Muthoot Finance Q3 PAT jumps 64% to Rs 841 cr

The gold loan company's consolidated net profit surged 63.7% to Rs 841.09 crore in Q3 December 2019 (Q3 FY20) as against net profit of Rs 513.92 crore in Q3 December 2018 (Q3 FY19).

Total income rose 35.8% year-on-year (YoY) to Rs 2,587.40 crore in Q3 FY20. Profit before tax (PBT) soared 36.2% to Rs 1,137.04 crore YoY. Current tax expenses fell 8.7% to Rs 284.18 crore during the period under review. The result was announced post trading hours yesterday, 14 February 2020.

The Kerala-based non-banking financial company (NBFC) reported a consolidated loan assets under management (AUM) for the nine month of current fiscal at Rs 43,436 crore, against Rs 35,939 crore in the year-ago period, an increase of 21%.

Group branch network grew 2% to 5,268 in Q3 FY20 from 5,190 in Q2 September 2019 (Q2 FY20).

On a standalone basis, net profit rose 65.57% to Rs 803.41 crore on 34.71% increase in total income to Rs 2,313.16 crore in Q3 FY20 over Q3 FY19. PBT rose 38.09% to Rs 1080.29 YoY.

Loan assets climbed 18.56% to Rs 38,498 crore during Q3 FY20 as against Rs 32,470 crore in Q3 FY19. During the quarter, gold loan assets increased by Rs 2783 crore.

Return on Average Loan assets stood at 8.66% in Q3 FY20 as compared to 5.99% in Q3 FY19. Return on Average Equity stood at 29.22% in Q3 FY20 from 21.48% in Q3 FY19. Capital Adequacy Ratio stood at 26.51 in Q3 FY20 over 25.74 in Q3 FY19.

Speaking on the Q3 outcome, M G George Muthoot, the chairman of Muthoot Finance, has stated that, "We are glad to announce that consolidated loan assets of the group grew by 21% at Rs 43,436 crs during 9M FY20 as against last year of Rs 35,939 crore. Consolidated profit increased by 49% at Rs 2,321 crs during 9M FY20 as against last year of Rs 1,554 crore. During the quarter, gold loan portfolio of Muthoot Finance increased by Rs 2,783 crore to Rs 37,724 crore. Standalone profit of Muthoot Finance for the 9 months ended December 31, 2019 increased by 50% at Rs 2,191 crore."

Meanwhile, the company said its board approved raising of funds by way of public issue of redeemable non- convertible debentures (NCDs) to be issued in one or more tranches.

Muthoot Finance is the largest gold financing company in India in terms of loan portfolio. It provides personal and business loans secured by gold jewellery, or gold loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time-frame, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.

Shares of Muthoot Finance rose 0.81% to end at Rs 746.60 on Friday, 14 February 2020.

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