Muthoot Cap Q3 net drops 23% to Rs 19 crore

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Updated: January 28, 2020 11:11:24 AM

Total income touched Rs 150.9 crore, as per the unaudited financial results, approved by the MCSL board of directors.

According to Madhu Alexiouse, COO, MCSL, spreading out the used car business to diverse locations in the country helped survive the slowdown in demand.

Muthoot Capital Services (MCSL) reported a 22.78% drop in its net profit to Rs 19 crore for the third quarter of 2019 against Rs 24.5 crore a year ago.

MCSL’s sales, however, rose 11.47% to Rs 150.69 crore in the quarter against Rs 135.18 crore a year ago. Total income touched Rs 150.9 crore, as per the unaudited financial results, approved by the MCSL board of directors.

Thomas George Muthoot, managing director, MCSL, said the company is happy with the profitability, with the “steady state of the business” and with “the continuation of our planned spread into newer geographies”. “We have been cautious in our lending process and while growth opportunities existed due to many other lenders vacating the market, we have been careful to avoid bad portfolio and over-aggression in these testing times,” Muthoot said.

Meanwhile, he is optimistic that “while the auto industry is still reeling under severe slowdown”, market sentiments would pick up soon.

The company disbursed two-wheeler loans of about Rs 460.7 crore and had a total disbursement of Rs 465.8 crore in Q3. Total assets under management reached Rs 2,751 crore, including the assigned portfolio of Rs 73.3 crore. A year ago, the company had a total disbursement of Rs 502.1 crore and AUM was at Rs 2,593.6 crore. During the same quarter last year, the company reported a total revenue of Rs 135.2 crore.

According to Madhu Alexiouse, COO, MCSL, spreading out the used car business to diverse locations in the country helped survive the slowdown in demand. “We have covered about 17 locations across South and West regions and expect to add 3-4 more locations by March 2020,” he says.

Recently, MCSL had raised Rs 578.81 crore through securitisation and direct assignment transactions during the current fiscal. “Similar transactions are planned in the current quarter and the company hopes to cross Rs 1,000 crore worth DA/securitisation in the current financial year,” says Vinod Panicker, CFO, MCSL.

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