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Net profit of Muthoot Finance up by 46%

Published in Corporate Friday, 26 May 2017 15:56


Branch Network of 4307 spread across 29 States including Union Territories
Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 46%, at Rs. 1180crs for the year ended March 31, 2017 as against Rs. 810 crs in the previous year. The net profit for the quarter ended March 31, 2017 increased by 22%, at Rs. 322crs as against Rs.265crs last year. Retail loans registered an increase by Rs.2899crs during the year FY17 which is an increase of 12% as against 4% in the previous year. Retail Loan AUM stood at Rs. 27278crs at the end of March 31, 2017.
During the year, Company acquired 64.60% stake in equity share capital of M/s. Belstar Investment and Finance Private Limited (BIFPL), an RBI registered micro finance NBFC. During the year, its loan portfolio grew by 114% at Rs. 567crs. It achieved a profit after tax of Rs.10crs during the year as against previous year profit after tax of Rs.6crs. Its Gross and Net NPA stood at 0.09% and 0.02% respectively as on March 3, 2017.

During the year, Company acquired 100% stake in Muthoot Insurance Brokers Pvt Limited, an IRDA registered Direct Broker in insurance products .It generated a First year premium collection amounting to Rs. 70crs during FY17 as against Rs. 48 crs during previous year.
During the year, Company increased its shareholding in the housing finance company - Muthoot Homefin (India) Ltd from 79% to 88.27%.During the year, its loan portfolio increased by Rs. 409crs at Rs. 441crs. Total revenue for FY17 stood at Rs. 24crs as against previous year total revenue of Rs.2crs. It achieved a profit after tax of Rs. 2.87crs during the FY17 as against previous year profit after tax of Rs.1.36 lakhs.

During the year, Company increased its shareholding in the Sri Lankan subsidiary - Asia Asset Finance PLC.  It increased its loan portfolio by 26% at LKR 866crs during the year. Total revenue for FY17 stood at LKR 213crs as against previous year total revenue of LKR 139crs. It generated a profit after tax of LKR 28crsduring the year as against previous year profit after tax of LKR 18 crs.

Commenting on the results M G George Muthoot, Chairman stated, “An economy which is raring to grow at a high pace powered by a stable government, strong positive sentiment and commitment for resolution of macro and micro issues, present tremendous opportunity for growth for the Group. Inspite of the challenges during last year, we could achieve 46% increase in profit after tax at Rs. 1180crs. Retail loans increased by Rs. 2899crs during the year, an increase of 12% YoY”
Speaking on the occasion George Alexander Muthoot, Managing Director said, “Our subsidiaries today contribute about 5% of the Group assets. We are looking at increasing the share of subsidiaries to about 10% of the Group assets in the coming year.  Housing finance company has grown its loan portfolio to Rs.441crs and provides a good potential for growth in the affordable housing segment. The micro finance subsidiary which has a strong SHG model could increase its loan portfolio, during the year, by 114% at Rs.567crs. The NBFC in Sri Lanka has increased its loan portfolio by 26%.  First Year Premium collections in the Insurance Broking subsidiary have increased by 46% at Rs.70crs.”
Financial Highlights:
     FY17 ( Crs)    FY16 ( Crs)    YoY % change    Q4FY17 ( Crs)    Q4FY16 ( Crs)    Q4 YoY % change    Q3FY17 ( Crs)    Q2FY17 ( Crs)    Q1FY17 ( Crs.)
Total Income    5747    4875    18%    1713    1451    18%    1346    1386    1301
Profit Before Tax    1921    1317    46%    589    475    24%    446    462    424
Profit After Tax    1180    810    46%    322    265    22%    291    297    270
Earnings Per Share(Basic)    29.56    20.34    45%    8.06    6.67    21%    7.29    7.44    6.77
Retail Loan AUM    27278    24379    12%    27278    24379    12%    26962    27456    25860
Branches    4307    4275    1%    4307    4275    1%    4308    4327    4294
     FY17    FY16    Q4FY17    Q3FY17    Q2FY17    Q1FY17
Return on Average Retail Loans    4.47%    3.32%    4.75%    4.28%    4.45%    4.30%
Return on Average Equity    19.44%    15.13%    19.80%    18.37%    19.65%    18.78%
Book Value Per Share (Rs.)    162.98    140.72    162.98    162.15    154.97    147.51
     FY17    FY16    Q4FY17    Q3FY17    Q2FY17    Q1FY17
Capital Adequacy Ratio    24.88%    24.48%    24.88%    24.66%    23.67%    24.27%
Share Capital & Reserves (Rs. in Crs)    6516    5619    6516    6482    6189    5892
Business Highlights:
Particular    FY 17    FY 16    Growth (YoY)
Branch Network    4307    4275    1%
Gold Loan Outstanding (Rs Cr)    27220    24335    12%
Credit Losses (Rs. Cr)    16.54    10.72    54%
% of Credit Losses on Gross Retail Loan AUM    0.061%    0.04%    52%
Average Gold Loan per Branch(Rs. Cr)    6.32    5.69    11%
No. of Loan Accounts (in lakh)    73    66    11%
Total Weight of Gold Jewellery pledged (in tonnes)    149    142    5%
Average Loan Ticket Size    37186    36639    1%
No. of employees    24205    22781    6%
Other Highlights:

Company has started using e-KYC to comply with the KYC norms. It is a customer friendly and convenient digital KYC process based on Aadhaar with direct UIDAI link. This paperless and highly secure process enables faster loan processing and ensures 100% integrity in KYC verification. This has been introduced for the first time by a Gold Loan NBFC, with more than 50% adoption rate in the first roll out. Introducing e-Sign by March 2017.
Gold Cash Card (GCC) - DCB VISA
This is a unique concept of cashless loan disbursement introduced for the first time by a Gold Loan NBFC. Loan amount is loaded into a VISA card and given to the customer to be used as per their needs at any merchant outlets,for online/e-commerce shopping and at any VISA enabled PoS. It can also be used to draw cash from ATMs. Bank account is not required for the card issuance.
 Direct Credit Facility
Electronic transfer of loan proceeds direct to the Customer’s bank account through NEFT/RTGS/IMPS mode of bank transfer. Facilitates instant credit to bank account.
 PoS Terminals
Card swiping machines installed at branches to facilitate cashless collection of interest. Accepts debit cards issued by banks and the swiping charges for interest payments is waived off.
Muthoot Online

Our online transaction platform – WebPay is available for customers to carry out all their Gold Loan related transactions from the comfort of their Laptop, Desktop, Phone, Tablet. This facility is available on our website
Mobile App

Muthoot has  also developed a new Mobile Application called iMuthoot which allows customers to transact through their smartphones. This is a major step by Muthoot Finance towards a branch-less banking ecosystem for our customers. iMuthoot is available on Google Play for Android Phones & Apple Store for iPhones respectively. Existing customers can view their loan statement and balance before making transactions including Interest and Principal Repayments, Withdrawals, Top-up and Renewal of Loans from the convenience of their smartphones. New Customers can view our latest loan schemes, calculate the loan eligibility, locate branches and fix an appointments with a nearest branch and Apply for a Gold loan - all this from their smart phones. It is available in six languages to choose from.

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