Income from operations improved 10% to Rs 1880.41 crore in the quarter ended March 2019. Interest expense increased 35% to Rs 611.05 crore, while other expenses (including staff cost of Rs 274.09 crore and other expenses of Rs 168.66 crore) moved up 23% to Rs 442.75 crore. Ensuing Gross profit declined 7% to Rs 826.61 crore in Q4FY2019 over Q4FY2018.

Depreciation increased to Rs 11.94 crore in Q4FY2019 from Rs 11.35 crore in Q4FY2018, while provision and write offs declined to Rs 20.45 crore in Q4FY2019 from Rs 59.64 crore in Q4FY2018. PBT fell 3% to Rs 794.22 crore.

Effective tax rate declined to 35.6% in Q4FY2019 from 38.0% in Q4FY2018. The net profit of the company rose 1% to Rs 511.5 crore in the quarter ended March 2019.

Business performance

Gross retail loan AUM of the company increased 18% yoy to Rs 34246 crore at end March 2019. Non-gold loans moved up 125% to Rs 661 crore of AUM at end March 2019.

The net Interest margin (NIM) of the company, on calculated basis, eased by 194 bps to 14.26% in Q4FY2019 from a high of 16.2% in Q4FY2018.

Gross stage 3 assets of the company increased to 2.72% at end March 2019 from 1.96% at end December 2018. ECL Provision as % of Gross Loan Assets increased to 1.86% at end March 2019 from 1.80% at end December 2018.

CRAR ratio was at comfortable level of 26.12% at end March 2019.

Branch network of the company increased to 4480 branches, after four quarters of decline, at end March 2019. Employee count increased to 24224 at end March 2019 from 24063 at end December 2018.

Book value of the company stood at Rs 244.5 per share at end March 2019, while adjusted book value stood at Rs 237.1 per share at end March 2019.

Subsidiaries

Muthoot Finance on consolidated basis posted 20% growth in loan Assets under management to Rs 38304 crore as against last year of Rs 31921 crore. During the quarter, Consolidated Loan Assets under management increased by 7% of Rs 2361 crore. Consolidated Profit after tax achieved a YOY increase of 14% of Rs 2103 crore as against last year of Rs 1844 crore.

Muthoot Homefin (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs 1908 crore as against previous year of Rs 1459 crore, recording an increase of 31%. During Q4FY19, loan portfolio increased by Rs 72 crore. Total revenue for FY19 stood at Rs 226 crore as against previous year total revenue of Rs 117 crore. It achieved a net profit of Rs 36 crore in FY19 as against previous year profit of Rs 22 crore. Its Stage III Asset on Gross Loan Asset % stood at 0.74% end March 2019.

Belstar Investment and Finance (BIFPL), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs 1842 crore as against last year of Rs 1138 crore, registering an increase of 62%. During Q4FY19, loan portfolio increased by Rs 279 crore. It achieved a profit after tax of Rs 73 crore in FY19 as against previous year profit after tax of Rs 27 crore. Its Stage III Asset on Gross Loan Asset % stood at 1.15% end March 2019.

Muthoot Insurance Brokers (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs 268 crore in FY19 as against Rs 169 crore in the previous year. It generated a Profit after Tax of Rs 15 crore in FY19 as against Rs 11 crore in the previous year.

The Sri Lankan subsidiary - Asia Asset Finance PLC (AAF) where Muthoot Finance holds 69.17% stake, increased its loan portfolio to LKR 1257 crore as against last year of LKR 995 crore, posting an increase of 26%. During Q4FY19, loan portfolio increased by LKR 94 crore. Total revenue for FY19 stood at LKR 287 crore as against previous year total revenue of LKR 257 crore. It generated a profit after tax of LKR 10cr in FY19 as against previous year profit after tax of LKR 18 crore.

Muthoot Money (MMPL), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MMPL is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. Recently, Company has started extending loans for Commercial Vehicles and Equipments. During FY19, it has increased its loan portfolio to Rs 311 crore.

Annual Financial Performance:

For the year ended March 2019 (FY2019), Muthoot Finance reported 10% rise in Income from operations at Rs 6878.21 crore. Other income dipped 96% to Rs 2.42 crore in FY2019. The total income improved 9% to Rs 6880.63 crore. Interest expense increased 16% to Rs 2236.84 crore, while other expenses moved up 18% to Rs 1497.33 crore. Ensuing Gross profit rose 1% to Rs 3146.46 crore. Depreciation declined 4% to Rs 42.09 crore, while provision and write offs dipped 89% to Rs 27.55 crore. PBT jumped 8% to Rs 3076.82 crore. Effective tax rate stood at 35.9% compared to 37.5%. The final bottomline of the company inched up 11% to Rs 1972.14 crore in FY2019.