Gold loan major Muthoot Finance on Monday recorded a consolidated net profit of Rs 934 crore for Q3FY23 as compared with Rs 1,044 crore in the corresponding quarter of last fiscal, posting a decline of 10.5%.
Consolidated income of the company dropped by 4.3% at Rs 3, 030 crore as against Rs 3,168 crore. Consolidated loan assets under management increased to Rs 65,085 crore, up by 7% y-o-y, as against Rs 60,896 crore in the same quarter last year.
George Alexander Muthoot, MD of the firm, said, “Muthoot Finance registered a y-o-y growth of 6% in loan assets and marginal QoQ growth in gold loans of less than 1%. Yield on loan portfolio witnessed a QoQ increase of 0.84% consequent to stoppage of very low rate teaser loans.”
He added, “Borrowing cost slightly rose to 8.13% due to the impact of general increase in the interest rates with banks MCLR being constantly revised and fresh NCDs being raised at higher rates. Our continued focus on loan disbursements, recovery efforts and keeping our borrowing costs under check could enable us to maintain our NIMs in the range of 11-12%. Return on assets for the quarter improved to 6.27%.”
Muthoot Finance opened 54 new branches in Q3FY23 and raised Rs 422 crore through a public issue of secured redeemable non-convertible debentures.
George Jacob Muthoot, chairman, Muthoot Group, said,” The contribution of our subsidiaries to the overall consolidated AUM improved slightly to 12% and going ahead we expect the share of non-gold AUM to gradually rise. It is to be noted that despite the challenges, efforts by the NBFC sector have increased the visibility of gold loans as a safe and secured lending product. We are hopeful that our expertise in the product would help us capitalise on this positively in the coming quarters.”