Income from operations improved 26% to Rs 2633.58 crore in the quarter ended March 2020. Interest expense increased 25% to Rs 864.28 crore, while other expenses (including staff cost of Rs 352.98 crore and other expenses of Rs 250.5 crore) moved up 20% to Rs 603.48 crore. Ensuing Gross profit improved 30% to Rs 1165.82 crore in Q4FY2020 over Q4FY2019.

Depreciation moved up to Rs 17.23 crore in Q4FY2020 from Rs 15.26 crore in Q4FY2019, while provision and write offs declined to Rs 20.68 crore in Q4FY2020 from Rs 35.52 crore in Q4FY2019. PBT increased 33% to Rs 1127.92 crore.

Effective tax rate increased to 25.9% in Q4FY2020 from 35.1% in Q4FY2019. The net profit of the company increased 53% to Rs 829.38 crore in the quarter ended March 2020.

Business performance

Gross retail loan AUM of the company increased 22% yoy to Rs 41611 crore at end March 2020. Non-gold loans moved up 27% to Rs 838 crore of AUM at end March 2020.

The net Interest margin (NIM) of the company, on calculated basis, improved by 50 bps on sequential basis to 15.07% in Q4FY2020.

Gross stage 3 assets of the company declined to 2.16% at end March 2020 from 2.54% a quarter ago. ECL Provision as % of Gross Loan Assets dipped to 1.30% at end March 2020 from 1.86% a quarter ago.

CRAR ratio was at comfortable level of 25.47% at end March 2020.

The company has overall branch network of 5300 branches end March 2020.

Employee count increased to 25554 end March 2020 from 25149 a quarter ago.

Book value of the company stood at Rs 295.0 per share and adjusted book value (adjusting for net stage 3 assets) stood at Rs 286.1 per share at end March 2020.

Subsidiaries

Muthoot Finance, the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 53%, at Rs 3018 crore for FY20 as against Rs 1972 crore in the previous year. Loan Assets stood at Rs 41611 crore end March 2020 as against Rs 34246 crore end March 2019, Y-o-Y growth of 22%. During the quarter, gold loan assets increased by Rs 3113 crore.

Muthoot Homefin (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs 1977 crore as against previous year of Rs 1908 crore, a YoY increase of 4%. Total revenue for FY 20 stood at Rs 288 crore as against previous year total revenue of Rs 226 crore. It achieved a net profit of Rs 32 crore in FY20 as against previous year profit of Rs 36 crore. Its Stage III Asset on Gross Loan Asset % end March 2020 stood at 1.71%.

Belstar Microfinance (BML), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs 2631 crore as against last year of Rs 1842 crore, a YoY increase of 43%. During Q4 FY20, loan portfolio increased by Rs 346 crore. It achieved a profit after tax of Rs 99 crore in FY20 as against previous year profit after tax of Rs 73 crore. Its Stage III Asset on Gross Loan Asset % end March 2020 stood at 0.91%.

Muthoot Insurance Brokers Pvt Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs 323 crore in FY20 as against Rs 268 crore in the previous year. It generated a Profit after Tax of Rs 11 crore in FY20 as against Rs 15 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 1384 crore as against last year of LKR 1257 crore, a YoY increase of 10%. During Q4 FY20, loan portfolio increased by LKR 83 crore. Total revenue for FY20 stood at LKR 333 crore as against previous year total revenue of LKR 287 crore. It generated a profit after tax of LKR 7cr in FY 20 as against previous year profit after tax of LKR 10 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 FY20, it has increased its loan portfolio to Rs 509 crore, as against last year of Rs 311 crore, a YoY increase of 64%. During Q4 FY20, loan portfolio increased by Rs 18 crore. Total revenue for FY20 stood at Rs 70 crore as against previous year total revenue of Rs 16 crore.

Financial Performance FY2020:

For the year ended March 2020 (FY2020), Muthoot Finance reported 28% rise in Income from operations at Rs 9683.98 crore. Other income jumped 252% to Rs 23.29 crore in FY2020. The total income improved 28% to Rs 9707.27 crore. Interest expense increased 25% to Rs 3172.84 crore, while other expenses moved up 20% to Rs 2027.71 crore. Ensuing Gross profit rose 33% to Rs 4506.72 crore. Depreciation moved up 15% to Rs 59.24 crore, while provision and write offs moved up 176% to Rs 187.08 crore. PBT jumped 31% to Rs 4260.40 crore. Effective tax rate stood at 25.6% compared to 35.5%. The minority interest increased 22% to Rs 30.44 crore. The final bottomline of the company inched up 51% to Rs 3138.25 crore in FY2020.