Muthoot Microfin on Tuesday posted a 119.1% y-o-y jump in its net profit in the December quarter due to a robust growth in its gross loan portfolio. Net profit stood at Rs 124.6 crore, up 13.7% quarter-on-quarter (q-o-q).
This marks the company’s first earnings disclosure following its listing in December.
Gross loan portfolio rose nearly 39% y-o-y to Rs 11, 458 crore as on December 31. Net interest income, the difference between interest earned and interest expended, rose 53.1% y-o-y to Rs 343.1 crore, aided by a growth in gross loan portfolio.
The company’s loan disbursements rose 19.4% y-o-y to Rs 2,592 crore and the number of borrowers rose to 3.3 million as on December 31 from 2.6 million a year ago.
Net interest margin rose 86 basis points (bps) y-o-y to 12.60% in the December quarter. Separately, the gross non-performing asset ratio fell 120 bps y-o-y to 2.29% as on December 31.
Return on assets rose to 4.5% in the December quarter from 2.9% a year ago aided by the rise in margins and improvement in asset quality.
“Our dedication to providing innovative and tailored financial solutions with technological advancements have been instrumental in achieving these commendable results,” says Sadaf Sayeed, CEO, Muthoot Microfin.
Sayeed added that all the key indicators are showing tremendous growth and the macro-economic outlook of the country is favourable to sustain this growth rate.