Muthoot Finance Q1 results: Net profit jumps 52% to Rs 858 cr

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New Delhi: Muthoot Finance on Wednesday reported a 52 per cent soar in its consolidated web revenue at Rs 858 crore within the first quarter ended June of the present fiscal 12 months.

The non-banking finance firm had posted a web revenue of Rs 563 crore through the corresponding quarter a 12 months in the past.

Complete earnings rose 25.Eight per cent to Rs 2,606.82 crore throughout April-June quarter of 2020-21 as towards Rs 2,072.11 crore in the identical interval a 12 months in the past, Muthoot Finance mentioned in a regulatory submitting.

Consolidated gross mortgage property of the corporate elevated 16 per cent to Rs 46,501 crore as on June 30, 2020 as towards Rs 40,228 crore a 12 months in the past.

Muthoot Finance is principally engaged in gold financing enterprise. It additionally has presence in residence and mortgage financing, micro-financing, insurance coverage broking enterprise by way of varied subsidiaries, apart from having an asset finance subsidiary in Sri Lanka.

On a standalone foundation, the corporate’s web revenue throughout Q1FY21 registered a 59 per cent progress at Rs 841 crore as towards Rs 530 crore within the year-ago interval.

“Our branches had been utterly shut through the month of April attributable to nationwide lockdown. To make sure enterprise continuity we upscaled our digital platforms. We recorded four-fold soar in digital mortgage disbursals since then,” Muthoot Finance Chairman M G George Muthoot mentioned.

“To encourage digital utilization, we’re incentivizing our prospects with a cashback scheme to service curiosity funds by way of our on-line platforms,” he added.

With companies resuming, the corporate has witnessed a surge in gold loans as it’s the most handy type of availing working capital for small companies and merchants, he mentioned.

The corporate’s gold mortgage excellent grew 15 per cent from a 12 months in the past to Rs 40,495 crore as on June 30, 2020.

The corporate’s managing director George Alexander Muthoot mentioned, “Our disbursement through the quarter was decrease on account of closure of branches within the month of April 2020 attributable to nationwide lockdown.

“As soon as the branches opened, we noticed larger degree of repayments than disbursements, in all probability, on account of restrictions in motion of individuals.”

He mentioned the corporate has witnessed a major enhance in disbursements since June 2020 which has continued in July and August.

“As initially guided, we’re trying ahead to attain a 15 per cent progress in gold mortgage portfolio for FY21. Firm additionally maintained a liquidity buffer of Rs 8,477 crore as money, financial institution and investments in liquid funds as on June 30, 2020,” he mentioned.

Muthoot Finance’s non-gold mortgage portfolio in subsidiaries constituted about 12 per cent of its consolidated mortgage portfolio.

Collections in non-gold mortgage portfolio have considerably improved month-on-month, the corporate mentioned.

Extra COVID-19 provisions to the extent of Rs 32 crore had been made for non-gold mortgage portfolio within the quarter, George mentioned.

Shares of Muthoot Finance on Wednesday closed 1.32 per cent larger at Rs 1,256 apiece on the BSE.

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