Muthoot Finance Q3 net profit jumps 14% YoY to ₹1,027 Crore

15 Feb 2024 , 11:18 AM

According to financial statistics the company released on February 14, Muthoot Finance’s net profit for the October–December quarter of the current fiscal was ₹1,027.3 Crore, 13.9 % more than the same quarter last year.

In the same time of the previous fiscal year, the company’s net profit was ₹901.7 Crore.

In Q3 FY24, net interest income—the difference between interest paid to depositors and income collected from lending operations—amounted to ₹1,905.7 Crore. This is 11.8 % more than the ₹1,704.3 Crore that was reported during the same period last year.

The NII and net profit exceeded the CNBC-TV18 projections, which were ₹1,871.5 Crore and ₹958.8 Crore, respectively.

The board also gave its approval to issuing non-convertible debentures in order to raise up to ₹16,000 Crore.

As more people sought loans against their higher-valued assets, gold prices rose to a record high throughout the quarter, which benefited gold financiers by raising the value of pledged gold collateral and spurring loan growth.

For the nine months that concluded on December 31, the company’s standalone loan assets under management (AUM) increased by 23%, while the AUM for gold loans increased by 22%.

In the quarter, finance costs increased by 33% due to higher borrowing costs.

Since May 2022, Indian lenders have experienced a 250 basis point increase in financing costs as a result of the central bank maintaining benchmark lending rates steady for the last six policy meetings.

Because of increased financing expenses, Muthoot Finance has underperformed during the preceding three quarters.

Last week, Manappuram Finance, a smaller rival, revealed a profit that above projections, fueled by expansion in non-gold loan categories.

During the day’s trading session, shares of Muthoot Finance finished at ₹1,383 apiece on the BSE, up 1.14 % from the previous day’s closing.

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