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Muthoot Finance Ltd.

BSE: 533398 Sector: Financials
NSE: MUTHOOTFIN ISIN Code: INE414G01012
BSE 00:00 | 01 Apr 604.15 -7.45
(-1.22%)
OPEN

609.00

HIGH

614.30

LOW

591.00

NSE 00:00 | 01 Apr 604.50 -8.65
(-1.41%)
OPEN

603.35

HIGH

614.75

LOW

594.50

OPEN 609.00
PREVIOUS CLOSE 611.60
VOLUME 54312
52-Week high 954.05
52-Week low 477.50
P/E 8.96
Mkt Cap.(Rs cr) 24,229
Buy Price 600.35
Buy Qty 10.00
Sell Price 610.00
Sell Qty 20.00
OPEN 609.00
CLOSE 611.60
VOLUME 54312
52-Week high 954.05
52-Week low 477.50
P/E 8.96
Mkt Cap.(Rs cr) 24,229
Buy Price 600.35
Buy Qty 10.00
Sell Price 610.00
Sell Qty 20.00

Muthoot Finance Ltd. (MUTHOOTFIN) - Chairman Speech

Company chairman speech

Empowering lives responsibly

"More than just India's most trusted financial services brand we are a potentinstrument of inclusiveness and empowerment for all sections of society; and the tenet ofresponsibility is a natural extension of that business philosophy."

M. G. George Muthoot

Chairman

Dear Shareholders

We believe responsible businesses are sustainable businesses in the long run. Morethan just India's most trusted financial services brand we are a potent instrument ofinclusiveness and empowerment for all sections of society; and our tenet of responsibilityis a natural extension of this business philosophy. Our performance during the year mustbe viewed through the prism of responsible value creation for all stakeholders.

Economic landscape

On a macro level the global economy witnessed a moderation in growth due to aconfluence of factors which affected most of the major economies. India registered a GDPgrowth of 6.8% lower than the previous forecast of 7% on account of a sluggish fourthquarter. However the Reserve Bank of India (RBI) has projected a GDP growth forecast of7% for 2019-20 following the infusion of additional liquidity in the economy with morefocus on priority sectors.

On the sectoral front 2018-19 ended with several challenges for Non-banking FinanceCompanies (NBFCs) affecting their growth trajectory. However what is encouraging is thatthe RBI is monitoring the sector more closely to address any signs of strain which mayprogressively impact the entire financial services sector.

NBFCs are seeking new ways to fund their growth and the RBI is facilitating theprocess with streamlining the system. NBFCs play an extremely important role in sustainingconsumption demand as well as capital formation in the small and medium industrial segmentand are critical to the Indian financial sector. To survive these challenging times NBFCsneed to opt for better practices and strengthen their risk-management framework.

Performance in perspective

The stressed NBFC scenario had a minor impact on gold loan players. The high costs ofborrowing in the market led to a marginal increase in interest rates which increased thecost to customers. During the year under review our revenues grew from R63331 Millionsin 2017-18 to R68806 Millions in 2018-19 a growth of 9%. Profits for the year increasedfrom R17776 Millions in 2017-18 to R19721 Millions in 2018-19 a growth of 11%. Gold loanassets under management also witnessed a significant increase from R288484 Millions in2017-18 to R335853 Millions in 2018-19 a 16% increase.

Our business segments grew favourably as did our subsidiaries. Microfinance businessgrew its loan AUM from R1137 Crores in 2017-18 to R1840 Crores in 2018-19 registering61.88% growth. Our Sri Lankan subsidiary opened six new branches across various locationsduring the year under review.

Our home finance subsidiary Muthoot Homefin achieved a milestone of crossing grossloan disbursements of R2000 Crores since inception. This division also raised capitalthrough its first Non-Convertible Debentures (NCD) issue. Our insurance broking armMuthoot Insurance Brokers grew favourably at a rate of 43% during the year under reviewand we expect this growth trend to also continue into the next financial year. We enteredinto the business of providing vehicle loans and equipment finance to our customersthrough our subsidiary Muthoot Money Limited which commenced operations in June 2018.This marks our entry into yet another financial product segment and we are optimisticthat we will be able to service our customers and grow this business successfully.

Empowerment from grassroots

Over the years we have become the nation's largest gold financing company and haveestablished ourselves as a brand that inspires trust and customer loyalty. With enhancedbrand outreach and stakeholder recall our iron-cast roadmap is to lead responsibly; andcontinue to help elevate the lives of millions of people through our communityinitiatives.

We had worked hard for community development and empowerment from the grassroots evenin an era when the term Corporate Social Responsibility was not coined. Over the yearswe have been actively involved in several community initiatives such as educationenvironment sanitation health and medical aid as well as financial aid to theeconomically backward classes.

Our community priorities are a part of our growth agenda and going forward we willcontinue to strengthen our operations grow our national and international reach andleverage our brand to transform lives by creating possibilities.

We will continue to lead all our stakeholders with responsible partnerships to enrichand empower lives and create value for all sections of society.

Warm regards

M. G. George Muthoot

Chairman