Muthoot Finance Q2 Results FY2023, Profit at Rs. 901.66 crores

On 10th November 2022, Muthoot Finance announced its quarterly results for the second quarter of FY2023.
 

Q2FY23 Performance updates:

- During the quarter, Consolidated Loan Assets under management increased by Rs. 912 crores i.e. an increase of 1% QoQ. 
- Revenue from operations stood at Rs. 2824.85 crores
- PBT stood at Rs. 1206.77 crores
- Consolidated Profit after tax for Q2 FY23 increased by 9% QoQ at Rs. 901.66 crores

Business Highlights:

- The company opened 24 branches in Q2 FY23  
- Partnered with LuLu International Exchange to provide UAE customers with easy gold loan repayment services 
- First NBFC to launch Milligram Gold Programme – a gold reward program for its customers
- Muthoot Finance Ltd (MFIN), India’s largest gold loan company in terms of loan portfolio, registered a net profit of Rs. 867 crores inQ2 FY23 
- Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary of Muthoot Finance, loan portfolio stood at Rs. 39 crores
- M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC and a subsidiary company where Muthoot Finance holds 56.97% stake. Loan portfolio for H1 FY23 increased to Rs. 5,138 crores 
- Muthoot Insurance Brokers Pvt Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs.152 crores in Q2 FY23
- Asia Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio grew to LKR 1,930 crores as against LKR 1,457 crores last year, an increase of 32% YoY. 
- Muthoot Money Ltd (MML) is a wholly owned subsidiary of Muthoot Finance Ltd . MML is a RBI registered NonBanking Finance Company engaged mainly in extending loans for Commercial Vehicles and Equipment. Loan portfolio stood at Rs.234 crores for half year ended FY23.

Commenting on the results, Mr. George Jacob Muthoot, Chairman stated, “We delivered another quarter of excellent performance by achieving a consolidated loan assets growth of 6% YoY reaching Rs. 64,356 crores. Consolidated Profit after Tax also saw an increase of 9% QoQ for Q2 FY 23 at Rs.902crores. The contribution of our subsidiaries to the overall consolidated AUM remain at 11%. Our Microfinance Subsidiary, Belstar has registered a remarkable YoY Loan growth of 53% with AUM at Rs.5138 crores. We are also witnessing improved collections across micro finance, vehicle finance and home loans. We continue to monitor these sectors for emerging opportunities with an objective to drive a balanced business growth.”

Mr. George Alexander Muthoot, Managing Director said, " Our gold loan AUM stood at Rs.56,501crores registering a YOY growth of 3% and a slight QoQ growth. The standalone profit after tax increased by 8% QoQ for Q2 FY23 at Rs.867crs. Though we were able to migrate teaser loans to higher rates, full impact transformation will take few more quarters. Further despite the rising interest rate scenario, we were able to maintain our borrowing cost at 7.98% for Q2FY23. In the coming quarters, we expect the borrowing cost to remain in that range mainly due to the positive impact on account of retirement of ECB amounting to USD450million in October 2022 which carried a high cost. We expect that our improved focus on loan disbursements and recovery measures as well as borrowing cost will enable us to maintain NIM around 11-12%. We continue to invest in our various digital initiatives along with our Gold loan@home service. We will continue to work on strengthening our growth strategy with focus on branch expansion and digital strategy”.