Muthoot Finance tumbles after Q1 PAT slips 17% YoY to Rs 802 cr

16 Aug 2022 , 11:01 AM

Sequentially, the NBFCs net profit and total income in Q1 FY23 decreased 16.48% and 6.31%, respectively. Indias largest gold loan NBFCs consolidated net profit tumbled 15.7% to Rs 824.96 crore on 5.4% decline in total income to Rs 2,804.32 crore in Q1 FY23 over Q1 FY22. Consolidated profit before tax stood at Rs 1,111.95 crore in the first quarter, down 15.1% from Rs 1,309.85 crore recorded in the same period last year. The gold financers consolidated loan assets under management stood at Rs 63,444 crore in Q1 FY23, rising 9% from Rs 58,135 crore posted in Q1 FY22 but fell 2% quarter on quarter from Rs 64,494 crore reported in Q4 FY22. Speaking about the results, George Jacob Muthoot, chairman of Muthoot Group said, ?We continue to deliver stellar performance in gold loan space. Though there is a dip in loan assets during the quarter, we have achieved a YoY growth of 9% in loan assets at Rs 63,444 crore. High frequency indicators suggest recovery in economic activity, with strong urban demand environment though the rural demand is still reviving. The Indian economy has been resilient and we are optimistic about steady demand conditions for gold loans coupled with the huge untapped opportunity in gold loan segment. The RBI approval for opening new 150 branches, coupled with the recent digital initiatives, gold Loan@home service will help us further expand and tap new customers.? George Alexander Muthoot, managing director, Muthoot Finance said, ?The impact of the very low interest rate teaser loans has resulted in lower yields during Q1 FY23. The launching of teaser loans was a strategic move taken in Q3 FY22 and it enabled us to attract a set of new high value customers. Although our live number of customers is 50 Lakh, we have a customer base of more than 4 to 5 times this number, who have had earlier transacted with us. Certainly these customers will come back to Muthoot for availing the high quality service we offer them when they require credit. We are expecting opening of 150 new branches for which approval was received from RBI to be completed by October 2022 upon which additional business will be generated.? Muthoot Finance is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, education and hospitality. It is Indias largest gold loan focussed NBFC. Powered by Capital Market – Live News