Business performance

Gross retail gold loan AUM of the company increased 10% yoy to Rs 35250 crore at end September 2019. The loan book of subsidiaries moved up 39% to Rs 5140 crore end September 2019.

The net Interest margin (NIM) of the company, on calculated basis, jumped to 16.05% in Q2FY2020 from 13.54% in Q1FY2020 and 13.92% in Q1FY2019.

Gross stage 3 assets of the company increased to 3.43% end September 2019 from 3.20% at end June 2019. ECL Provisionas % of Gross Loan Assets rose to 1.96% from 1.93%.

CRAR ratio was at comfortable level of 27.11% at end September 2019.

Branch network of the company increased to 4540 branches end September 2019. Employee count increased to 25091 at end September 2019 from 24644 a quarter ago.

Book value of the company stood at Rs 264.5 per share at end September 2019.

Subsidiaries

Muthoot Finance (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 42%, at Rs 1388 crore for H1FY20 as against Rs 975 crore in the previous year. Loan Assets stood at Rs 35731 crore end September 2019 as against Rs 32319 crore end September 2018, Y-o-Y growth of 11%.

Muthoot Homefin (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs 2098 crore as against previous year of Rs 1775 crore, a YoY increase of 18%. During Q2FY20, loan portfolio increased by Rs 110 crore, QoQ growth of 6%. Total revenue for Q2FY20 & H1FY20 stood at Rs 91 crore & Rs 152 crore as against previous year total revenue of Rs 55 crore & Rs 104 crore. It achieved a profit after tax of Rs 14 crore & Rs 20 crore in Q2FY20 & H1FY20 as against previous year profit of Rs 11 crore & Rs 21 crore. Its Stage III Asset on Gross Loan Asset % end September 2019 stood at 1.10%.

Belstar Microfinance (BMPL) , an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs 2107 crore as against last year of Rs 1381 crore, a YoY increase of 53%. During Q2FY20, loan portfolio increased by Rs 169 crore. It achieved a profit after tax of Rs 28 crore & Rs 51 crore in Q2FY20 & H1FY20 as against previous year profit after tax of Rs 16 crore & Rs 29 crore. Its Stage III Asset on Gross Loan Asset % end September 2019 stood at 1.02%.

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 71 crore & Rs 132 crore in Q2FY20 & H1FY20 as against Rs 67 crore & Rs 116 crore in the previous year. It generated a Profit after Tax of Rs 4 crore & Rs 7 crore in Q2FY20 & H1FY20 as against Rs 4 crore & Rs 6 crore in the previous year.

The Sri Lankan subsidiary - Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 72.92% stake, increased its loan portfolio to LKR 1314 crore as against last year of LKR 1124 crore, a YoY increase of 17%. During Q2FY20, loan portfolio increased by LKR 24 crore. Total revenue for Q2FY20 & H1FY20 stood at LKR 86 crore & LKR 166 crore as against previous year total revenue of LKR 69 crore & LKR 138 crore. It generated a profit after tax of LKR 3 crore & LKR 5 crore in Q2FY20 & H1FY20 as against previous year profit after tax of LKR 2 crore & LKR 4 crore.

Muthoot Money (MML), became a wholly owned subsidiary of Muthoot Finance in October 2018. MML 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 Q2FY20, it has increased its loan portfolio to Rs 426 crore. During Q2FY20, loan portfolio increased by Rs 34 crore. Total revenue for Q2FY20 & H1FY20 stood at Rs 17 crore & Rs 31 crore.

Financial Performance H1FY2020:

For the half year ended September 2019 (H1FY2020), the company reported 24% jump in Income from operations at Rs 4465.04 crore, on consolidated basis. Other income galloped 169% to Rs 13.46 crore in H1FY2020. The total income improved 24% to Rs 4478.50 crore. Interest expense increased 27% to Rs 1498.29 crore, while other expenses moved up 13% to Rs 905.98 crore. Ensuing Gross profit jumped 28% to Rs 2074.23 crore. Depreciation increased 12% to Rs 25.80 crore, while provision and write offs moved up 211% to Rs 68.79 crore. PBT increased 25% to Rs 1979.64 crore. Effective tax rate dipped to 25.7% compared to 34.6%. The minority interest increased 53% to Rs 15.85 crore. The final bottomline of the company inched up 42% to Rs 1456.0 crore in H1FY2020.