Gold loan NBFC Muthoot Finance on Thursday reported a 59% year-on-year increase in its net profits for the three months to December to Rs 464 crore. The Kerala-based company, which is also the largest gold finance company, said that reduction in cost of funds and lower delinquency helped in achieving the highest quarterly net profit. Net profit for the comparable period of last fiscal stood at Rs 291 crore. Sequentially, the net profit increased marginally from Rs 454 crore reported in the Q2 of the current fiscal. Total income increased by 16% year-on-year to touch Rs 1,567 crore. Gross loan assets under management of the group, which also operates home loan, microfinance and insurance broking subsidiaries, achieved a year-on-year increase of 10% at Rs 30,712 crore as against Rs 28,005 crore a year ago. Gold loan outstanding at the end of the nine months of the current fiscal stands at Rs 28,097 crore as against Rs 26,902 crore a year ago.
Managing director George Alexander Muthoot said, “Focus on interest collection at regular intervals has helped us lower defaults and reduce the loss in auctions. The cost of fund has also come down by 1.5% in the last one year, helping us in achieving a record performance. The credit offtake has improved when compared to last year and will pick up further. We estimate a consolidated 15% growth in the coming year”.