Muthoot Microfin's net profit in March quarter up y-o-y by 27%

7 May 2024 , 01:15 PM

Muthoot Microfin, the microfinance subsidiary of Muthoot Pappachan Group, recorded a 27% YoY increase in net profit to ₹119.76 Crore for Q4 ending March 31, 2024.

Net interest income (NII) surged by 47% to ₹400 Crore in Q4 FY24 from ₹272 Crore in the same period last year. Gross non-performing asset (GNPA) remained at 2.29% in Q4, while net NPA stood at 0.35%.

Gross NPA was ₹220.8 Crore and net NPA was ₹32.9 Crore in Q4. Net interest margin (NIM) stood at 13.5% YoY and 12.6% quarter-on-quarter. Disbursements rose by 18% to ₹2,887.9 Crore, with Assets Under Management (AUM) increasing by 32.4% YoY to ₹12,193.5 Crore.

Disbursal to AUM ratio improved to 25.5% from 22.8% in the previous quarter. Pre-provision operating profit (PPOP) surged by 75.11% YoY to ₹763.80 Crore. Liquidity remained robust at ₹957.66 Crore of unencumbered cash and cash equivalents, alongside unutilized sanctions totaling ₹2,119 Crore.

At the time of writing, stocks of Muthoot Microfin were trading at ₹237.60 which is a 2.90% dip than the previous close. The stock has witness a 10% dip in the past one year, and 6% drop since the beginning of the year.

Thomas Muthoot, Managing Director, highlighted improved operational efficiencies, stable NIMs, and robust asset quality. Return on Assets (ROA) doubled to 4.19% in FY24, with ROE surpassing annual guidance due to improved profitability.

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