Income from operations improved 18% to Rs 1713.22 crore in the quarter ended March 2017. Interest expense declined 3% to Rs 546.02 crore, while other expenses (including staff cost of Rs 180.16 crore and other expenses of Rs 151.44 crore) moved up 15% to Rs 331.6 crore. Ensuing Gross profit improved 39% to Rs 835.6 crore in Q4FY2017 over Q4FY2016.

Depreciation declined to Rs 13.32 crore from Rs 14.65 crore, while provision and write offs jumped to Rs 233 crore in Q4FY2017 from Rs 110.1 crore in Q4FY2016. PBT increased 24% to Rs 589.28 crore.

Effective tax rate increased to 45.4% in Q4FY2017 from 44.2% in Q4FY2016. The net profit of the company increased 21% to Rs 321.77 crore in the quarter ended March 2017.

Business performance

Gross retail loan AUM of the company increased 12% yoy to Rs 27279 crore at end March 2017. Non-gold loans moved up 35% to Rs 59 crore of AUM at end March 2017.

The net Interest margin (NIM) of the company, on calculated basis, improved sharply by 263 bps on yoy basis to 16.91% in Q4FY2017.

Gross NPA dipped to 2.06% at end March 2017 from 2.92% at end December 2016. Meanwhile, Net NPA also plunged to 1.69% at end March 2017 from 2.54% at end December 2016.

CRAR ratio was at comfortable level of 24.88% at end March 2017.

Branch network of the company increased to 4307 branches, after four quarters of decline, at end March 2017. Employee count increased to 24205 at end March 2017 from 24150 at end December 2016.

Book value of the company stood at Rs 163.1 per share at end March 2017 up from Rs 162.3 per share at end December 2016. Adjusted book value stood at Rs 151.6 per share at end March 2017 up from Rs 145.1 per share at end December 2016.

Subsidiaries

During the year, the company acquired 64.60% stake in equity share capital of Belstar Investment and Finance, an RBI registered micro finance NBFC. During the year, its loan portfolio grew by 114% at Rs 567 crore. It achieved a profit after tax of Rs 10 crore in FY2017 against Rs 6 crore in FY2016. Its Gross and Net NPA stood at 0.09% and 0.02% respectively end March 2017.

The company has acquired 100% stake in Muthoot Insurance Brokers, an IRDA registered Direct Broker in insurance products. It generated a First year premium collection amounting to Rs 70 crore during FY17 as against Rs 48 crore during previous year.

The company increased its shareholding in the housing finance company - Muthoot Homefin (India) from 79% to 88.27%. Its loan portfolio increased by Rs 409 crore at Rs 441 crore in FY2017. Total revenue for FY17 stood at Rs 24 crore as against previous year total revenue of Rs 2 crore. It achieved a profit after tax of Rs 2.87 crore in FY17 as against previous year profit after tax of Rs 1.36 lakh.

The company increased its shareholding in the Sri Lankan subsidiary - Asia Asset Finance PLC. It increased its loan portfolio by 26% at LKR 866 crore during the year. Total revenue for FY17 stood at LKR 213 crore as against previous year total revenue of LKR 139 crore. It generated a profit after tax of LKR 28 crore during the year as against previous year profit after tax of LKR 18 crore.

Annual Financial Performance:

For the year ended March 2017 (FY2017), Muthoot Finance reported 18% rise in Income from operations at Rs 5728.63 crore. Other income jumped 33% to Rs 18.07 crore in FY2017. The total income improved 18% to Rs 5746.70 crore. Interest expense increased 2% to Rs 2293.82 crore, while other expenses moved up 9% to Rs 1218.88 crore. Ensuing Gross profit surged 49% to Rs 2234.00 crore. Depreciation declined 16% to Rs 48.25 crore, while provision and write offs moved up 117% to Rs 264.78 crore. PBT jumped 46% to Rs 1920.97 crore. Effective tax rate stood at 35.6% compared to 35.3%. The final bottomline of the company galloped 46% to Rs 1179.82 crore in FY2017.