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Muthoot Finance has recorded 8% growth in the
net profit on consolidated basis to Rs 1001.969 crore for the quarter ended
September 2021 (Q2FY2022) over a corresponding quarter of last year. The
company has exhibited moderation in net interest income growth and jump in
provisions leading to moderate growth in the net profit for Q2FY2022. The
company has witnessed moderation in the total income growth, as the loan growth
decelerated on high base effect in Q2FY2022. The company also witnessed
moderation in the asset quality in Q2FY2022.
Income from operations increased 9% to Rs 3064.806
crore in the quarter ended September 2021. Interest expense rose at slower pace
of 5% to Rs 1077.209 crore, while other expenses (including staff cost of Rs 283.442
crore and other expenses of Rs 218.165 crore) declined 1% to Rs 501.607 crore. Ensuing
Gross profit improved 15% to Rs 1485.99 crore in Q2FY2022 over Q2FY2021.
Depreciation rose to Rs 15.83 crore in Q2FY2022
from Rs 15.60 crore in Q2FY2021, while provision and write offs jumped to Rs 118.642
crore in Q2FY2022 from Rs 28.109 crore in Q2FY2021. PBT increased 9% to Rs 1351.523
crore.
Effective tax rate increased to 25.8% in
Q2FY2022 from 25.2% in Q2FY2021. The net profit of the company increased 8% to
Rs 1001.969 crore in the quarter ended September 2021.
Business performance
Gross retail loan AUM of the company increased 17%
yoy to Rs 55147 crore at end September 2021. Non-gold loans dipped 41% to Rs 465
crore of AUM at end September 2021.
The net Interest margin (NIM) of the company, on
calculated basis, eased by 75 bps on sequential basis to 12.97% in Q2FY2022.
Gross stage 3 assets of the company increased to
1.85% at end September 2021 from 1.22% a quarter ago. ECL Provisionas % of
Gross Loan Assets increased to 1.30% at end September 2021 from 1.24% a quarter
ago.
CRAR ratio was at comfortable level of 27.60% at
end September 2021.
Branch network of the company was at 5439 branches
end September 2021. Employee count increased to 26139 at end September 2021
from 25397 a quarter ago.
Book
value of the company stood at
Rs 416.7 per share, while adjusted book value (adjusting for net stage 3
assets) stood at Rs 409.2 per share at end September 2021.
While
commenting on the results George Jacob
Muthoot, Chairman, Muthoot Group said, “As second wave of the pandemic has ebbed and economy further unlocks,
corporate India has emerged stronger and better. We were able to maintain
growth momentum during the quarter with all of our branches now open for
business. Our consolidated loan AUM stood at Rs 60919 crore as of end September
2021, clocking a growth of 5% QoQ and a growth of 17% yoy despite a challenging
business environment. Consolidated Profit after tax stood at Rs 1981 crore for
the half year ended September 2021, registering a growth of 11% YoY. The
contribution of our subsidiaries to the overall consolidated AUM stands steady
at 10%. As a responsible NBFC, we have been consistently working towards an
overall growth strategy focusing on governance, performance and ESG framework.”
George
Alexander Muthoot, Managing Director, Muthoot Finance said,
“The demand environment remains strong
and as we enter the festive season we remain optimistic about growth momentum
in gold loan over the second half of FY22. We are optimistic about growing our
gold loan book further and maintain 15% growth guidance for FY22. We are
witnessing improved collections across Micro finance, vehicle finance and home
loans. In the last quarter we had consciously decided to go slow on non-gold
lending business, we continue to remain conscious and monitor the space for
emerging opportunities. We will continue to follow the strategy of balanced
growth while maintaining overall asset quality.”
Consolidated
performance of Muthoot Finance
Muthoot
Finance Consolidated Loan Assets under management grew 17% yoy to Rs 60919 crore
as at H1FY22 as against Rs 52286 crore
last year. During the quarter, Consolidated Loan Assets under management
increased by Rs 2784 crore, an
increase of 5% QoQ. Consolidated
Profit after tax for H1FY22 grew 11%
yoy to Rs 1981 crore as
against Rs 1788 crore last year.
Muthoot Finance (MFIN), India’s largest gold loan company in
terms of loan portfolio, registered a net profit of Rs 1965 crore in H1FY22 as against Rs 1735 crore in H1FY21, an
increase of 13% yoy. The net
profit stood at Rs 994 crore in
Q2FY22 as against Rs 894 crore
in Q2FY21, an increase of 11% YoY.
Loan Assets stood at Rs 55147 crore
as compared to Rs 47016 crore
last year, registering a growth of 17% YoY.
During the quarter, gold loan assets increased by Rs 2613 crore, an increase of 5%.
Muthoot Homefin (India) (MHIL), the wholly owned
subsidiary of Muthoot Finance, the loan portfolio stood at Rs 1640 crore for the half year ended
FY2022. Total revenue for Q2FY22 and H1FY22 stood at Rs 46 crore and Rs 92 crore.
It achieved a Profit after tax of Rs 0.23
crore and Rs 0.71 crore
in Q2FY22 and H1FY22. Stage III Asset as percentage of Gross Loan Asset stood
at 4.73% as on September 30,
2021 as compared to 5.94% as of
June 30, 2021 and net of Stage 3 ECL provisions stood at 2.77%.
Belstar Microfinance (BML), is an RBI
registered micro finance NBFC and a Subsidiary Company where Muthoot Finance
holds 70.01% stake. Loan
portfolio for H1FY22 increased to Rs 3354
crore as against Rs 2687 crore
last year, an increase of 25%
YoY. Total revenue for Q2FY22 and H1FY22 stood at Rs 150 crore and Rs 302 crore.
It achieved a Profit after tax of Rs 2 crore
and Rs 4 crore in Q2FY22 and
H1FY22. Stage III Asset as percentage of Gross Loan Asset decreased to 3.61% as of September 30, 2021 as
compared to 3.67% as of June 30, 2021 and net of Stage 3 ECL provisions 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 98 crore and Rs 159
crore in Q2FY22 and H1FY22 . Total revenue for Q2FY22 and H1FY22 stood at Rs 10 crore and Rs 17 crore. It achieved a Profit after
tax of Rs 5 crore and Rs 9 crore in Q2FY22 and H1FY22.
Asia Asset Finance PLC (AAF) is a subsidiary based
in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio grew to LKR 1457 crore as against LKR 1298
crore last year, an increase of 12% YoY. Total revenue for Q2FY22 and
H1FY22 stood at LKR 75 crore and
LKR 143 crore. It achieved a
Profit after tax of LKR 2 crore
and LKR 3 crore in Q2FY22 and
H1FY22.
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 Cars, Two wheelers, Commercial Vehicles and
Equipments. Loan portfolio stood at Rs 282
crore for the half year ended FY2022. Total revenue for Q2FY22 and
H1FY22 stood at Rs 13 crore and
Rs 24 crore. It achieved a
Profit after tax of Rs 0.92 crore
and Rs 0.80 crore in Q2FY22 and
H1FY22. It’s Stage III Asset on Gross Loan Asset % as on September 30, 2021
stood at 16.95% and net of Stage 3 ECL provisions stood at 12.89%.
Financial Performance H1FY2022:
For half year ended September 2021 (H1FY2022),
Muthoot Finance reported 11% rise in Income from operations at Rs 6007.99 crore.
Other income jumped 268% to Rs 20.24 crore in H1FY2022. The total income
improved 11% to Rs 6028.23 crore. Interest expense increased 8% to Rs 2162.76 crore,
while other expenses moved up 4% to Rs 972.63 crore.
Ensuing Gross profit rose 16% to Rs 2892.84 crore.
Depreciation rose 5% to Rs 31.02 crore, while provision and write offs moved up
182% to Rs 200.45 crore. PBT jumped 11% to Rs 2661.38 crore. Effective tax rate
stood at 25.5% compared to 25.3%. The minority interest dipped 82% to Rs 1.62 crore.
The final bottomline of the company inched up 11% to Rs 1979.84 crore in
H1FY2022.
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Muthoot Finance:
Consolidated Results
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Particulars
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2109 (3)
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2009 (3)
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Var %
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2109 (6)
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2009 (6)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Income from operations
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3052.16
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2821.03
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8
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6007.99
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5425.51
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11
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11530.79
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9683.98
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19
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Other Income
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12.65
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3.17
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299
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20.24
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5.50
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268
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35.63
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23.29
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53
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Total Income
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3064.81
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2824.20
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9
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6028.23
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5431.01
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11
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11566.42
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9707.27
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19
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Interest Expenses
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1077.21
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1028.18
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5
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2162.76
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2000.24
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8
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4099.93
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3172.84
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29
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Other expenses
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501.61
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508.03
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-1
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972.63
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934.20
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4
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2012.43
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2027.71
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-1
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Gross profit
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1485.99
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1287.99
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15
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2892.84
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2496.57
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16
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5454.06
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4506.72
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21
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Depreciation
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15.83
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15.60
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1
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31.02
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29.62
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5
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67.36
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59.24
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14
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Profit before tax and
Provisions
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1470.17
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1272.39
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16
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2861.82
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2466.95
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16
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5386.70
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4447.48
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21
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Provisions and write
off
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118.64
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28.11
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322
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200.45
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71.19
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182
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255.22
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187.08
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36
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Profit before tax
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1351.52
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1244.28
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9
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2661.38
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2395.76
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11
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5131.48
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4260.40
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20
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Provision for tax
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348.65
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313.48
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11
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679.92
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607.29
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12
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1312.61
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1091.71
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20
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PAT
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1002.88
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930.79
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8
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1981.45
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1788.47
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11
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3818.87
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3168.69
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21
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Minority Interest
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0.91
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4.72
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-81
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1.62
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8.89
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-82
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14.47
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30.44
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-52
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PAT after MI
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1001.97
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926.08
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8
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1979.84
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1779.59
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11
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3804.40
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3138.25
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21
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EPS*(Rs)
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99.9
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92.3
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98.7
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88.7
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94.8
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78.2
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* Annualized on
current equity of Rs 401.332 crore. Face Value: Rs 10, Figures in Rs Crore
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Source: Capitaline
Corporate Database
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