Profit before tax advanced 14% to Rs 1,380 crore in Q3 FY24 as compared with Rs 1,207crore posted in Q3 FY23.

Loan assets (AUM) stood at Rs 71,182 crore as compared to Rs 57,731 crore in the same quarter last year, registering a growth of 23% YoY.

India's largest gold loan NBFC's consolidated net profit stood at Rs 1,103.52 crore in Q3 FY24, steeply higher than Rs 927.71 crore posted in Q3 FY23. While revenue from operations was at Rs 3,820 crore in third quarter ended December 2023, increased 26.92% year on year.

Muthoot Finance consolidated Loan Assets Under Management (AUM) grew 27% YoY to Rs 82,773 crore in Q3FY24 as against Rs 65,085 crore in the same quarter last year.

Meanwhile, the company’s board has approved additional equity infusion of Rs 300 crore in Belstar Microfinance, (Belstar) a subsidiary of the company and secondary purchase of equity shares of Belstar from the existing promoters for a consideration of upto Rs 75 crore.

George Jacob Muthoot, chairman, The Muthoot Group said, “We are glad to announce that our Consolidated Loan Assets Under Management crossed milestone of Rs. 80,000 crores and Standalone Loan Assets Under Management crossed milestone of Rs. 70,000 crores. The Consolidated Profit after Tax for 9M FY24 increased by 23% YoY at Rs. 3,285 crores. The contribution of subsidiaries in the Consolidated Profit after tax also increased to 9% from 4% last year. India’s favorable demographics, coupled with our policymakers focus on sustained economic growth presents a huge growth opportunity for us.

In line with our vision to emerge as a diversified financial business, we are consciously pivoting our efforts towards growing our non-gold loan book while maintaining our position as a frontrunner in the gold loan industry. We aim to capitalize on the strong growth opportunity in affordable housing, microfinance, personal loan and vehicle finance and grow the share of subsidiaries to 18%-20% in the next 5 years.

George Alexander Muthoot, managing director, Muthoot Finance said, "In Q3 FY24, the Standalone Loan AUM grew by Rs.2,180 crores, primarily driven by growth in Gold Loan of Rs.1,704 crores, reaching Rs.71,182 crores. The Standalone Profit after Tax for 9M FY24 increased by 16% YoY at Rs. 2,993 crores. In 9 months of this year, we achieved the highest ever Gold Loan advance to new customers of Rs.11,920 crores.

Among subsidiaries, housing finance arm could achieve disbursements of Rs.493 crores in 9M FY24 as against Rs.139 crores last year. The micro finance arm increased its Loan AUM by 65% YoY reaching Rs.8835 crores and Profit after Tax by 382% YoY of Rs.235 crores. Our non-gold loan businesses continue to do well, especially our micro finance loans, personal loans and home loans are helping us diversify our overall loan book. We have further added 156 branches in Q3, including in our subsidiaries, thus taking our overall branch network to 6325 as of end December 2023. Our phy-digital strategy is paying off well and nearly 40% of our gold loan customers have transacted via our digital channels. We will continue to leverage our extensive branch presence, along with digital offerings, to enhance customer engagement and meet their diverse needs with tailored financial solutions.”

Muthoot Finance is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, education and hospitality. It is India's largest gold loan focused NBFC.

The scrip declined 2.77% to Rs 1,341.55 on the BSE.