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Muthoot Capital Services Ltd.

BSE: 511766 Sector: Financials
NSE: MUTHOOTCAP ISIN Code: INE296G01013
BSE 00:00 | 27 Mar 261.45 -3.35
(-1.27%)
OPEN

266.00

HIGH

273.00

LOW

252.90

NSE 00:00 | 27 Mar 263.20 -1.40
(-0.53%)
OPEN

275.00

HIGH

291.05

LOW

245.55

OPEN 266.00
PREVIOUS CLOSE 264.80
VOLUME 2045
52-Week high 939.60
52-Week low 246.90
P/E 6.62
Mkt Cap.(Rs cr) 430
Buy Price 255.00
Buy Qty 4.00
Sell Price 267.00
Sell Qty 2.00
OPEN 266.00
CLOSE 264.80
VOLUME 2045
52-Week high 939.60
52-Week low 246.90
P/E 6.62
Mkt Cap.(Rs cr) 430
Buy Price 255.00
Buy Qty 4.00
Sell Price 267.00
Sell Qty 2.00

Muthoot Capital Services Ltd. (MUTHOOTCAP) - Chairman Speech

Company chairman speech

MESSAGE FROM THE MANAGING DIRECTOR

Dear Valued Members

I am glad to present to you with Muthoot Capital Services Limited’s (MCSL) AnnualReport at a time when your company marks its silver jubilee year. It is also with greatdelight and indeed its a matter of pride for us that MCSL has been recognized with‘India’s Best Company of the Year Award 2018’ in Automobile Financingwhich has been instituted by Berkshire Media. It is noteworthy that we were selected aftera detailed analysis of 500+ companies across services and infrastructure sector in theareas of innovation workplace culture leadership business ethics governance corporatesocial responsibility and company reputation.

As part of the annual report I am happy to present to you the financial andoperational results of MCSL for the year 2018-19. As you are aware that the Banking andNBFC industries have been going through challenging times and auto industry too has beenfacing challenges in growth due to multiple headwinds. However it is remarkable that MCSLhas closed the 25th year on a high.

The Company has achieved a milestone disbursement of Rs. 2000 + Crores of Rs. 2135.04Crores in FY 2018-19 and a total AUM of Rs. 2741.05 Crores (including sold portfolio ofRs. 656.85 Crores) as compared to Rs. 1969.69 Crores of disbursement and Rs. 2238.02Crores of gross AUM in the previous year. The Company has earned a net profit after tax ofRs. 82.42 Crores during the year FY 2018-19 which is 53.57% increase from the previousyear.

It is heartening to mention that in the very last month of the year the company wasable to ink its single largest- securitization deal for Rs. 236.00 Crores which reflectsthe confidence in our two-wheeler portfolio. Moreover the Company has raised newsanctions of Rs. 505 Crores from Banks / NBFC in the current year besides sanctions of Rs.912 Crores from securitization transactions. We have ended the year with a Gross NPA ofRs. 113.14 Crores on which we are maintaining a provision coverage of 45% which not onlyprovides sufficient cushion but also reflects our strategy in ensuing confidence amongour stakeholders.

MCSL has been ramping up its presence in non-southern states. The share of businessfrom North and East has increased to 24% from 13% in the last one year. This geographicaldiversification especially helped MCSL during the temporary impact it faced at the time ofthe calamity in Kerala. MCSL has also completed the piloting of its used-car business andwould soon be moving in top gear into the states of Kerala Karnataka and Tamil Nadu. MCSLhas also been increasingly harnessing digital process and analytics for its loanprocesses with a view to have best of the portfolio quality and be the best in theindustry in terms of service delivery to its end customer. At the same time MuthootPappachan Group of which the Company is a part of also embarked upon the journey ofenhancing its Brand Image and Equity and renowned actor Padma Shri Ms. Vidya Balan hasbeen signed up as the brand ambassador wherein she would endorse the products andservices of the Company as well. It is indeed a matter of repute and honour for theCompany to be associated with such a personality.

MCSL has continued to invest in the society it functions in through its socialresponsibility initiatives such as rehabilitation of persons who have suffered spinal cordtrauma renovation of orphanages for children and working with reputed organizations tofight the menace of substance abuse.

The Company has come a long way since its humble beginnings 25 years ago. At thisjuncture I express my heartfelt gratitude to you and all those who have supported thegrowth of the Company and trusted us over the years - our esteemed shareholders bankersregulatory authorities customers investors and all our employees. We will strive tocontinue to stand up for those values which have been our strength over the lasttwenty-five years and will continue to work towards changing the lives of the common manempowering them with our easy and simple products.

With regards

Sd/-

THOMAS GEORGE MUTHOOT

Managing Director