Muthoot
Finance conducted a concall on 19 May 2023 to discuss the financial results for
the quarter ended March 2023 and prospects of the company. George Alexander
Muthoot, MD of the company addressed the call:
Highlights:
The company recorded highest
ever gold loan disbursements of Rs 51851 crore in the quarter ended March 2023.
The gold loan growth was highest ever in Q4 at Rs 5021 crore. The interest
income was also highest ever at Rs 2677 crore in Q4FY2023.
The company has recorded 8%
sequential growth in the consolidated net profit to Rs 1009 crore in Q4.
The branch network of the
company has increased to 5838 branches end March 2023, an increase of 259
branches in FY2023.
The consolidated AUM of the
company has increased by 10% on sequential basis to Rs 71497 crore end March
2023. The standalone on gold loan AUM has also increased by 9% on sequential basis
to Rs 63210 crore end March 2023.
The company has launched
business loans in urban areas and plans to expand to tier 2 and 3 location in
the second phase. The ticket size is Rs 10 lakh.
The company has also
launched micro personal loans, an EMI loan for 9 to 12 months with the ticket size
up to Rs 1 lakh.
The loan growth has also
revived in the subsidiaries with this sharp increase in disbursements.
The company aims to grow disbursements
by 400% in the home finance business. It would add 26 branches in FY 2024.
The company has a recorded Rs
20 crore of disbursements in the vehicles business in the month of March 2023.
In the microfinance business
the Asset and management has crossed Rs 6192 crore with the net worth rising above
Rs 1000 crore. The revenues have increased to Rs 1000 crore in FY2024 rising 40%.
The collection efficiency has been strong at 99%.
The company has spent Rs 96
crore on CSR and has targeted Rs 100 crore for FY2024.
The company is targeting
loan growth of 15% for FY2024.
More than 90% of the gold
loans get closed before 12 months.
The standalone yields stood
at 18.48% up from 18.22% in the previous quarter. The company expects to
maintain yields at current level and spreads at 10.0%.
The company expects cost to
asset ratio at 3.5%.
The company had RBI approval
to open 150 new gold loan branches and it has added 122 branches in the last
nine months. The company plans to add 100-150 branches in FY2024.
As per the company, the higher
gold prices have supported the growth in the gold loan book, while the
competition is easing gradually and the aggression of banks is waning.
The gold loan average ticket
size has increased to Rs 75940 from Rs 70000 in the previous quarter.
The company has added more
than 1000 employees during the quarter and also provided increments its employees.
The company expects its
cost of borrowings to rise to 8.5% over the next few quarters, while it has seen
some softening in incremental borrowing costs in last few weeks.
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