The two-wheeler buyer in North has played the white knight for Muthoot Capital Services (MCSL), in a financial quarter ravaged by the after-effects of the floods and Gaja cyclone in South. Backed by its \u201cSouth de-risking strategy\u201d, MCSL has clocked 48% growth in net profit in the third quarter, surging to Rs 23.3 crore in the current Q3 from Rs 15.7 crore net profit in the corresponding period previous year. MCSL is the two-wheeler financing company of Rs 3,500-crore Muthoot Pappachan Group. For the current Q3, MCSL commands a return on equity of 20.8% and return on asset is 4.3%. We had apprehensions over the shrinking market, following the price hike in two-wheeler sector in September-October. Considering the NBFC liquidity crunch, we decided to tread with greater caution and feared fall in volumes. This was on the top of the aftermath of Kerala floods and Tamil Nadu cyclone. But what worked in fetching fresh business was the strategy of spreading out to the non-South markets,\u201d Vinod Panicker, chief financial officer, MCSL, told FE. READ ALSO |\u00a0Kumbh Mela 2019: Second shahi snan of Kumbh being held today on occasion of Paush Purnima In Northeast (mainly Assam, West Bengal and Odisha), MCSL\u2019s business grew as high as 220% and in the Western India (mainly in Gujarat and Maharashtra), it grew 68% over the previous year. \u201cDuring the Q3 of previous year, if the North to South ratio of MCSL's business was 20:80, this ratio has shifted to 37:63 this quarter in a planned manner. This has been a factor in the 99% growth in the net profit during the 9-month period, ending December 2018. From `32.2 crore in December 2017, the net profit ( in the 9-month period) had zoomed to `64.1 crore in the same period in 2018,\u201d Panicker said. The total income for the 9-month period was `398.6 crore against `279.3 crore in the same period last year \u2013 a growth of 43% \u2013 according to the unaudited financial results. The company disbursed vehicle loans accounting to `493.1 crore and had a total disbursement of `502.1 crore during the quarter. The total AUM (assets under management) reached `2,595.9 crore at the end of the quarter, including the securitised portfolio of `438.3 crore. In the last quarter, we saw two securitisations and two fresh sanctions coming in, and with a much better pipeline, we are hoping for an even better Q4.\u201d said Thomas George Muthoot, managing director, MCSL. Recently, the company had also made a foray into used car credit segment. Digitisation too seems to have paid off. \u201cWithin 3 months of launch of our customer app Mpower, we got more than 40,000 downloads and picked up `1 crore as EMIs and over 300 loan applications,\u201d said Madhu Alexiouse, CEO, MCSL.