Income from operations improved 18% to Rs 3118.98 crore in the quarter ended March 2021. Interest expense increased 22% to Rs 1051.12 crore, while other expenses (including staff cost of Rs 322.78 crore and other expenses of Rs 256.48 crore) declined 4% to Rs 579.26 crore. Ensuing Gross profit improved 28% to Rs 1488.6 crore in Q4FY2021 over Q4FY2020.

Depreciation rose to Rs 20.29 crore in Q4FY2021 from Rs 17.23 crore in Q4FY2020, while provision and write offs jumped to Rs 83.15 crore in Q4FY2021 from Rs 20.68 crore in Q4FY2020. PBT increased 23% to Rs 1385.16 crore.

Effective tax rate increased to 26.1% in Q4FY2021 from 25.9% in Q4FY2020. The net profit of the company increased 23% to Rs 1019.98 crore in the quarter ended March 2021.

Business performance

Gross retail loan AUM of the company increased 26% yoy to Rs 52622 crore at end March 2021. Non-gold loans declined 17% to Rs 696 crore of AUM at end March 2021.

The net Interest margin (NIM) of the company, on calculated basis, eased by 98 bps on sequential basis to 14.09% in Q4FY2021.

Gross stage 3 assets of the company dipped to 0.88% at end March 2021 from 1.30% a quarter ago. ECL Provision as % of Gross Loan Assets was steady at 1.19% at end March 2021 from 1.23% a quarter ago.

CRAR ratio was at comfortable level of 27.44% at end March 2021.

Branch network of the company increased to 5451 branches end March 2021. Employee count increased to 25911 at end March 2021 from 25893 a quarter ago.

Book value of the company stood at Rs 388.2 per share at end March 2021 up from Rs 361.3 per share at end March 2021.

Muthoot Finance (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 23% at Rs 3722 crore for FY21 as against Rs 3018 crore in the previous year. Loan Assets stood at Rs 52622 crore end March 2021 as against Rs 41611 crore end March 2020, showing a yoy growth of 26%. During the quarter, gold loan assets increased by Rs 2304 crore.

Muthoot Homefin (MHIL), the wholly owned subsidiary has a loan portfolio of Rs 1704 crore as against previous year of Rs 1977 crore. Total revenue for FY 21 stood at Rs 241 crore as against previous year total revenue of Rs 288 crore. It achieved a net profit of Rs 13 crore in FY21 as against previous year profit of Rs 32 crore. Its Stage III Asset on Gross Loan Asset % stood at 4% and net of Stage 3 ECL provisions stood at 2.78% end March 2021.

Belstar Microfinance (BML), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its gross loan portfolio to Rs 3300 crore as against last year of Rs 2631 crore, registering a yoy increase of 25%. During Q4FY21, loan portfolio increased by Rs 414 crore. It achieved a profit after tax of Rs 47 crore in FY21 as against previous year profit after tax of Rs 99 crore. Its Stage III Asset on Gross Loan Asset % stood at 2.37% and net of Stage 3 ECL provisions stood at 0.50% end March 2021.

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 406 crore in FY21 as against Rs 323 crore in the previous year. It generated a Profit after Tax of Rs 32 crore in FY21 as against Rs 11 crore in the previous year, an increase of 190%.

The Sri Lankan subsidiary - Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 72.92% stake, increased its loan portfolio to LKR 1,400 crore as against last year of LKR 1,384 crore, a yoy increase of 1%. Total revenue for FY21 stood at LKR 295 crore as against previous year total revenue of LKR 333 crore. It generated a profit after tax of LKR 5cr in FY 21 as against previous year profit after tax of LKR 7 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 Cars, Two wheelers ,Commercial Vehicles and Equipments. During FY21, loan portfolio stood at Rs 367 crore, as against last year of Rs 509 crore. Total revenue for FY21 stood at Rs 70 crore. It generated a Profit after Tax of Rs 4 crore in FY21 as against Rs 3 crore in the previous year.

Financial Performance FY2021:

For the year ended March 2021 (FY2021), Muthoot Finance reported 19% rise in Income from operations at Rs 11530.79 crore. Other income surged 53% to Rs 35.63 crore in FY2021. The total income improved 19% to Rs 11566.42 crore. Interest expense increased 29% to Rs 4099.93 crore, while other expenses declined 1% to Rs 2012.43 crore. Ensuing Gross profit rose 21% to Rs 5454.06 crore. Depreciation increased 14% to Rs 67.36 crore, while provision and write offs moved up 36% to Rs 255.22 crore. PBT jumped 20% to Rs 5131.48 crore. Effective tax rate stood at 25.6% compared to 25.6%. The minority interest declined 52% to Rs 14.47 crore. The final bottomline of the company inched up 21% to Rs 3804.40 crore in FY2021.