Muthoot Finance

Loan growth accelerates to 29%

Nov 04, 2020 08:11 IST capital market

Muthoot Finance has recorded 3% growth in the net profit on consolidated basis to Rs 926.08 crore for the quarter ended September 2020 (Q2FY2021) over a corresponding quarter of last year. Income from operations improved 17% to Rs 2824.2 crore in the quarter ended September 2020. Interest expense increased 34% to Rs 1028.18 crore, while other expenses (including staff cost of Rs 297.67 crore and other expenses of Rs 210.36 crore) moved up 11% to Rs 508.03 crore. Ensuing Gross profit improved 9% to Rs 1287.99 crore in Q2FY2021 over Q2FY2020.

Depreciation rose to Rs 15.6 crore in Q2FY2021 from Rs 13.49 crore in Q2FY2020, while provision and write offs declined to Rs 28.11 crore in Q2FY2021 from Rs 52.3 crore in Q2FY2020. PBT increased 11% to Rs 1244.28 crore.

Effective tax rate increased to 25.2% in Q2FY2021 from 18.6% in Q2FY2020. The net profit of the company rose 3% to Rs 926.08 crore in the quarter ended September 2020.

Business performance

Gross retail loan AUM of the company increased 32% yoy to Rs 47016 crore at end September 2020. Non-gold loans declined 1% to Rs 782 crore of AUM at end September 2020.

The net Interest margin (NIM) of the company, on calculated basis, dipped by -244 bps on sequential basis to 13.72% in Q2FY2021.

Gross stage 3 assets of the company declined to 1.26% at end September 2020 from 2.56% a quarter ago. ECL Provisions % of Gross Loan Assets eased to 1.20% at end September 2020 from 1.34% a quarter ago.

CRAR ratio was at comfortable level of 25.73% at end September 2020.

Branch network of the company increased to 5381 branches, after four quarters of decline, at end September 2020. Employee count increased to 25987 at end September 2020 from 25430 a quarter ago.

Consolidated Loan Assets under management increased 29% to Rs 52286 crore end September 2020 from Rs 40390 crore end September 2019

The loan book of Muthoot Homefin (India) declined to Rs 1938 crore end September from Rs 2098 crore a year ago. Its Stage III Asset on Gross Loan Asset % stood at 1.71%. Company also made a Covid ECL provision of Rs 17 crore additionally.

Belstar Microfinance (BML), grew its loan portfolio to Rs 2687 crore from Rs 2107 crore, Its Stage III Asset on Gross Loan Asset % stood at 0.62%. Company also made a Covid ECL provision of Rs 11.14 crore additionally.

Muthoot Insurance Brokers (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs 106 crore in Q2FY2021 & Rs 150 crore in H1FY2021.

The Sri Lankan subsidiary - Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 72.92% stake, loan portfolio stood at LKR 1,298 crore as against LKR 1,314 crore last year.

Book value of the company stood at Rs 336.5 per share, while adjusted book value (adjusting for net stage 3 assets) stood at Rs 335.8 per share at end September 2020.

Financial Performance H1FY2021:

For the six months ended September 2020 (H1FY2021), Muthoot Finance reported 22% rise in Income from operations at Rs 5425.51 crore. Other income declined -59% to Rs 5.51 crore in H1FY2021. The total income improved 21% to Rs 5431.02 crore. Interest expense increased 34% to Rs 2000.24 crore, while other expenses moved up 3% to Rs 934.20 crore.

Ensuing Gross profit galloped 20% to Rs 2496.58 crore. Depreciation moved up 15% to Rs 29.62 crore, while provision and write offs rose 3% to Rs 71.19 crore. PBT jumped 21% to Rs 2395.77 crore. Effective tax rate was steady at 25.3% compared to 25.7%. The minority interest declined -44% to Rs 8.89 crore. The final bottomline of the company inched up 22% to Rs 1779.60 crore in H1FY2021.

Muthoot Finance: Consolidated Results

 

Particulars 2009 (3) 1909 (3) Var % 2009 (6) 1909 (6) Var % 2003 (12) 1903 (12) Var %
Income from operations 2821.03 2397.38 18 5425.51 4465.05 22 9683.98 7594.43 28
Other Income 3.17 9.02 -65 5.51 13.46 -59 23.29 6.62 252
Total Income 2824.20 2406.39 17 5431.02 4478.51 21 9707.27 7601.05 28
Interest Expenses 1028.18 765.88 34 2000.24 1498.30 34 3172.84 2535.47 25
Other expenses 508.03 458.73 11 934.20 905.97 3 2027.71 1686.51 20
Gross profit 1287.99 1181.78 9 2496.58 2074.24 20 4506.72 3379.07 33
Depreciation 15.60 13.49 16 29.62 25.80 15 59.24 51.69 15
Profit before tax and Provisions 1272.39 1168.29 9 2466.96 2048.44 20 4447.48 3327.38 34
Provisions and write off 28.11 52.30 -46 71.19 68.80 3 187.08 67.85 176
Profit before tax 1244.28 1115.99 11 2395.77 1979.64 21 4260.40 3259.53 31
Provision for tax 313.48 207.45 51 607.28 507.79 20 1091.71 1156.57 -6
PAT 930.79 908.54 2 1788.48 1471.84 22 3168.69 2102.96 51
Minority Interest 4.72 8.73 -46 8.89 15.86 -44 30.44 24.95 22
PAT after MI 926.08 899.82 3 1779.60 1455.99 22 3138.25 2078.01 51
EPS*(Rs) 92.4 89.7 88.7 72.6 78.3 51.8
* Annualized on current equity of Rs crore. Face Value: Rs 10, Figures in Rs Crore
Source: Capitaline Corporate Database

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