Gold loan NBFC Muthoot Finance on Tuesday reported a 30% increase in its net profit at Rs 351 crore for the June quarter, compared with Rs 270 crore in the year-ago period.
Gold loan NBFC Muthoot Finance on Tuesday reported a 30% increase in its net profit at Rs 351 crore for the June quarter, compared with Rs 270 crore in the year-ago period. Better interest collection and declining cost of borrowing helped the company perform better, George Alexander Muthoot, managing director, told FE. He said the company is looking at an AUM growth of 10-15 % for the fiscal.
Outstanding gold loan during the quarter in review increased by 8% to Rs 27,775 crore. Total income for the period stood at `1,399 crore, which is an increase of 8% over Rs 1,301 crore a year ago. Sequentially, income declined by 18%, from Rs 1,713 crore during Q4 of FY17. Company officials said the average cost of borrowing is currently 9.5% and is expected to decline as high-cost legacy deposits are replaced with lower cost capital.
The average loan ticket size decreased marginally for the quarter under review to Rs 37,196 from Rs 37,417. Gold jewellery pledged stood at 152 tonne at the end of the quarter. Number of loan accounts recorded a growth of 9% to 75 lakh during the Q1 of FY 18 when compared with the corresponding quarter of the previous fiscal.
The board of Muthoot Finance has decided to acquire remaining 11.73% holding with other shareholders in Muthoot Homefin (India) at an aggregate price of Rs 38.72 crore. With this acquisition, MHIL will become a wholly owned subsidiary.