Profit before tax in Q1 June 2020 stood at Rs 1,151.48 crore, up by 33.3% from Rs 863.64 crore in Q1 June 2019. Current tax expenses decreased by 8.5% year-on-year (YoY) to Rs 276.89 crore during the quarter.

Consolidated loan assets under management achieved a YoY increase of 16% to Rs 46,501 crore as at Q1 FY21 as against last year of Rs 40,228 crore. Sequentially, consolidated loan assets under management decreased by Rs 370 crore.

On a standalone basis, Muthoot Finance registered an increase in net profit of 59% at Rs 841 crore for Q1FY21 as against Rs 530 crore for Q1FY20. Loan assets stood at Rs 41,296 crore compared to Rs 35,816 crore previous year, Y-o-Y growth of 15%. Sequentially, loan assets decreased by Rs 315 crore in Q1FY21 on account of closure of branches during April 2020 due to pan-India lockdown in the wake of Covid-19 pandemic.

Commenting on the results M G George Muthoot, chairman stated, "At a time when pandemic has disrupted business activities across the globe, we with the support of our employees, customers and lenders have been able to continue excellence in our performance. Company could achieve a 59% YoY increase in profit after tax of Rs 841crore for the quarter. Our branches were completely shut during the month of April due to nationwide lockdown.

To ensure business continuity we upscaled our digital platforms. We recorded four-fold jump in digital loan disbursals since then. To encourage digital usage, we are incentivizing our customers with a cashback scheme to service interest payments through our online platforms. With businesses resuming, we have witnessed surge in gold loans as it is the most convenient form of availing working capital for small business and traders to kickstart their businesses."

Speaking on the occasion George Alexander Muthoot, managing director said, "Our disbursements during the quarter was lower on account of closure of branches in the month of April 2020 due to nationwide lockdown. Once the branches opened, we saw higher level of repayments than disbursements, probably, on account of restrictions in movement of people. However, we witnessed a significant increase in disbursements since June 2020 which continues in July and August 2020.

As initially guided, we are looking forward to achieve a 15% growth in gold loan portfolio for FY21. Company also maintained a liquidity buffer of Rs 8,477 crore as cash, bank and investments in liquid funds as on 30 June 2020. Non-gold loan portfolio in subsidiaries constituted about 12% of consolidated loan portfolio.

Collections in non-gold loan portfolio have significantly improved month on month. Additional COVID-19 ECL (expected credit loss) provisions to the extent of Rs 32 crore were made for non-gold loan portfolio in the quarter."

Muthoot Finance is the largest gold financing company in India in terms of loan portfolio.