Income from operations declined 6% to Rs 1608.03 crore in the quarter ended March 2018. Interest expense dipped 18% to Rs 449.55 crore, while other expenses (including staff cost of Rs 209.5 crore and other expenses of Rs 145.55 crore) moved up 10% to Rs 355.05 crore. Ensuing Gross profit fell 5% to Rs 803.43 crore in Q4FY2018 over Q4FY2017.

Depreciation declined to Rs 11.35 crore in Q4FY2018 from Rs 13.32 crore in Q4FY2017, while provision and write offs plunged Rs 59.64 crore in Q4FY2018 from Rs 243.02 crore in Q4FY2017. PBT increased 24% to Rs 732.44 crore.

Effective tax rate eased to 38.4% in Q4FY2018 from 45.4% in Q4FY2017. The net profit of the company increased 40% to Rs 451.39 crore in the quarter ended March 2018.

Business performance

Gross retail loan AUM of the company increased 7% yoy to Rs 29138 crore at end March 2018. Non-gold loans moved up 395% to Rs 290 crore of AUM at end March 2018.

The net Interest margin (NIM) of the company, on calculated basis, eased to 15.03% in Q4FY2018 from 15.09% in previous quarter and 17.01% in the corresponding quarter last year.

Gross NPA increased to 6.98% at end March 2018 from 5.62% at end December 2017. Meanwhile, Net NPA also increased to 6.16% at end March 2018 from 4.93% at end December 2017.

CRAR ratio was at comfortable level of 26.59% at end March 2018.

Branch network of the company increased to 4325 branches at end March 2018. Employee count increased to 23455 at end March 2018 from 22933 at end December 2017.

Book value of the company stood at Rs 194.0 per share at end March 2018. Adjusted book value stood at Rs 149.1 per share at end March 2018.

Subsidiaries

Muthoot Homefin, the wholly owned subsidiary , increased its loan portfolio to Rs 1465 crore end March 2018 from Rs 440.8 crore end March 2017. Total revenue jumped to Rs 126 crore in FY2018 from Rs 24 crore in FY2017. It achieved a net profit of Rs 28 crore in FY18 as against previous year profit of Rs 3 crore.

Belstar Investment and Finance, an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 66.61% stake, grew its loan portfolio by 97% to Rs 1137 crore end March 2018. It achieved a profit after tax of Rs 34 crore during FY18 as against previous year profit after tax of Rs 10 crore. Its Gross and Net NPA stood at 0.76% and 0.30% end March 2018.

Muthoot Insurance Brokers, an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a First year premium collection amounting to Rs 101 crore during FY18 as against Rs 70 crore in the previous year. It generated a Profit after Tax of Rs 11 crore during FY18 as against Rs 6 crore in the previous year.

The Sri Lankan subsidiary - Asia Asset Finance PLC (AAF) where Muthoot Finance holds 60% stake, increased its loan portfolio during the year by 13% at LKR 995 crore. Total revenue for FY18 stood at LKR 256 crore as against previous year total revenue of LKR 213 crore. It generated a profit after tax of LKR 20 crore during FY18 as against previous year profit after tax of LKR 28 crore.

Annual Financial Performance:

For the year ended March 2018 (FY2018), Muthoot Finance reported 8% rise in Income from operations at Rs 6161.83 crore. Other income jumped 350% to Rs 81.37 crore in FY2018. The total income improved 9% to Rs 6243.20 crore. Interest expense declined 15% to Rs 1939.93 crore, while other expenses moved up 5% to Rs 1262.70 crore. Ensuing Gross profit increased 35% to Rs 3040.57 crore. Depreciation declined 9% to Rs 43.85 crore, while provision and write offs dipped 15% to Rs 239.65 crore. PBT jumped 44% to Rs 2757.07 crore. Effective tax rate stood at 37.6% compared to 38.6%. The final bottomline of the company inched up 46% to Rs 1720.26 crore in FY2018.