Muthoot Finance Q1 Results: Net profit increases by more than 21% year over year to Rs 975.12 crore

14 Aug 2023 , 10:54 AM

India’s Muthoot Finance reported quarterly profit growth for the first time in six quarters as demand for gold loans increased due to record-high prices.

The gold finance company reported that for the first quarter ended June 30, its earnings increased by more than 21% to Rs 975.12 crore.

The gap between interest paid and generated by Muthoot increased by 19.2% to Rs 2,957.7 crore. This quarter, gold prices reached record-high levels. As a result, credit sizes for gold loans increased, which benefited lenders.

According to the company’s report, the average loan ticket size increased by 14% year over year in the quarter while the total weight of gold jewellery pledged increased by 2%.

Earlier in the week, Manappuram announced a 76% increase in Q1 profit.

In a statement, George Jacob Muthoot, chairman of the Muthoot Group, said, ‘We continue to foresee improved demand conditions for gold loans… in the current financial year.’

The Kochi, Kerala-based company’s overall expenses increased by roughly 20% to 171,200 crore rupees, primarily due to rising finance costs.

Refinitiv IBES data show that the corporation missed street earnings projections of 98,600 crore.

Before the release of the results, Muthoot Finance’s shares finished 1.08% lower, bringing their gains for the year to 27%.

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