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Muthoot Finance reports 14% rise in Q1 consolidated net

The company, which also operates a home loan, microfinance and insurance broking subsidiaries, said the net profit of the gold loan division increased 16% y-o-y to Rs 971 crore, and the share in the consolidated profit increased to 99%.

Muthoot Finance reports 14% rise in Q1 consolidated net
The loan assets under management fell by Rs 145 crore q-o-q as the company decided to go slow on non-gold business.

NBFC Muthoot Finance on Friday reported a 14% year-on-year (y-o-y) increase in its first quarter consolidated net profit to Rs 979 crore, largely due to good performance of the gold loan division. Consolidated loan assets under management increased 25% y-o-y to Rs 58,135 crore against Rs 46,501 crore in the year-ago period.

The company, which also operates a home loan, microfinance and insurance broking subsidiaries, said the net profit of the gold loan division increased 16% y-o-y to Rs 971 crore, and the share in the consolidated profit increased to 99%.

On a sequential basis, the total income of the gold loan division decreased by 4% to Rs 2,715 crore and the net profit declined by 3% quarter-on-quarter from Rs 996 crore reported in Q4 FY21. The loan assets under management fell by Rs 145 crore q-o-q as the company decided to go slow on non-gold business.

George Alexander Muthoot, MD, said: “We consciously decided to go slow in terms of non-gold lending business on account of continued uncertainty and emerging uncertain credit behaviour. We are redrawing our strategies in terms of non-gold lending business and we are confident to emerge stronger as environment improves. On the gold loan front, we are targeting 15% growth in the remaining three quarters.”

Loan assets of the gold loan division for the quarter stood at Rs 52,614 crore, compared to Rs 41,296 crore in the year-ago period, growing 27%.

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