves higher after strong Q2 earnings

Muthoot Finance was up 2.41% to Rs 484.50 at 12:45 IST on BSE after net profit surged 53.05% to Rs 454.15 crore on 20.46% growth in total revenue to Rs 1669.93 crore in Q2 September 2017 over Q2 September 2016.

The result was announced after market hours yesterday, 8 November 2017.

Meanwhile, the S&P BSE Sensex was down 35.72 points or 0.11% at 33,183.09.

On the BSE, 78,000 shares were traded on the counter so far against the average daily volumes of 37,000 shares in the past two weeks. The stock had hit a high of Rs 494.55 and a low of Rs 481.85 so far during the day.

Muthoot Finance's loan assets grew by 1% year on year at Rs 27608 crore as on 30 September 2017.

George Alexander Muthoot, Managing Director, said that the company's subsidiaries have shown an excellent performance. The rise in NPA accounts in Muthoot Finance is mainly on account of more time given to customers for repayment on its shorter tenor loans of 6 months which became NPA faster than its conventional loan tenor of 12 months. The company has also increased standard asset provision to 1.25% higher than the regulatory requirement of 0.35%, Alexander said.

Muthoot Finance is the largest gold financing company in India in terms of loan portfolio. Headquartered in Kerala, the company is a Systemically Important Non-deposit taking non-banking finance company (NBFC).

Powered by Capital Market - Live News