Muthoot Finance pre-tax profit up 42% to Rs 1,116 cr, income rises 32%

Loan assets of the group grow by 13% to Rs 40,390 crore during first half of FY20

Gold financing company Muthoot Finance Ltd has posted a growth of 42 per cent in profit before tax, at Rs 1,115.9 crore during the quarter ended September, 2019, compared with Rs 786.52 crore during the same period last year. The firm's total income grew 32.15 per cent to Rs 2,406.3 crore in the quarter from Rs 1,820.8 crore in the corresponding quarter last year.

The company chairman M G George Muthoot said that the consolidated loan assets of the group grew by 13 per cent at Rs 40,390 crore during the first half of FY20 as against last year of Rs 35,835 crore. Consolidated profit increased by 42 per cent at Rs 1,472 crore during first half of the year as against last year's Rs 1,033 crore profit.

In October 2019, the company raised $450 million through issuance of 6.125 per cent senior secured notes, making it the first private sector NBFC to make a debut international bond issue under the relevant regulation, allowing it to tap the US investor base in addition to Asia and Europe, said George Alexander Muthoot, managing director of the company. The proceeds will be used, among other things, for onward lending in accordance with RBI’s ECB guidelines and other laws.

The final order book was in excess of $1.2 Billion with an oversubscription of more than 2.5x. The transaction witnessed 37 per cent participation from Asia, 28 per cent from Europe and the Middle East and 35 per cent from the US with 88 per cent investments from asset managers, 6 per cent from Insurance and Pension Funds and 6 per cent from others, it added.