Muthoot Finance Q3 results: Net profit rises 22% to Rs 1,392 crore

Muthoot Finance has posted a 22 per cent rise in net profit during the third quarter of the current financial year to Rs 1,392 crore, as against Rs 1,145 crore in Q3 FY24.

 

The company's total revenue from operations also increased by 36 per cent to Rs 5,189 crore, compared to Rs 3,820 crore during the same period in FY24. The company's consolidated loan assets under management grew by 34 per cent from Rs 82,773 crore last financial year to Rs 111,308 crore during the quarter under review.

 

“Amid favourable macroeconomic indicators, the Union Budget’s positive tax reform announcements are expected to start a consumption cycle. Combined with a steadfast commitment to the fiscal deficit target, the general economic outlook looks promising. Also, the RBI’s focus on enhancing liquidity and the move to slash the benchmark interest rate for the first time in five years paint an optimistic outlook," said George Jacob Muthoot, chairman, the Muthoot Group.

 

"In line with our vision to emerge as a diversified financial services provider, we are actively expanding our new product portfolio, including business loans, SME loans, loans against property, and personal loans. These offerings complement our core gold loan business, providing customers with tailored financial solutions while enabling us to broaden our customer base and revenue streams. As we scale up our non-gold loan segments and enhance the contribution from subsidiaries, we are on track to grow their share to 18-20 per cent over the next five years. We remain committed to leveraging our strengths to drive inclusive growth and long-term value creation for all stakeholders," he said.

 

"We are pleased to report another strong quarter, building on our robust performance trajectory. In Q3 FY25, our standalone loan AUM witnessed significant growth of Rs 26,305 crore, driven by a robust 37 per cent year-on-year growth in our core gold loan portfolio. During the nine months, gold loans increased by Rs 21,660 crore, registering a growth of 29 per cent. This was in tandem with the accelerated demand for gold loans, especially during the festive season," said George Alexander Muthoot, managing director, Muthoot Finance.

 

"Our standalone profit after tax for nine months grew by 23 per cent year-on-year to Rs 3,693 crore. The surge in gold loan advances reflects not only the trust our customers place in us but also the resilience of India's economic momentum. Among our subsidiaries, we have witnessed growth in our housing finance arm, which disbursed Rs 880 crore in nine months of FY25, up from Rs 493 crore last year," he said.

 

"We have tempered disbursements in response to challenges faced in the microfinance sector, and our focus continues to be on strengthening collections and enhancing the quality of the loan book. We are closely monitoring the industry situation, and we see this as a transitional issue and expect it to be resolved in the next couple of quarters. The expansion of our branch network and the increasing adoption of digital platforms have further strengthened customer engagement, with a significant portion of transactions now being facilitated through digital channels," he added.