Muthoot Finance Registers 30 % Increase in Net Profit
Muthoot Finance Limited, the largest gold financing company in India in terms of loan portfolio, earned a net profit of Rs 351 crore, registering an increase of 30 per cent, for Q1 FY18 as against Rs 270 crore registered in the previous year.
Loan Assets registered an increase by Rs 574 Crore during Q1 FY18 which was an increase of two per cent and Rs 1,992 crore increase since last year which is an increase of eight per cent, with overall loan assets stood at Rs 27,852 crore at the end of June 30, 2017, a release said here today.
The Board has decided to acquire remaining 11.73 per cent holding with other shareholders in Muthoot Homefin (India) Limted at an aggregate price of Rs 38.72 crore, it said adding that with this acquisition, MHIL would become a wholly owned subsidiary.
The Board had further decided to infuse Rs 100 crore in MHIL as equity share capital.
During the quarter, its loan portfolio increased by Rs 155 crore at Rs 596 crore, the release said, adding that the total revenue for Q1 FY18 stood at Rs 19 crore as against previous year total revenue of Rs one crore. It achieved a profit after tax of Rs four crore in Q1 FY18 as against previous year loss of Rs 44 lakh.
The Sri Lankan subsidiary – Asia Asset Finance PLC. where Muthoot Finance holds 60 per cent stake , increased its loan portfolio during the quarter by five per cent at LKR 908 crore.
Total revenue for Q1 FY18 stood at LKR 59 crore as against previous year total revenue of LKR 45 crore, it added.
Commenting on the results, Chairman M G George Muthoot said the ‘’company could achieve a growth of Rs 574 crore in its loan assets during the quarter even in the backdrop of seemingly challenging external environment which shows that initiatives taken by the Company are delivering results. The profit after tax showed an increase of 30 per cent y-o-y at Rs 351 Crore , a historic record performance.”
Speaking on the occasion George Alexander Muthoot, Managing Director said, “Board has decided to make Muthoot Homefin (India) Limited as a wholly owned subsidiary. During the quarter, the housing finance company has grown its loan portfolio to Rs 596 crore and continues its stronger focus in the affordable housing segment.’’
The micro finance subsidiary which had a strong SHG model could increase its loan portfolio, during the quarter, by 11 per cent reaching Rs 628 crore, he said, adding that the NBFC in Sri Lanka could increased its loan portfolio by five per cent and the first year Premium collections in the Insurance Broking subsidiary have increased by 60 per cent y-o-y at Rs 16 crore, he added.
