Muthoot Finance Ltd on Wednesday reported its third quarter earnings for the financial year 2023-24 with profit at Rs 1103.52 crore, up 19 per cent in comparison to Rs 927.71 crore during the third quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 3820.02 crore, up 26.9 per cent as against Rs 3009.60 crore during the corresponding quarter of previous year. The company’s Loan Assets Under Management increased by Rs 3,280 crore, i.e., an increase of 4 per cent QoQ. According to a CNBC TV18 poll, Muthoot Finance was expected to report Q3FY24 profit at Rs 958.8 crore and NII was estimated at Rs 1871.5 crore.
George Jacob Muthoot, Chairman, The Muthoot Group, said, “We are glad to announce that our Consolidated Loan Assets Under Management crossed a milestone of Rs 80,000 crore and Standalone Loan Assets Under Management crossed a milestone of Rs 70,000 crores. While the Consolidated Loan Assets Under Management increased by 27 per cent YoY, the contribution of subsidiaries increased to 14 per cent from 12 per cent last year.”
“The contribution of subsidiaries in the consolidated profit after tax also increased to 9 per cent from 4 per cent 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 per cent in the next 5 years,” he added.
George Alexander Muthoot, Managing Director, Muthoot Finance, said, “Among subsidiaries, the housing finance arm could achieve disbursements of Rs 493 crore in 9M FY24 as against Rs 139 crore last year. The micro finance arm increased its Loan AUM by 65 per cent YoY reaching Rs 8835 crore and Profit after Tax by 382 per cent YoY of Rs 235 crore. We are confident that the resilient Indian economy coupled with government thrust on capex, pick up in investment activity and uptrend in rural demand will keep the gold loan demand strong, and are well poised to achieve our guidance of growing our loan book by 15 per cent in FY24. In addition, our non-gold loan businesses continue to do well, especially our microfinance loans, personal loans and home loans are helping us diversify our overall loan book.”
The company has added 156 branches in Q3, including in its subsidiaries, thus taking the 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,” said George Alexander Muthoot.