Muthoot Finance Q3 net dips 28%

The gold financing company today reported net profit of Rs 270.07 crore in the year-ago period

Gold financing company Muthoot Finance Limited (MFL) registered a 28 per cent drop in net profit at Rs 194 crore for the quarter ended  December 31 ,2013, compared with Rs 270 crore in the same quarter last fiscal.  Net profit for the nine-month period from April–December of the current fiscal stood at Rs 599 crore, a decline of 24 per cent against last year.

Total income stood at Rs 1,201 crore. In Q2 this was Rs 1,302 crore. Gold loan outstanding during the April–Dec period dropped 12 per cent, from Rs 25,338 crore to Rs 22,263 crore. The number of loan accounts also declined 6% from 6.2 million to 5.8 million. Addressing a press conference here on Thursday, MG George Muthoot, chairman, said the RBI’s move to relax the LTV cap from 60  to 75 per cent would enable it to get back the customers who had moved to the unorganised sector.