Income from operations improved 16% to Rs 3016.43 crore in the quarter ended December 2020. Interest expenses galloped 29% to Rs 1048.58 crore, while other expenses (including staff cost of Rs 288.85 crore and other expenses of Rs 210.12 crore) declined 4% to Rs 498.97 crore. Ensuing Gross profit improved 16% to Rs 1468.88 crore in Q3FY2021 over Q3FY2020.

Depreciation rose to Rs 17.45 crore in Q3FY2021 from Rs 16.21 crore in Q3FY2020, while provision and write offs jumped to Rs 100.87 crore in Q3FY2021 from Rs 97.6 crore in Q3FY2020. PBT increased 17% to Rs 1350.56 crore.

Effective tax rate rose to 25.5% in Q3FY2021 from 25.3% in Q3FY2020. The net profit of the company increased 18% to Rs 1004.84 crore in the quarter ended December 2020.

Business performance

Gross retail loan AUM of the company increased 31% yoy to Rs 50391 crore at end December 2020.

The net Interest margin (NIM) of the company, on calculated basis, eased by 238 bps on sequential basis to 13.99% in Q3FY2021.

Gross stage 3 assets of the company increased to 1.30% at end December 2020 from 1.26% a quarter ago. ECL Provision as % of Gross Loan Assets increased to 1.23% at end December 2020 from 1.20% a quarter ago.

CRAR ratio was at comfortable level of 26.38% at end December 2020.

Branch network of the company increased to 5417 branches, after four quarters of decline, at end December 2020. Employee count eased to 25893 at end December 2020 from 25987 a quarter ago.

Book value of the company stood at Rs 361.3 per share at end December 2020, while adjusted book value (adjusting for net stage 3 assets) stood at Rs 360.4 per share end December 2020

The consolidated loan assets of the Group grew by 28% at Rs 55800 crore during 9MFY21 as against last year of Rs 43436 crore.

Muthoot Homefin (MHIL), the wholly owned subsidiary, loan portfolio decreased to Rs 1881 crore as against previous year of Rs 2025 crore. Total revenue for Q3FY21 and 9MFY21 stood at Rs 51 crore and Rs 167 crore as against total revenue of Rs 88 crore and Rs 240 crore for corresponding periods last year. It achieved a profit after tax of Rs 2 crore and Rs 8 crore in Q3FY21 and 9MFY21 as against last year's profit of Rs 11 crore and Rs 31 crore for corresponding period. Its Stage III Asset on Gross Loan Asset % end December 2020 stood at 1.56%. Company also made a Covid ECL provision of Rs 21 crore additionally.

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 2886 crore as against last year of Rs 2285 crore, a YoY increase of 26%. During Q3FY21, loan portfolio increased by Rs 199 crore. It achieved a profit after tax of Rs 5 crore and Rs 35 crore in Q3FY21 and 9MFY21 as against previous year profit after tax of Rs 26 crore and Rs 77 crore. Its Stage III Asset on Gross Loan Asset % end December 2020 stood at 0.67%. Company also made a Covid ECL provision of Rs 41 crore additionally.

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 107 crore and Rs 258 crore in Q3FY21 and 9MFY21 as against Rs 85 crore and Rs 217 crore in the previous year. It generated a Profit after Tax of Rs 9 crore and Rs 22 crore in Q3FY21 and 9MFY21 as against Rs 5 crore and Rs 12 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 1331 crore as against last year of LKR 1301 crore, a YoY increase of 2%. Total revenue for Q3FY21 and 9MFY21 stood at LKR 71 crore and LKR 217 crore as against previous year total revenue of LKR 86 crore and LKR 252 crore. It generated a profit after tax of LKR 1.6 crore and LKR 1.8 crore in Q3FY21 and 9MFY21 as against previous year profit after tax of LKR 4 crore and LKR 9 crore.

Muthoot Money (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. Recently, Company has started extending loans for Commercial Vehicles and Equipments. Its loan portfolio stood at Rs 421 crore as on December 31 2020.During Q3FY21, loan portfolio decreased by Rs 42 crore. Total revenue for Q3FY21 and 9MFY21 stood at Rs 16 crore and Rs 54 crore. It made a profit of Rs 3 crore for 9M ended December 2020. Company also made a Covid ECL provision of Rs 8 crore additionally.

Financial Performance 9MFY2021:

For the nine months ended December 2020 (9MFY2021), Muthoot Finance reported 19% rise in Income from operations at Rs 8426.29 crore. Other income rose 5% to Rs 21.15 crore in 9MFY2021. The total income improved 19% to Rs 8447.44 crore. Interest expense increased 32% to Rs 3048.81 crore, while other expenses moved up 1% to Rs 1433.17 crore. Ensuing Gross profit rose 19% to Rs 3965.46 crore. Depreciation increased 12% to Rs 47.07 crore, while provision and write offs moved up 3% to Rs 172.06 crore. PBT jumped 20% to Rs 3746.33 crore. Effective tax rate stood at 25.4% compared to 25.5%. The minority interest dipped 56% to Rs 10.68 crore. The final bottomline of the company gained 21% to Rs 2784.43 crore in 9MFY2021.