Highlights:

The consolidated AUM has increased by 16% yoy to Rs 46501 crore end June 2020 and the consolidated PAT has increased by 52% to Rs 858 crore in Q1FY2021.

The standalone AUM has increased by 15% to Rs 41296 crore and the standalone profit has increased by 59% to Rs 841 crore.

The branch network continues to be the same at 5330 branches.

Muthoot Finance contributed Rs 834 crore to profit and the subsidiaries Rs 23 crore.

The company has guided for 15% growth, while in last 10 days of March and April month most of the branches were closed. Now, all branches are functioning, all staff are coming to the office and business is back to normal. The company is sure to achieve that 15% growth for the full year.

With regards to the moratorium, the company is not doing any auctions for NPAs.

The company has around 12% of portfolio in the 3 main subsidiaries of the microfinance, the home finance, and the vehicle finance.

The company is going slow in vehicle finance and home finance business. The company would wait for the end of the moratorium and see how customers are behaving after the moratorium in September and October it would slowly restart lending.

All the staff available is into the collections, and they are doing reasonably good collections in both these subsidiaries.

The microfinance has slowly started lending and expects to be back to normal in the next 3 months.

With the strong growth in gold loan, the share of the other loans is expected to decline from 12% to about 9-10% by the end of FY2021.

The proportion of customers transacting online has more than doubled to 40% from 19% earlier.

The company has started a new vertical - loan at home. It is having good traction.

The company has also launched another product - the Gold Unlocker. The gold which is kept locked in locker or in homes can be placed with the company that will be evaluated, tested and also insured. The customers can avail loans whenever they want.

The company has offered a free insurance cover of Rs 1 crore to all the gold loans at a Rs 1 nominal money for customers affected by COVID.

LTV is 54% for the company.

About 10% or 20% of the customers takes gold loan at the maximum LTV.

The opex would return to pre-covid level ahead.

The average duration remains 3 to 5 months only. The 80% or more are repeat customers.

On the liquidity front, the company is at least 3 or 4x in a better position in terms of liquidity

Regarding the microfinance, the company has more than 60% of the portfolio is SHG and the remaining is JLG.

The collection efficiency has touched 76% in July in the microfinance business.

The collection efficiency has touched 87% in housing finance segment and 75% in vehicle finance for July 2020.

The company expects a stable level of NIM.

For subsidiaries, the company has made a provision of Rs 32 crore in Q1FY2021, while the company do not expect much provision requirement ahead.

The company plan to open about 250 branches in the next 12 months.