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Muthoot Finance has recorded 16% decline in the
net profit on consolidated basis to Rs 819.24 crore for the quarter ended June
2022 (Q1FY2023) over a corresponding quarter of last year. The company has witnessed
moderation in loan growth, while margins also eased in Q1FY2023. However, the
asset quality of the company witnessed improved in Q1FY2023.
Income from operations declined 5% to Rs
2804.32 crore in the quarter ended June 2022. Interest expense fell 3% to Rs
1050.9 crore, while other expenses (including staff cost of Rs 344.74 crore and
other expenses of Rs 289.59 crore) moved up 35% to Rs 634.33 crore. Ensuing
Gross profit declined 20% to Rs 1119.09 crore in Q1FY2023 over Q1FY2022.
Depreciation rose to Rs 17.05 crore in Q1FY2023
from Rs 15.2 crore in Q1FY2022, while the company has reversed provisions of Rs 9.91 crore in Q1FY2023 from charge of Rs 81.8 crore in Q1FY2022. PBT declined 15%
to Rs 1111.95 crore.
Effective tax rate rose to 25.8% in Q1FY2023
from 25.3% in Q1FY2022. The net profit of the company declined 16% to Rs
819.24 crore in the quarter ended June 2022.
Business performance
Gross retail loan AUM of the company increased
8% yoy to Rs 56689 crore at end June 2022. Non-gold loans fell 6% to Rs 513
crore of AUM at end June 2022.
The net Interest margin (NIM) of the company, on
calculated basis, eased by 191 bps on sequential basis to 10.95% in Q1FY2023.
Gross stage 3 assets of the company dipped to
2.13% at end June 2022 from 2.99% a quarter ago. ECL Provision as % of Gross
Loan Assets eased to 1.16% at end June 2022 from 1.24% a quarter ago.
CRAR ratio was at comfortable level of 30.62% at
end June 2022.
Branch network of the company increased to 5667
branches, after four quarters of decline, at end June 2022. Employee count
increased to 26618 at end June 2022 from 26716 a quarter ago.
Book
value of the company stood at
Rs 456.6 per share at end June 2022. Adjusted book value (adjusting for net
stage 3 assets) stood at Rs 442.9 per share at end June 2022.
Muthoot Finance (MFIN),
India’s largest gold financing company in terms of loan portfolio, registered
net profit of Rs 802 crore in Q1FY23 as against Rs 971 crore in Q1FY22, a
decrease of 17% YoY. Loan Assets stood at Rs 56,689 crore as compared to Rs 52,614
crore in the same quarter last year, registering a growth of 8% YoY. During the
quarter loan assets declined Rs 1,364 crore, ie. decline of 2% QoQ.
Muthoot Homefin (India)
(MHIL), the wholly owned subsidiary, loan portfolio decreased to Rs 1,475 crore
as against Rs 1,705 crore in same quarter last year. Total revenue for Q1 FY23
stood at Rs 38 crore, down 17% YoY. Profit after tax stood at Rs 1.50 crore in
Q1FY23 as against Rs 0.50 crore in the same quarter last year, up 200% YoY.
Stage III Asset as percentage of Gross Loan Asset stood at 2.58% end June 2022 as compared to 2.10% end March
2022.
Belstar Microfinance (BML),
is an RBI registered micro finance NBFC and a subsidiary company where Muthoot
Finance holds 56.97% stake. Loan portfolio for Q1FY23 stood at Rs 4,696 crore
as against Rs 3,072 crore in Q1FY22, an increase of 53% YoY. Profit after tax
stood at Rs 14 crore in Q1FY23, up 600% YoY as against Rs 2 crore in the same
quarter last year. Stage III Asset as percentage of Gross Loan Asset stood at
7.33% as of June 30, 2022 as compared to 5.73% end March 2022.
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 131
crore in Q1FY23 as against Rs 61 crore in same quarter last year. Profit after
Tax stood at Rs 7 crore in Q1 FY23 as against Rs 4 crore in the same quarter
last year.
Asia Asset Finance PLC (AAF)
is a subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake.
Loan portfolio grew to LKR 1,762 crore as against LKR 1,429 crore last year, an
increase of 23% YoY. Total revenue for Q1FY23 stood at LKR 116 crore as against
LKR 68 crore last year. Profit after tax stood at LKR 5 crore in Q1FY23 as
against profit of LKR 1 crore in same quarter last year.
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 commercial vehicles and equipment. Loan portfolio for
Q1FY23 stood at Rs 198 crore as against Rs 333 crore in same quarter last year.
Total revenue for Q1FY23 stood at Rs 11 crore.
Speaking about the results,
George Jacob Muthoot, Chairman, Muthoot Group said, “We continue to deliver
stellar performance in gold loan space. Though there is a dip in loan assets
during the quarter, we have achieved a YoY growth of 9% in loan assets at Rs 63,444
crore. High frequency indicators suggest recovery in economic activity, with
strong urban demand environment though the rural demand is still reviving. The
Indian economy has been resilient and we are optimistic about steady demand
conditions for gold loans coupled with the huge untapped opportunity in gold
loan segment. The RBI approval for opening new 150 branches, coupled with the
recent digital initiatives, gold Loan@home service will help us further expand
and tap new customers.
George Alexander Muthoot,
Managing Director, Muthoot Finance said, “The impact of the very low interest
rate teaser loans has resulted in lower yields during Q1FY23. The launching of
teaser loans was a strategic move taken in Q3 FY 22 and it enabled us to
attract a set of new high value customers. During the quarter, we focused on
migrating such teaser loans to higher rate schemes and we successfully
completed this exercise end June 2022.
Hence the decline in loan assets by 2%. Although our live number of customers
is 50 Lakh, we have a customer base of more than 4 to 5 times this number, who
have had earlier transacted with us. Certainly these customers will come back
to Muthoot for availing the high quality service we offer them when they
require credit. We are expecting opening of 150 new branches for which approval
was received from RBI to be completed by October 2022 upon which additional
business will be generated.”
Financial Performance FY2022:
For the year ended March 2022 (FY2022), Muthoot
Finance reported 6% rise in Income from operations at Rs 12184.91 crore. Other
income jumped 47% to Rs 52.55 crore in FY2022. The total income improved 6% to
Rs 12237.46 crore. Interest expense increased 4% to Rs 4255.85 crore, while other
expenses moved up 5% to Rs 2117.90 crore. Ensuing Gross profit rose 8% to Rs 5863.71
crore. Depreciation increased 4% to Rs 70.00 crore, while provision and write
offs moved up 50% to Rs 383.52 crore. PBT rose 5% to Rs 5410.19 crore. Effective
tax rate stood at 25.5% compared to 25.6%. The minority interest increased 2% to
Rs 14.70 crore. The final bottomline of the company inched up 6% to Rs 4016.62 crore
in FY2022.
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Muthoot Finance:
Consolidated Results
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Particulars
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2206 (3)
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2106 (3)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Income from operations
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2788.34
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2955.83
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-6
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12184.91
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11534.56
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6
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Other Income
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15.98
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7.59
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111
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52.55
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35.63
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47
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Total Income
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2804.32
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2963.42
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-5
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12237.46
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11570.19
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6
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Interest Expenses
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1050.90
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1085.55
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-3
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4255.85
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4099.93
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4
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Other expenses
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634.33
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471.02
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35
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2117.90
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2016.21
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5
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Gross profit
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1119.09
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1406.85
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-20
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5863.71
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5454.05
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8
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Depreciation
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17.05
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15.20
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12
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70.00
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67.36
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4
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Profit before tax and
Provisions
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1102.04
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1391.65
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-21
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5793.71
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5386.69
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8
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Provisions and write
off
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-9.91
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81.80
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LP
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383.52
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255.22
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50
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Profit before tax
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1111.95
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1309.85
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-15
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5410.19
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5131.47
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5
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Provision for tax
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286.98
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331.27
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-13
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1378.87
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1312.61
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5
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PAT
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824.98
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978.59
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-16
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4031.32
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3818.86
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6
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Minority Interest
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5.74
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0.71
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708
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14.70
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14.47
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2
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PAT after MI
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819.24
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977.88
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-16
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4016.62
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3804.39
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6
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EPS*(Rs)
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81.6
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97.5
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100.1
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94.8
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Adj BV (Rs)
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442.9
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383.7
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431.8
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383.9
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* Annualized on
current equity of Rs 401.36 crore.
Face Value: Rs 10, Figures in Rs Crore
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Source: Capitaline
Corporate Database
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