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Muthoot Finance has recorded 3% growth in the net profit on
consolidated basis to Rs 1039.77 crore for the quarter ended December 2021
(Q3FY2022) over a corresponding quarter of last year. The company has witnessed
moderation in the net interest income growth, while loan growth has also
decelerated in Q3FY2022. Further, the asset quality of the company witnessed
deterioration in Q3FY2022.
Income from operations increased 5% to Rs 3168.09 crore in the
quarter ended December 2021. Interest expense rose 1% to Rs 1060.62 crore,
while other expenses (including staff cost of Rs 307.95 crore and other expenses
of Rs 215.87 crore) moved up 5% to Rs 523.82 crore. Ensuing Gross profit moved
up 8% to Rs 1583.65 crore in Q3FY2022 over Q3FY2021.
Depreciation rose to Rs 18.2 crore in Q3FY2022 from Rs 17.45 crore
in Q3FY2021, while provision and write offs jumped to Rs 168.47 crore in
Q3FY2022 from Rs 100.87 crore in Q3FY2021. PBT increased 3% to Rs 1396.98 crore.
Effective tax rate eased to 25.3% in Q3FY2022 from 25.5% in
Q3FY2021. The net profit of the company increased 3% to Rs 1039.77 crore in the
quarter ended December 2021.
Business performance
The gold loan AUM of the company increased 9% yoy to Rs 54688 crore
at end December 2021. The consolidated Loan AUM rose 9% to
Rs 60896 crore end December 2021.
The net Interest margin (NIM) of the company, on calculated basis,
eased by 23 bps on sequential basis to 13.76% in Q3FY2022.
Gross stage 3 assets of the company increased to 3.82% at end
December 2021 from 1.85% a quarter ago. ECL Provision as % of Gross Loan Assets
increased to 1.46% at end December 2021 from 1.30% a quarter ago.
CRAR ratio was at comfortable level of 29.94% at end December
2021.
Branch network of the company increased to 5490 branches end
December 2021. Employee count increased to 26599 at end December 2021 from 26139
a quarter ago.
Book value of the company stood at Rs 433.8 per share at
end December 2021. Adjusted book value (adjusting for net stage 3 assets) stood
at Rs 401.7 per share at end December 2021.
Commenting
on the results, George Jacob Muthoot, Chairman stated, "As the country was
struggling to recover from the impact of second wave of corona virus pandemic,
the third wave hit during the third quarter jolted again the recovery of
economic activities to the Pre-covid levels. Despite this condition, our company
was able to maintain the consolidated AUM at Rs 60896 crore focusing more on
loan recovery. We could register a 9% growth in consolidated AUM when compared
to last year at Rs 55800 crore. Also we could register a 8% growth in
consolidated Profit after Tax at Rs 3025 crore compared to last year during the
nine months. Now with the decline in the covid positivity rates, the overall
recovery in economic activity emerging in the country seems optimistic. Hence
with the economic growth gradually picking up and consumers realising that gold
loans are all-weather loans, we remain optimistic about growth in gold loans.
Moreover, considering that there is large household gold jewellery holding in
India, there lies huge potential for growth in the gold loan industry for
players like us."
George
Alexander Muthoot, Managing Director said, "As the financial sector continue to
be in grip of covid pandemic in the aftermath of second wave and the slowing
down on account of the third wave, our focus was on the recovery of loans
especially the gold loan segment. Despite the situation, the quarter witnessed
22% increase in disbursements and 38% increase in recoveries in gold loans.
During the quarter, we disbursed fresh loans to 3.81 lakh new customers
amounting to Rs 4007 crore and to 4.98 lakh inactive customers amounting to Rs 4426
crore. Further, Company could register a 10% increase in profit after tax at Rs
2994 crore 9MFY2022 and 9% growth in gold loans at Rs 54215 crore as against
last Year. As regards our subsidiary, we continue to maintain a cautious
stance. The collections across Micro finance, vehicle finance and home loans
has improved. Our subsidiaries in microfinance and in Sri Lanka registered a QoQ
growth in their loan portfolios of 14% and 8% respectively. We expect our
improved versions of our several digital initiatives like mobile app, POS,
online gold loans, loan at home app etc to facilitate our loan growth and will
continue to see our focus."
Consolidated
performance of Muthoot Finance
Muthoot
Finance (MFIN), India’s largest gold financing company in terms of loan
portfolio, registered net profit of Rs 2994 crore in 9MFY22 as against Rs 2726 crore
in 9MFY21, an increase of 10% YoY. The net profit stood at Rs 1029 crore in
Q3FY22 as against Rs 991 crore in Q3FY21, an increase of 4% YoY. Loan Assets
stood at Rs 54688 crore as compared to Rs 50391 crore last year, registering a
growth of 9% YoY.
Muthoot
Homefin (India) (MHIL), the wholly owned subsidiary, loan portfolio stood at Rs
1579 crore as on 9MFY22. Total revenue for Q3FY22 and 9MFY22 stood at Rs 60 crore
and Rs 152 crore. It achieved a Profit after tax of Rs 2 crore and Rs 3 crore
in Q3FY22 and 9MFY22. Stage III Asset as percentage of Gross Loan Asset reduced
to 4.43% end December 2021 as compared to 4.73% end September 2021.
Belstar Microfinance (BML), is an RBI registered micro finance NBFC and a
subsidiary Company where Muthoot Finance holds 70.01% stake. Loan portfolio for
9MFY22 increased to Rs 3836 crore as against Rs 2886 crore in 9MFY21, an
increase of 33% YoY. During Q3FY22, loan portfolio increased by Rs 482 crore.
It achieved a Profit after tax of Rs 12 crore and Rs 16 crore in Q3FY22 and 9MFY22.
Stage III Asset as percentage of Gross Loan Asset stood at 5.54% as of December
31, 2021 as compared to 3.61% end September 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 134 crore and Rs 293 crore in Q3FY22 and 9MFY22.
Total revenue for Q3FY22 and 9MFY22 stood at Rs 12 crore and Rs 29 crore. It
achieved a Profit after tax of Rs 8 crore and Rs 17 crore in Q3FY22 and 9MFY22.
Asia
Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot
Finance holds 72.92% stake. Loan portfolio grew to LKR 1577 crore as against
LKR 1331 crore last year, an increase of 18% YoY. Total revenue for Q3FY22 and 9MFY22
stood at LKR 83 crore and LKR 226 crore. It achieved a Profit after tax of LKR 4
crore and LKR 7 crore in Q3FY22 and 9MFY22.
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 company is extending loans for commercial
vehicles and equipment. Loan portfolio stood at Rs 236 crore for the nine
months ended FY 2022. Total revenue for Q3FY22 and 9MFY22 stood at Rs 10 crore and
Rs 34 crore.
Financial Performance 9MFY2022:
For the nine months ended December 2021 (9MFY2022),
Muthoot Finance reported 9% rise in Income from operations at Rs 9163.77 crore.
Other income jumped 54% to Rs 32.54 crore in 9MFY2022. The total income
improved 9% to Rs 9196.31 crore. Interest expense increased 6% to Rs 3223.38 crore,
while other expenses moved up 4% to Rs 1496.44 crore. Ensuing Gross profit rose
13% to Rs 4476.49 crore. Depreciation moved up 5% to Rs 49.22 crore, while
provision and write offs jumped 114% to Rs 368.92 crore. PBT increased 8% to Rs
4058.35 crore. Effective tax rate stood at 25.5% compared to 25.4%. The
minority interest dipped 48% to Rs 5.51 crore. The final bottomline of the
company inched up 8% to Rs 3019.58 crore in 9MFY2022.
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Muthoot Finance:
Consolidated Results
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Particulars
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2112 (3)
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2012 (3)
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Var %
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2112 (9)
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2012 (9)
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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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3155.78
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3000.78
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5
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9163.77
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8426.29
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9
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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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12.31
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15.65
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-21
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32.54
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21.15
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54
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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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3168.09
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3016.43
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5
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9196.31
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8447.44
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9
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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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1060.62
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1048.58
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1
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3223.38
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3048.81
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6
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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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523.82
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498.97
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5
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1496.44
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1433.17
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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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1583.65
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1468.88
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8
|
4476.49
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3965.46
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13
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5454.06
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4506.72
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21
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Depreciation
|
18.20
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17.45
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4
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49.22
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47.07
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5
|
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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1565.45
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1451.43
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8
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4427.27
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3918.39
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13
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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
|
168.47
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100.87
|
67
|
368.92
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172.06
|
114
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255.22
|
187.08
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36
|
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Profit before tax
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1396.98
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1350.56
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3
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4058.35
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3746.33
|
8
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5131.48
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4260.40
|
20
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Provision for tax
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353.34
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343.93
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3
|
1033.26
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951.22
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9
|
1312.61
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1091.71
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20
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PAT
|
1043.65
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1006.64
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4
|
3025.09
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2795.11
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8
|
3818.87
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3168.69
|
21
|
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Minority Interest
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3.88
|
1.80
|
116
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5.51
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10.68
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-48
|
14.47
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30.44
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-52
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PAT after MI
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1039.77
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1004.84
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3
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3019.58
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2784.43
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8
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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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103.6
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100.2
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|
100.3
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92.5
|
|
94.8
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78.2
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ABV (Rs)
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401.7
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352.5
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401.7
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352.5
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388.2
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286.1
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* Annualized on
current equity of Rs 401.35 crore. Face Value: Rs 10, Figures in Rs Crore
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Source: Capitaline
Corporate Database
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