Muthoot Capital Services Q3 net up 14% to Rs 6.06 cr

Total income of the company grew 23% to Rs 57.94 cr in Dec quarter from Rs 47.29 cr in third quarter of 2014-15

Muthoot Capital Services today reported 14 per cent rise in net profit at Rs 6.06 crore for the quarter ending December 31, driven by growth in disbursements especially in the southern states.

Muthoot Capital Services is a part of Muthoot Pappachan Group, which is engaged in two-wheeler financing.

Total income of the company grew 23 per cent to Rs 57.94 crore in December quarter from Rs 47.29 crore in third quarter of 2014-15.

Interest expenditure increased 19 per cent to Rs 22.12 crore in third quarter of this fiscal from Rs 18.65 crore in the year-ago period. Total expenses grew 24 per cent to Rs 48.59 crore from Rs 39.17 crore in the year-ago period.

"During the quarter that just went by, the company has expanded operations in Rajasthan, Delhi, Haryana and Punjab and strengthened the manpower to tap the market potential," Muthoot Capital Services Chief Executive R Manomohanan said in a statement.

"With the revival in the economy and the resulting increase in demand, the company's foray into new states and strengthening the operations in the existing states, we are confident of improving our performance in the coming months," he added.

The company has started making additional ad hoc provision for NPA at the rate of Rs 50 lakh every quarter since the previous quarter. Such additional provision totals to Rs 1 crore as of December 31, 2015.

The company has already disbursed loans amounting to Rs 545.41 crore this financial year until December 31. Total loanbook of the company stands at Rs 933.51 crore.

"The company continues to focus on the twin objectives of giving easy two-wheeler loans besides generating profits for its loyal shareholders," Muthoot Capital Services Managing Director George Muthoot said in a statement.