Gold loan NBFC Muthoot Finance has registered a year-on-year decline of 14 % in net profit due to higher depreciation provision necessitated by the new Companies Act.
The largest gold financing company in India in terms of loan portfolio, registered a net profit of R165 crore for the quarter ended March 31, 2015, and R671 crore for the fiscal. Total income during the fiscal ended March 2015 declined 13 % to R4,325 crore against R4,947 crore for the fiscal ended March 2014.
The company said that despite sluggishness in the economy, it did well in the last quarter of fiscal 2015 by growing the loan portfolio by R1,320 crore. “We expect the growth momentum to continue in the new fiscal. Sequentially, net profit has increased during the quarter by 7%. The business is back on track with loan growth consistently in the last three quarters,” George Alexander Muthoot, MD of Muthoot Finance, said.
The board has also decided its entry into housing loan business by investing up to R50 crore in Muthoot Homefin (India), a registered housing finance company with National Housing Bank.