Muthoot Finance Ltd's Q4FY18 standalone net profit rises 40.28% yoy to Rs451.40cr : In-line with Estimates

India Infoline Research Team | May 21, 2018 15:41 IST

The company’s standalone NII stood at Rs1,101.40cr, down 5.35% yoy but up 1.53% qoq.

Muthoot Finance Ltd Q4FY18

Standalone Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
NII 1,101.40 [5.4]
Net Profit (adjusted) 451.40 40.3

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Reco. Price

437

Last updated on

09-May-2018


Muthoot Finance Ltd's revenue has declined by 6.1% yoy to Rs1,608cr. Its NII came at Rs1,101.4cr as against Rs1,163.6cr, which has declined by 5.4% yoy. Its net profit came at in-line with estimates at Rs451.4cr against Rs321.8cr, which has improved by 40.3% yoy. 


  • Its sources of funding as of FY18 end is as follows: Secured Non-Convertible Debentures - 4.1%, Secured Non-Convertible Debentures - 20.6%, Borrowings from Banks/FIs - 52.6%, Subordinated Debt - 3.5%, Subordinated Debt - 1.8%, Commercial Paper - 13.3% and Other Loans - 4.1%.
  • Gold Loan Assets Under Management as of FY18 end is at Rs28,800cr.
  • Gold jewellery kept as security as of FY18 end is at 155 Mt.
  • Its average gold loan per branch for Q4FY18 came at Rs6.67cr.
  • Yields and NIM for FY18 came at 21.7% and 14.75% respectively, whereas for Q4FY18 it came at 21.33% and 15.03%.
  • Its capital adequacy as of FY18 end stood at 26.59%.
  • The provisions for the quarter came at Rs56.4cr as against Rs3.9cr yoy.
  • Muthoot Finance Ltd's consolidated gross loan assets under management of the group achieved a yoy increase of 10% to Rs30,712cr as against last year of Rs28,005cr yoy.
  • Its Capital Adequacy Ratio as on Q4FY18 stood at 27.65%.
  • Yields have declined by 360bps yoy to 21.6%.
  • Cost of funds have declined 10bps and 190bps qoq and yoy to 8.6% respectively. NIMs have contracted by 110bps yoy to 16.1% during the quarter.
  • The share of term loans during the quarter have decreased from 57% to 53% sequentially, while that of Commercial Paper has increased from 7% to 13%.
  • Management Guidance - Home finance has AUM of Rs1,400cr, is expected to reach 2,500cr by FY20E. Microfinance has AUM of Rs1,100cr is expected to be Rs1,800 by FY20E. Gold loan portfolio should grow at ~15%.
  • It is considering entering into vehicle finance and personal finance by 2HFY19.
  • It has moved to 90dpd from 120dpd and the impact was Rs400cr on account of change in the process from 120dpd to 90dpd.
  • Borrowing cost is ~8.5% and will likely remain around this level. CoF in 4QFY18 was 8.25%.
  • The company expects ROA of ~4% over the medium term.

Technical View:

Muthoot Finance Ltd is currently trading at Rs. 408.40, down by 12.05 points or 2.87% from its previous closing of Rs. 420.45 on the BSE.
The scrip opened at Rs. 408.95 and has touched a high and low of Rs. 414.65 and Rs. 401.05 respectively. So far 1,47,916 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.


***Note: This is a NSE Chart

 

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