Source Name: Muthoot Group

Muthoot Finance Ltd: Q2 FY 2015 Results

Nov 05, 2014 15:52 IST

Kochi, Kerala, India

Retail Loan Assets Under Management at Rs.21802 crs as at 30^th September, 2014
Total Income for Q2 FY15 at Rs.1062 crs
PAT for Q2 FY15 at Rs.171 crs
Branch Network of 4265 spread across 26 States including Union Territories

Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, declared a net profit of Rs.171 crs in the second quarter of FY15 and Rs.351 crs for the half year ended FY15. Total income stood at Rs.1062 crs and at Rs.2154 crs respectively.

Commenting on the results M G George Muthoot, Chairman stated “We feel that worst is behind us. Company is back on growth mode with Rs.338 crs increase in retail loan portfolio during the quarter. This was possible due to concerted effort across all levels of the company. Company’s performance during the quarter is a clear sign that the business model is capable of overcoming the adversities and deliver consistent results. The commitment and focus of the company in the business should benefit the stakeholders at large going forward.”

Speaking on the occasion George Alexander Muthoot, Managing Director said “This quarter we could reverse the degrowth trend which prevailed in the last three quarters in loan portfolio and achieved a net growth of Rs.338crs. This quarter we witnessed the lowest level of loan portfolio of Rs.21283crs in the last three quarters before started growing again. We expect growth momentum to continue with increased customer footfalls. We have been able to win back our customers who left our fold during the period of regulatory uncertainties. Yields have come down slightly due to launch of new pro-customer schemes. However, we expect profitability to improve along with the increase in the loan portfolio. Considering the positive sentiment and availability of capital to meet the growth requirements, Company declared a higher first interim dividend of 40% on Sept 30, 2014. Further, as a prudent provisioning policy, Company is maintaining a higher standard asset provisioning of 0.46% against regulatory requirement of 0.25%.”

Business Highlights:

Particular	H1-FY-15	H1-FY-14	% Growth(YoY)
Branch Network	4265	4229	1%
Gold Loan Outstanding (Rs Cr)	21697	24051	-10%
Credit Losses (Rs. Cr)	10	8	25%
% of Credit Losses on Gross Retail Loan AUM	0.047%	0.032%	47%
Average Gold Loan per Branch(Rs. Cr)	5.09	5.69	-11%
No. of Loan Accounts (in lakh)	57	62	-8%
Total Weight of Gold Jewellery pledged (in tonnes)	120	132	-9%
Average Loan Ticket Size	37911	38846	-2%
No. of employees	23390	25684	-9%

About Muthoot Finance Ltd:

Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company is a “Systemically Important Non-deposit taking NBFC” headquartered in the southern Indian state of Kerala. Operating history of Muthoot Finance has evolved over a period of 75 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887.

The company provides personal loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.

Company is listed on both National Stock Exchange and Bombay Stock Exchange.

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For More Information Please Contact:

Babu John Malayil,

Muthoot Finance Ltd,

Email: babujohn@muthootgroup.com

Contact: 0484- 2396478

Rama Naidu,

Adfactors Public Relations Pvt Ltd

Email: rama.naidu@adfactorspr.com

Contact: 9920209623