 |
Results
07-Aug-21
|
|
|
|
|
|
|
|
Analysis
|
|
|
|
Muthoot Finance
|
|
Loan growth strong at 25%, margin eases
|
|
|
|
|
|
Muthoot Finance has recorded 15% growth in the net profit on
consolidated basis to Rs 977.88 crore for the quarter ended June 2021
(Q1FY2022) over a corresponding quarter of last year.
The company has exhibited steady core operating performance. The
company has improved the net interest income growth to 18% in Q1FY2022. The asset quality of the company witnessed some deterioration in Q1FY2022, but with higher provisions net NPA remained nil.
Income from operations improved 14% to Rs 2963.42 crore in the
quarter ended June 2021. Interest expense increased 12% to Rs 1085.55 crore, while
other expenses (including staff cost of Rs 277.1 crore and other expenses of Rs
193.92 crore) moved up 11% to Rs 471.02 crore. Ensuing Gross profit improved 16%
to Rs 1406.85 crore in Q1FY2022 over Q1FY2021.
Depreciation rose to Rs 15.2 crore in Q1FY2022 from Rs 14.02 crore
in Q1FY2021, while provision and write offs jumped to Rs 81.8 crore in Q1FY2022
from Rs 43.08 crore in Q1FY2021. PBT increased 14% to Rs 1309.85 crore.
Effective tax rate eased to 25.3% in Q1FY2022 from 25.5% in
Q1FY2021. The net profit of the company increased 15% to Rs 977.88 crore in the
quarter ended June 2021.
Business performance
The consolidated AUM of the company increased 25% yoy to Rs 58135 crore
at end June 2021. The AUM of Muthoot Finance surged 27% to Rs 52614 crore with
gold AUM rising 29% to Rs 52069 crore. The AUM of subsidiaries rose 6% to Rs
5521 crore end June 2021.
The net Interest margin (NIM) of the company, on calculated basis,
eased by 117 bps on sequential basis to 12.87% in Q1FY2022.
Gross stage 3 assets of the company increased to 1.22% at end June
2021 from 0.88% a quarter ago. ECL Provision as % of Gross Loan Assets
increased to 1.24% at end June 2021 from 1.19% a quarter ago.
CRAR ratio was at comfortable level of 27.32% at end June 2021.
Branch network of the company increased to 5443 branches at end
June 2021. Employee count declined to 25397 at end June 2021 from 25911 a
quarter ago.
Book value of the company stood at Rs 392.0 per share at
end June 2021.
Commenting on the results George
Jacob Muthoot, Chairman stated, “As second wave of pandemic hit across the
country in the first quarter, amidst selective lock downs at state and local
level, we took all efforts to open our branches and maintain our services to
the extent possible. Thanks to all our 25000+ workforce, we were able to
maintain our Consolidated Loan AUM on QoQ basis inspite of the tough
environment. However, compared to last year, Loan assets grew by 25% at Rs 58135
crore. Profit after tax for the quarter increased by 14% at Rs 979 crore
compared to last year.”
“We consciously decided to go slow in terms of
non-gold lending business on account of continued uncertainty and emerging
uncertain credit behavior. We are redrawing our strategies in terms of non-gold
lending business and we are confident to emerge stronger as environment
improves. On Gold Loan front, we are targeting 15% growth in the remaining 3
quarters.”
Muthoot Finance Consolidated
Loan Assets under management achieved a yoy increase of 25% at Rs 58135 crore
as at Q1FY22 as against last year of Rs 46501 crore. During the quarter,
Consolidated Loan Assets under management decreased by Rs 145 crore.
Consolidated Profit after tax achieved a yoy increase of 14% of Rs 979 crore as
against last year of Rs 858 crore.
Muthoot Finance (MFIN), the
largest gold financing company in India in terms of loan portfolio, registered
an increase in net profit of 16%, at Rs 971 crore for Q1FY22 as against Rs 841
crore for Q1FY21. Loan Assets stood at Rs 52614 crore compared to Rs 41296
crore previous year, yoy growth of 27%. During the quarter, gold loan assets
increased by Rs 142 crore.
Muthoot Homefin (India) (MHIL),
the wholly owned subsidiary, has a loan portfolio of Rs 1705 crore as against
previous year of Rs 1979 crore. During Q1FY22, loan portfolio increased by
approximately by Rs 1 crore. Total revenue for Q1FY22 stood at Rs 46 crore as
against Rs 59 crore in the previous year. It achieved a profit after tax of Rs 0.48
crore in Q1FY22 as against Rs 0.41 crore in the previous year. Its Stage III
Asset on Gross Loan Asset end June 2021 stood at 5.94% and net of Stage 3 ECL
provisions stood at 4.12%.
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 3072
crore as against last year of Rs 2575 crore, a yoy increase of 19%. It achieved
a profit after tax of Rs 2 crore in Q1FY22 as against previous year profit
after tax of Rs 15 crore. Its Stage III Asset on Gross Loan Asset % end June 2021
stood at 3.67% and net of Stage 3 ECL provisions stood at 1.25%.
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 61
crore in Q1FY22 as against Rs 44 crore in the previous year. It generated a
Profit after Tax of Rs 4.31 crore in Q1FY22 as against Rs 4.16 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 1429 crore as against LKR 1348 crore last year, a yoy
increase of 6%. During Q1FY22, loan portfolio increased by LKR 29 crore. Total
revenue for Q1FY22 stood at LKR 68 crore as against previous year total revenue
of LKR 70 crore. It generated a Profit after Tax of LKR.0.97 crore in Q1FY22 as
against as against previous year loss of LKR 1.69 crore, a yoy increase of 157%.
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. Recently, As on June
30,2021, its loan portfolio stood at Rs 333 crore, as against last year of Rs 497
crore. Total revenue for Q1FY22 stood at Rs 11 crore. It incurred a loss of Rs 0.11
crore in Q1 FY 22 as against previous year loss of 2.47 crore. Its Stage III
Asset on Gross Loan Asset % end June 2021 stood at 18.85% and net of Stage 3
ECL provisions stood at 14.28%.
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.
|
Muthoot Finance:
Consolidated Results
|
|
Particulars
|
2106 (3)
|
2006 (3)
|
Var %
|
2103 (12)
|
2003 (12)
|
Var %
|
|
Income from operations
|
2955.83
|
2604.48
|
13
|
11530.79
|
9683.98
|
19
|
|
Other Income
|
7.59
|
2.34
|
224
|
35.63
|
23.29
|
53
|
|
Total Income
|
2963.42
|
2606.82
|
14
|
11566.42
|
9707.27
|
19
|
|
Interest Expenses
|
1085.55
|
972.06
|
12
|
4099.93
|
3172.84
|
29
|
|
Other expenses
|
471.02
|
426.17
|
11
|
2012.43
|
2027.71
|
-1
|
|
Gross profit
|
1406.85
|
1208.59
|
16
|
5454.06
|
4506.72
|
21
|
|
Depreciation
|
15.20
|
14.02
|
8
|
67.36
|
59.24
|
14
|
|
Profit before tax and
Provisions
|
1391.65
|
1194.57
|
16
|
5386.70
|
4447.48
|
21
|
|
Provisions and write
off
|
81.80
|
43.08
|
90
|
255.22
|
187.08
|
36
|
|
Profit before tax
|
1309.85
|
1151.48
|
14
|
5131.48
|
4260.40
|
20
|
|
Provision for tax
|
331.27
|
293.80
|
13
|
1312.61
|
1091.71
|
20
|
|
PAT
|
978.59
|
857.67
|
14
|
3818.87
|
3168.69
|
21
|
|
Minority Interest
|
0.71
|
4.17
|
-83
|
14.47
|
30.44
|
-52
|
|
PAT after MI
|
977.88
|
853.51
|
15
|
3804.40
|
3138.25
|
21
|
|
EPS*(Rs)
|
97.5
|
85.1
|
|
94.8
|
78.2
|
|
|
* Annualized on
current equity of Rs 401.20 crore.
Face Value: Rs 10, Figures in Rs Crore
|
|
Source: Capitaline Corporate
Database
|
|
|
|
|
Previous News |
Muthoot Finance consolidated net profit rises 18.95% in the December 2023 quarter
(
Results
-
Announcements
15-Feb-24
07:30
)
|
|
|
Muthoot Finance standalone net profit rises 21.58% in the June 2023 quarter
(
Results
-
Announcements
12-Aug-23
07:35
)
|
|
|
Muthoot Finance update on USD 2 billion GMTN programme
(
Corporate News
-
18-Apr-24
13:48
)
|
|
|
Muthoot Finance acquires additional 2.27% stake in Belstar Microfinance
(
Corporate News
-
17-Apr-24
17:44
)
|
|
|
Muthoot Finance
(
Analyst Meet / AGM
-
Conference Call
31-May-24
14:56
)
|
|
|
Muthoot Finance Ltd gains for third straight session
(
Hot Pursuit
-
07-Jun-24
13:05
)
|
|
|
Muthoot Finance to issue NCDs worth Rs 300 crore
(
Other Markets
-
Debt Markets
12-Apr-23
15:39
)
|
|
|
Muthoot Finance schedules board meeting
(
Corporate News
-
28-Jan-23
16:36
)
|
|
|
Muthoot Finance Ltd up for third straight session
(
Hot Pursuit
-
30-Nov-23
13:05
)
|
|
|
Muthoot Finance Ltd spurts 1.94%, up for third straight session
(
Hot Pursuit
-
18-Apr-23
13:05
)
|
|
|
Board of Muthoot Finance recommends interim dividend
(
Corporate News
-
19-Apr-22
09:45
)
|
|
|
|
|
|
Other Stories |
|
|
|
|
|
|
|