Muthoot Finance conducted a
conference call on 30 May 2024 to discuss the financial results for the quarter
ended March 2024. George Alexander Muthoot,
MD of the company addressed
the call:
Highlights:
The assets under
management of the company has crossed Rs 89,000 crore on consolidated basis and
Rs 75,000 crore on standalone basis end March 2024.
The consolidated AUM has
jumped 25% yoy and the standalone AUM also moved up 20% in FY2024.
The contribution of
subsidiaries to AUM has increased to 15% from 12% last year reflecting of
strategic diversification efforts.
The consolidated profit
after tax increased 22% to Rs 4468 crore in FY2024.
The contribution
subsidiaries in profit after tax increased to 10% from 6% last year, underlining
the resilience of diversified business model with a strong focus on mission to
emerge as a diversified financial services group.
The company also focused
on strengthening digital strategies for a transformative growth across product portfolios.
Despite the various
industry challenges, the company continued to maintain leadership position leader
in the gold loan industry and capitalized on the strong growth opportunities in
affordable housing, micro finance, personal loans, small business loans and
vehicle finance.
The robust domestic
consumption growth, growing middle class segment and rising aspirations provide
ample opportunities for future growth.
The company aims to
raise the share of non-gold subsidiaries to 18 to 20% of AUM in next 3-5 years.
The company also expects
to achieve the loan growth of 20% in FY2025 as against the guidance of 15%.
The standalone loan book
has touched to Rs 75827 crore end March 2024, driven by the robust growth in gold
loan of Rs 3667 crore in Q4FY2024.
Complimenting to the gold
loan business, the non gold loan business offerings continue to gain traction.
Housing finance arm
achieved disbursement of Rs 815 crore in FY2024 as against Rs 223 crore in FY2023.
The micro finance arm
also witness upward trend in loan assets rising sharply by 62% yoy to touch a
milestone of Rs 10023 crore and posting 161% surge in the profit after tax to Rs
340 crore in FY2024.
The company is confident
that the impact of regulatory norm of Rs 20,000 cash disbursal limit on business
and volumes to be limited.
The company has opened
225 new branches in FY2024 across regions. The company would continue to add
150-200 branches every year.
The company has started
salaried personal loan and SME loans.
In the vehicle loan
business, the company doesn’t see very big prospects due to crowded market.
The company expects a
good growth in microfinance, home loans and personal loans segments.
The average borrowing
cost is 8.45-8.5%, while an incremental cost of borrowing is around 8.8-9%. So,
the overall borrowing cost will move towards 9%. The impact on return ratio is
expected negligible as the company can pass on this incremental cost to the
borrowers.
The average LTV on the
gold loans is around 63% and the customer can take a loan of up to 75%.
The auctions stood at Rs
162 crore in Q4FY2024 and Rs 892 crore in FY2024.
The ticket size wise the
share of below Rs 1 lakh stands at 35%, Rs 1 to 3 lakh at 37% and above Rs 3
lakh is 29%.
The interest accrued
stands at Rs 2190 crore end March 2024 up from Rs 1853 crore end March 2023.
The overall ECL provisions stand
at Rs 935 crore, of which stage 1 stands at Rs 620 crore, stage 2 at Rs 28 crore
and stage 3 at Rs 288 crore.
|