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Muthoot Finance: Loan Assets Under Management increase by 19% at Rs.36497 crs

Published in Corporate Thursday, 07 February 2019 15:10

 

 

Standalone Net Profit increase by 15% YoY at Rs.1460crs for 9MFY19

 

Standalone & Consolidated Loan Assets of Muthoot Finance Ltd

Muthoot Finance Ltd Consolidated Loan Assets under management achieved a YoY increase of 19% at Rs.36446crs as against last year of Rs. 30717crs. During the quarter, Consolidated Loan Assets under management increased by 1% of  Rs.490crs.

 Q3FY19YoY (%)Q2FY19QoQ(%)Q1FY19FY 18YTD (%)

Consolidated Gross Loan Assets of the Group* (Rs. In crores)3649719%359562%343163215913%

Gross Loan Assets of Muthoot Finance(Rs. In crores)3247015%323190%309972914211%

Gross Loan Assets of Subsidiaries(Rs. In crores)402765%363711%3319301733%

Contribution of Subsidiaries in the Consolidated Gross Loan Assets of the Group* 11%10%10%9% 

 

 

Group Branch Network48827%47652%468845966%

*Muthoot Finance Ltd and its 4 subsidiaries involved in lending business.

 

Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 15%, at Rs.1460crs for 9MFY19 as against Rs.1269crs in the previous year. Loan Assets stood at Rs.32470crs as at December 31, 2018 as against Rs.28269crs as at December 31,2017, Y-o-Y growth of 15%.During the quarter, Loan Assets increased by Rs. 151crs.

 

Muthoot Homefin (India) Ltd (MHIL) , the wholly owned subsidiary ,increased its loan portfolio to Rs.1835crs as against previous year of Rs.1100crs , a YoY increase of 67%. During the quarter , loan portfolio increased by Rs.60crs , QoQ growth of 3%. Total revenue for Q3FY19 & 9M FY 19 stood at Rs. 57crs& 163crs as against previous year total revenue of Rs.36crs & Rs.81crs. It achieved a net profit of Rs.9crs & Rs.30crs in Q3FY19& 9M FY19 as against previous year profit of Rs.8crs & Rs.16crs.Its Gross and Net NPA stood at 0.74% and 0.59% as on December 31,2018.

M/s. Belstar Investment and Finance Private Limited (BIFPL) , an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grewits loan portfolio to Rs.1563crs as against last year of Rs.945crs, a YoY increase of 65%. During the quarter , loan portfolio increased by Rs.182crs , QoQ growth of 13%. It achieved a profit after tax of Rs.25crs& Rs.56crs during Q3FY19& 9M FY19 as against previous year profit after tax of Rs.10crs& Rs.22crs. Its Gross and Net NPA stood at 0.95% and 0.41% as on December 30,2018.

Muthoot Insurance Brokers Pvt Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a First year premium collection amounting to Rs.62crs & Rs.179crs during Q3FY19& 9M FY19 as against  Rs.22crs& Rs.59crsin the previous year. It generated a Profit after Tax of Rs.4crs& Rs.10crs during Q3FY19& 9M FY19 as against Rs.3crs & Rs.6crs in the previous year.

 

The Sri Lankan subsidiary - Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 60%stake, increased its loan portfolio to LKR 1163crs as against last year of LKR 975crs, a YoY increase of 19%. During the quarter, loan portfolio increased by LKR 39crs, QoQ growth of 4%.Total revenue for Q3FY19 & 9MFY19 stood at LKR 71crs & LKR 209as against previous year total revenue of LKR 65crs & LKR 188crs. It generated a profit after tax of LKR 1cr& LKR 5crsduring Q3FY19 & 9M FY 19as against previous year profit after tax of LKR 5crs & LKR 14crs.

Muthoot Money Pvt Ltd (MMPL), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MMPL is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. Recently, Company has started extending loans for Commercial Vehicles and Equipments.  As on 31st December, 2018 it has a total loan portfolio of Rs.187crs. 

 

Commenting on the results M G George Muthoot, Chairman stated, “Third quarter was a turbulent period for all NBFCs because of concerns on liquidity scenario. Muthoot Finance as a responsible company to all the stakeholders acted cautiously and conserved liquidity rather than growth. Hence our loan assets remained flat for  the quarter. However , compared to last year our growth was 15% at Rs.32470crs . Profitability increased by 15% for 9 months at Rs. 1460crs. Under IND–AS, stage 3 assets, ie., loans beyond 90days DPD , declined to Rs.637crs(1.96% of Loan Assets) on December 31 , 2018 as against Rs.1287crs(4.42% of Loan Assets) as on  March 31,2018.”

 

Speaking on the occasion George Alexander Muthoot, Managing Director said, “Considering that gold loans are of short  duration of around 3 to 4months, our balance sheet always carry positive ALM. Markets have realised this fact and has shown significant interest in subscribing to our Commercial Paper issuances during the quarter. Our subsidiaries achieved YoY loan growth of  65% reaching Rs. 4027crs as against last year of Rs.2448crs . They are contributing  11% of Group Loan assets. Muthoot Homefin (India) Limited has grown its loan portfolio to Rs.1835crs as against previous year of Rs.1100crs , a YoY increase of 67%.  The micro finance subsidiary which has a strong SHG model increased its loan portfolio to Rs. 1563crs as against last year of Rs.945crs, a YoY increase of 65%. The NBFC in Sri Lanka increased its loan portfolio by 19% YoY.  First Year Premium collections in the Insurance Broking subsidiary increased by 182% at Rs.62crs during the quarter as against previous year.”

 

Financial Highlights (MFIN) :

 9M FY199M FY18YoY %Q3 FY19Q2 FY19Q1 FY19Q3 FY18YoY %QoQ %

 (Rs.in Crs)(Rs.in Crs)Change(Rs.in Crs)(Rs.in Crs)(Rs.in Crs)(Rs.in Crs)ChangeChange

Total Income500046318%17171650163315918%4%

Profit Before Tax2283202513%7827457557435%5%

Profit After Tax1460126915%4854844924791%-

Earnings Per Share(Basic) Rs.36.5031.7715%12.1212.0912.2911.981%-

Loan Assets324702826915%3247032319309972826915%-

Branches442243032.8%44224370434443033%1%

 

 

 9MFY199MFY18Q3 FY19Q2 FY19Q1 FY19Q3 FY18

Return on Average  Loan assets6.24%6.11%5.99%6.11%6.54%6.85%

Return on Average Equity22.86%23.65%21.48%22.70%24.54%24.54%

Book Value Per Share (Rs. )231.46194.59 

 

 

 Q3 FY19Q2 FY19Q1 FY19Q3 FY18

Capital Adequacy Ratio25.74%25.92%26.44%27.65%

Share Capital & Reserves (Rs. in Crs)9278879083077790

 

Business Highlights (MFIN):

Particular9M FY 199M FY 18Growth (YoY)

Branch Network442243033%

Gold Loan Outstanding (Rs. in Cr)317942809713%

Credit Losses (Rs. in Cr)5.7112.76-55%

% of Credit Losses on Gross Loan Asset Under Management 0.018%0.045%-61%

Average Gold Loan per Branch(Rs. In Cr)7.186.5310%

No. of Loan Accounts (in lakh)81767%

Total Weight of Gold Jewellery pledged (in tonnes)1661548%

Average Loan Ticket Size39477370696%

No. of employees24063229335%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 80 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, NinanMathai Muthoot, in 1887. 

 

The company provides personal and business 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.

 

About Muthoot Insurance Brokers Pvt Limited:

 

MIBPL is a wholly owned subsidiary of Muthoot Finance Ltd. It is an unlisted private limited company holding a license to act as Direct Broker from IRDA since 2013.It is actively distributing both life and non-life insurance products of various insurance companies. During FY18, it has insured more than 8,41,000 lives with a First year premium collection of Rs.101Crs under Traditional, Term and Health products. The same was5,66,000& 4,59,000 lives with a First year premium collection of Rs.70Crs & Rs.49Crs in FY18 & FY16 respectively. 

 

 

Key Business Parameters

 

Particulars

Q3 FY 19

Q2 FY 19Q1 FY19Q3 FY 189M FY 199M FY 18FY18FY17

First Year Premium Collection (Rs. In crs)626749221795910170

No. of Policies(In Lakhs)5.635.484.502.0315.626.368.415.66

 

 

 

About Muthoot Homefin (India) Limited:

 

MHIL is a Housing Finance Company registered with The National Housing Bank (NHB). It is a wholly owned subsidiary of Muthoot Finance Limited.  

MHIL’s prime goal is to contribute towards financial inclusion of LMI families by opening doors of formal housing finance to them. Its focus is on extending Affordable Housing Finance. MHIL would be concentrating primarily on retail housing loans in the initial stages. It operates on a ‘Hub and Spoke’ model, with the centralised processing based out of Corporate Office at Mumbai. MHIL has operations in 12 states - Maharashtra (including Mumbai), Gujarat, Rajasthan, Madhya Pradesh, Kerala, Karnataka, Telangana, Andhra Pradesh, Haryana, Chandigarh, Uttar Pradesh and Punjab.

 

MHIL has long term debt rating of AA- (Stable) for its bank limits which indicates “High degree of safety with regard to timely servicing of financial obligations and carry very low credit risk” and short term debt rating of ‘A1+’ for its Commercial Paper programme which indicates “Very strong degree of safety regarding timely payment of financial obligations and carry lowest credit  risk” from ICRA Ltd .

CRISIL Ltd assigned long term debt rating of AA (Stable) for its bank limits which indicates “High degree of safety with regard to timely servicing of financial obligations and carry very low credit risk.”

 

Key Financial Parameters

                                                    (Rs. In Millions)

Particulars

Q3 FY 19Q2 FY 19Q1 FY 19Q3 FY 18

9M FY 2019

 

9M FY 2018 

FY 18FY 17

No. of branches797370177917199

No. of Sales Offices132132132121132121121110

No. of Employees347288243194347194221111

 

Loan Portfolio18351177531621010999183511099914,6484,408

Capital Adequacy Ratio46%45%28%2646%26%28%37%

 

Total Revenue56856249735816278071259242

Total Expense4384123352291185541840189

Profit Before Tax13014916212944126641953

Profit After Tax88991118029816227829

 

Shareholder’s Funds3958386922702044395820442160882

Total Outside Liabilities14611141981468310326146111032613,7003,624

Total Assets18568180671695312370185681237015,8604,506

Gross NPA(%)0.740.780.510.430.740.430.42-

Net NPA(%)0.590.630.430.370.590.370.36-

 

 

About Belstar Investment and Finance Private Limited (BIFPL):

 

BIFPL was incorporated on January 1988 at Bangalore and the Company was registered with the RBI in March 2001 as a Non- Banking Finance Company. The Company was reclassified as “NBFC-MFI” by RBI effective from 11th December 2013. Muthoot Finance holds 70.01% of equity share capital of BIFPL.BIFPL was acquired by the ‘Hand in Hand’ group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by ‘Hand in Hand’s’ Self Help Group (SHG) program. The Company commenced its first lending operations at Havier District of Karnataka in March 2009 to 3 SHGs, 22 members for INR 0.02crores.

In the last nine years of its operations, BIFPL primarily relied on taking over the existing groups formed by Hand in Hand India. BIFPL predominantly follows the SHG model of lending. Effective January 2015, BIFPL started working in JLG model of lending in Pune district, Maharashtra.

 

As of December 31, 2018, BIFPL operations are spread over 9 states and 1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Chattisgarh, Rajasthan , Gujarat and Pondicherry). It has 339 branches, with 59 controlling regional offices and employing 2528 staff. Its gross loan portfolio has grown from INR 0.02 Crores in March 2009 to INR 1563 crores in December 2018. For FY 18, its Net Profit after Tax was Rs.33.66crs and had a net worth of Rs.159.48crs.

 

Key Financial Parameters

(Rs. In Millions)

ParticularsQ3 FY19Q2 FY 19Q1 FY 19Q3 FY189M FY199M FY 18FY 18FY 17

No. of branches

339

305

257

215

339

215

235

155

No. of Employees

2,528

2,305

2,046

1576

2,528

1576

1,783

1,093

 

Gross Loan Portfolio

15,627

13,806

12,361

9,451

15,627

9,451

11,371

5,759

Capital Adequacy Ratio

34%

24%

15%

19%

34%

19%

18%

17%

 

Total Revenue8888547495962491149721891,034

Total Expense563616546448172511681693874

Profit Before Tax

325

238

204

148

766

329

496

160

Profit After Tax24816914597562215337104

 

Shareholder’s Funds

3,832

3,383

1,920

1,412

3,832

1,412

1595

903

Total Outside Liabilities

12,359

12,067

11,599

9,621

12,359

9,621

11,825

6,726

Total Assets16,19115,44913,51911,03316,19111,03313,4207,629

Gross NPA(%)*0.950.880.830.840.950.840.760.10

Net NPA(%)*0.410.440.450.370.410.370.300.01

*on Gross Loan Portfolio

 

 

 

 

 

About Asia Asset Finance PLC, Sri Lanka:

 

Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of Muthoot Finance Ltd on December 31, 2014.  The company formerly known as Finance and Land Sales has been in operation for over 47 years, evolving to serve the growing needs of people of Sri Lanka. 

 

As on December  31, 2018, total holding in AAF by Muthoot Finance stood at 503 million equity shares representing 60% of their total capital. AAF is a Registered Financial Company based in Sri Lanka a fully licensed, deposit-taking institution registered with the Central Bank of Sri Lanka and listed in the Colombo Stock Exchange.

 

AAF is in lending business since 1970.  At present the company is involved in Retail Finance, Hire Purchase & Business Loans and has 21 branches across Sri Lanka. It has total staff strength of 525 currently. In 2015, it entered the space of Gold Loans with assistance of Muthoot Finance. 

 

 

Key Financial Parameters                                       (LKR in millions)

Particulars

Q3 FY 19

Q2 FY19

Q1 FY19

Q3 FY18

9M FY19

9M FY18

FY18

FY17

LKR/INR0.380360.428330.432630.413740.380360.413740.415510.42113

 

No. of Branches2117171721171715

 

No. of Employees

525

493

493

490

525

490

489448

 

Loan Portfolio11,63011,23710,6809,74611,6309,7469,9508,662

Capital Adequacy Ratio

 

17%

 

21%22%20%

 

17%20%20%19%

 

Total Revenue712693687645209118762,5722,131

 

Total Expenses

690

664

655

585

2008

1687

2,350

1,815

 

Profit Before Tax

22

29

32

60

83

190

222316

Profit After Tax1522164753143178278

 

 

Shareholder’s Funds

 

1912

 

1897

 

1875

 

1821

 

1912

 

1821

 

1,8591,737

Total Outside Liabilities

11,299

10,511

10,151

9,515

11,299

9,515

9,869

8,290

Total Assets13,21112,40812,02611,33613,21111,33611,72810,027

 

 

 

 

About Muthoot Money Private Limited:

Muthoot Money Pvt Ltd (MMPL), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MMPL is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. Recently, Company has started extending loans for Commercial Vehicles and Equipments. 

 

As on 31st December,2018 it has a total loan portfolio of Rs.187 Crores.

 

Key Financial Parameters:(Rs in millions)

Pariculars9M FY19Q3 FY19Q2 FY 19Q1 FY 19FY 2018

No. of branches21212051

No. of employees298298203763

Gross Loan Portfolio1,8671867830130

65

Capital Adequacy Ratio(%)

53%-

 

-

-

-

Total Revenue8562203

11

Total Expense12172427

8

Profit Before Tax(36)(10)(22)(4)

3

Profit After Tax(36)(10)(22)(4)

2

Shareholders Funds996996123032

Total Outside Liabilities89389371811835

Total Assets1,8901,89073014867

 

 

 

 

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