The company adopted Indian Accounting Standards (Ind AS) with effect from 1 April 2018. Results of Q1FY19 are prepared and reported in compliance with Ind AS requirements. Additionally, for the same quarter of previous year (Q1FY18), figures have been recast as per Ind AS requirements.

The net profit for Q1FY2018 was nearly flat at Rs 345.9 crore under Ind AS compared with Rs 351.1 crore under IGAAP. The net worth under Ind AS has been marginally lower at Rs 6501.9 crore end June 2017 compared with Rs 6516.4 crore under IGAAP.

Income from operations improved 19% to Rs 1632.99 crore in the quarter ended June 2018. Interest expense declined 2% to Rs 501.56 crore, while other expenses (including staff cost of Rs 216.87 crore and other expenses of Rs 147.8 crore) moved up 22% to Rs 364.67 crore. Ensuing Gross profit improved 36% to Rs 766.76 crore in Q1FY2019 over Q1FY2018.

Depreciation declined to Rs 9.11 crore in Q1FY2019 from Rs 10.43 crore in Q1FY2018, while provision and write offs fell to Rs 2.65 crore in Q1FY2019 from Rs 12.59 crore in Q1FY2018. PBT increased 39% to Rs 755 crore.

Effective tax rate eased to 34.9% in Q1FY2019 from 36.4% in Q1FY2018. The net profit of the company increased 43% to Rs 491.56 crore in the quarter ended June 2018.

Business performance

Gross retail loan AUM of the company increased 11% yoy to Rs 30997 crore at end June 2018. Non-gold loans moved up 466% to Rs 435 crore of AUM at end June 2018.

The net Interest margin (NIM) of the company, on calculated basis, improved by 212 bps yoy to 14.24% in Q1FY2019.

Gross NPA declined to 4.56% at end June 2018 from 6.98% at end March 2018.

CRAR ratio was at comfortable level of 26.44% at end June 2018.

Branch network of the company increased to 4344 branches, after four quarters of decline, at end June 2018. Employee count increased to 23623 at end June 2018 from 23455 at end March 2018.

Book value of the company stood at Rs 207.6 per share at end June 2018 and adjusted book value stood at Rs 200.3 per share at end June 2018.

Subsidiaries

Muthoot Homefin, the wholly owned subsidiary, posted strong 172% surge in its loan portfolio to Rs 1621 crore end June 2018 from Rs 596 crore end June 2017, while the loan portfolio increased by Rs 156 crore or 11% over March 2018. Total revenue for Q1FY19 stood at Rs 50 crore as against total revenue of Rs 19 crore in Q1FY18. It achieved a net profit of Rs 11 crore in Q1FY19 as against net profit of Rs 4 crore in Q1FY18. Its Gross and Net NPA stood at 0.51% and 0.43% end June 2018.

Belstar Investment and Finance, an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 71.16% stake, grew its loan portfolio to Rs 1236 crore as against last year of Rs 665 crore, a YoY increase of 86%. During the quarter, loan portfolio increased by Rs 99 crore, recording QoQ growth of 9%. It achieved a profit after tax of Rs 14 crore during Q1FY19 as against profit after tax of Rs 5 crore in Q1FY18. Its Gross and Net NPA stood at 0.83% and 0.45% end June 2018.

Muthoot Insurance, an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a First year premium collection amounting to Rs 49 crore during Q1FY19 as against Rs 16 crore in Q1FY18. It generated a Profit after Tax of Rs 2 crore during Q1FY19 as against Rs 1 crore in Q1FY18.

The Sri Lankan subsidiary - Asia Asset Finance PLC (AAF) where Muthoot Finance holds 60% stake, increased its loan portfolio to Rs 462 crore as against last year of Rs 383 crore, a YoY increase of 21%. During the quarter, loan portfolio increased by Rs 47 crore, recoding QoQ growth of 11%. Total revenue for Q1FY19 stood at Rs 29 crore as against total revenue of Rs 25 crore in Q1FY18. It generated a profit after tax of Rs 0.68 crore during Q1FY19 as against profit after tax of Rs 2.39 crore in Q1FY18.