Muthoot Finance Q3FY24 Financial Results

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Muthoot Finance Q3FY24 Financial Results
Muthoot Finance Q3FY24 Financial Results

Bengaluru, February 15, 2024:

  •  Consolidated Loan Assets Under Management crosses milestone of Rs. 80,000 crores
  • Standalone Loan Assets Under Management crosses milestone of Rs. 70,000 crores
  •  Historic Highest YoY Growth in Loan Assets of Rs. 13,451 crores as on December 2023, up by 23%
  • Historic Highest YoY Growth in Gold Loan Assets of Rs. 12,397 crores as on December 2023, up by 22%
  • Consolidated Loan Assets Under Management stood at Rs. 82,773 crore, up by 27% YoY
  • Consolidated Profit after Tax stood at Rs. 3,285 crore for 9M FY24, up by 23% YoY
  •  Standalone Loan Assets Under Management stood at Rs. 71,182 crore, up by 23% YoY
  • Standalone Profit after tax stood at Rs. 2,993 crore for 9M FY24, up by 16% YoY

 Other Key Highlights:

  • Opened 487 new branches by the Group in 9M FY24
  • Raised Rs. 480 crores through the 33rd Public Issue of Secured Redeemable Non-Convertible Debentures
  • Received multiple industry recognitions including:
  1.  Shri. George Jacob Muthoot – Chairman, The Muthoot Group was honoured by Smt. Nirmala Sitharaman – Minister of Finance of India as the Inspiring Leader at the ‘Emerging Bharat, Growing Kerala’ economic conclave at Trivandrum
  2. Shri. Alexander George Muthoot, Wholetime Director, Muthoot Finance Ltd  honored with the prestigious Business Leader Award at TechCircle’s Business Transformation Awards 2023
  3. Muthoot Finance Limited honoured as the Biggest Wealth Creator Company in Kerala by ICCI – Indian Chamber of Commerce and Industry, Cochin
  4. Muthoot Finance Limited has been recognised as Best NBFC by FICCI Kerala State Council at the 2nd Edition of Made in Kerala Awards
  5. Our multi-media campaign, “Kholiye Khushiyon Ki Tijori” released in Q4 (2022-2023) has been recognised and awarded the ‘Best Content Marketing Campaign’ at the prestigious Indian Content & Marketing Awards 2023 instituted by exchange4media
  6. Dr. Kalpana Sankar, Managing Director of Belstar Microfinance Ltd., was honoured with the Inclusive Finance India Award 2023, in the category Lifetime Contribution to the Sector by an Individual, instituted by ACCESS & HSBC India along with the Ministry of Financial Services, Government of India

 Results

 A meeting of the Board of Directors of Muthoot Finance Ltd. was held today to consider and approve the unaudited standalone and consolidated results for the quarter ended December 31, 2023.

Consolidated Results of Muthoot Finance Ltd

 Muthoot Finance Ltd Consolidated Loan Assets Under Management grew 27% YoY to Rs. 82,773 crores as at 9M FY24 as against Rs. 65,085 crores last year. During the quarter, Consolidated Loan Assets Under Management increased by Rs. 3,280 crores i.e. an increase of 4% QoQ. Consolidated Profit after tax for 9M FY24 stood at Rs. 3,285 crores as against Rs. 2,661 crores last year, an increase of 23% YoY. Consolidated Profit after tax for Q3 FY24 increased by 23% YoY at Rs. 1,145 crores as against Rs. 934 crores in Q3 FY23.

(Rs. in crores)

Financial Performance Q3 FY24 Q2 FY24 QoQ % Q3 FY23 YoY % 9M FY24 9M FY23 YoY %
Group Branch Network 6,325 6,169 3% 5,810 9% 6,325 5,810 9%
Consolidated Loan AUM of the Group 82,773 79,493 4% 65,085 27% 82,773 65,085 27%
Consolidated Profit after tax of the Group 1,145 1,095 5% 934 23% 3,285 2,661 23%
Contribution in the Consolidated Loan AUM of the Group
Muthoot Finance Ltd 70,852 68,872 3% 57,571 23% 70,852 57,571 23%
Subsidiaries 11,921 10,621 12% 7,514 59% 11,921 7,514 59%
Contribution in the Consolidated Profit after tax of the Group
Muthoot Finance Ltd 1,024 984 4% 900 14% 2,979 2,567 16%
Subsidiaries 121 111 6% 34 246% 306 94 225%

 

Mr. George Jacob Muthoot, Chairman, The Muthoot Group said “We are glad to announce that our Consolidated Loan Assets Under Management crossed milestone of Rs. 80,000 crores and Standalone Loan Assets Under Management crossed milestone of Rs. 70,000 crores. While the Consolidated Loan Assets Under Management increased by 27% YoY, the contribution of subsidiaries increased to 14% from 12% last year. The Consolidated Profit after Tax for 9M FY24 increased by 23% YoY at Rs. 3,285 crores. The contribution of subsidiaries in the Consolidated Profit after tax also increased to 9% from 4% last year. India’s favorable demographics, coupled with our policymakers focus on sustained economic growth presents a huge growth opportunity for us. In line with our vision to emerge as a diversified financial business, we are consciously pivoting our efforts towards growing our non-gold loan book while maintaining our position as a frontrunner in the gold loan industry. We aim to capitalize on the strong growth opportunity in affordable housing, microfinance, personal loan and vehicle finance and grow the share of subsidiaries to 18%-20% in the next 5 years.”

Mr. George Alexander Muthoot, Managing Director, Muthoot Finance said, “In Q3 FY24, the Standalone Loan AUM grew by Rs.2,180 crores, primarily driven by growth in Gold Loan of Rs.1,704 crores, reaching Rs.71,182 crores. The Standalone Profit after Tax for 9M FY24 increased by 16% YoY at Rs. 2,993 crores.  In 9 months of this year, we achieved the highest ever Gold Loan advance to new customers of Rs.11,920 crores. Among subsidiaries, housing finance arm could achieve disbursements of Rs.493 crores in 9M FY24 as against Rs.139 crores last year. The micro finance arm increased its Loan AUM by 65% YoY reaching Rs.8835 crores and Profit after Tax by 382% YoY of Rs.235 crores.  We are confident that the resilient Indian economy coupled with government thrust on capex, pick up in investment activity and uptrend in rural demand will keep the gold loan demand strong, and are well poised to achieve our guidance of growing our loan book by 15% in FY24. In addition, our non-gold loan businesses continue to do well, especially our micro finance loans, personal loans and home loans are helping us diversify our overall loan book.  We have further added 156 branches in Q3, including in our subsidiaries, thus taking our overall branch network to 6325 as of end December 2023. Our phy-digital strategy is paying off well and nearly 40% of our gold loan customers have transacted via our digital channels. We will continue to leverage our extensive branch presence, along with digital offerings, to enhance customer engagement and meet their diverse needs with tailored financial solutions.”

Key Subsidiaries – ‘Continued growth momentum’

 Belstar Microfinance

  • Disbursements improved to ~ Rs. 6,776 crores in 9M FY24; growth of 85% YoY
  • Increase in Profit After Tax  in 9M FY24 at Rs. 235 crores vs. Rs. 49 crores in 9M FY23; growth of 382% YoY which surpassed the entire profit of the previous year and an increase of 631% YoY at Rs.100 crores in Q3 FY24 from Rs.14 crores in Q3 FY23
  • Increase in loan AUM of 65% YoY at Rs.8,835 crores in 9M FY24 from Rs. 5,341 crores in 9M FY23
  • Collection Efficiency remaining more than 99% for Regular accounts
  • GNPA at 1.88 % in 9M FY24 vs.  7.33% in 9M FY23; NNPA at 0.16% in 9M FY24 vs.  2.02% in 9M FY23
  • Opened 63 new branches during Q3 FY24

Muthoot Homefin

  • Loan AUM at Rs. 1,783 crores in 9M FY24 vs. Rs. 1,410 crores in 9M FY23; growth of ~26% YoY
  • Disbursed loans of Rs. 493 crores in 9M FY24 as compared to Rs. 139 crores in 9M FY23; a growth of 256% YoY
  • Interest income increased at ~23% YoY to Rs. 124 crores in 9M FY24 vs. Rs. 101 crores in 9M FY23
  • Profit After Tax stood at Rs. 13 crores in 9M FY24 vs. Rs. 8 crores in 9M FY23; ; growth of ~72% YoY
  • GNPA at 3.54 % in 9M FY24 vs.  4.36% in 9M FY23; NNPA at 1.50% in 9M FY24 vs.  1.69% in 9M FY23

Muthoot Money

  • Loan AUM at Rs. 818 crores in 9M FY24 vs. Rs. 293 crores in 9M FY23; growth of ~179% YoY
  • Increase in Loan AUM by Rs. 188 crores in Q3 FY24, up by 30% QoQ
  • Continued decline in NPA through physical collections witnessed consistently throughout the year. GNPA decreased to 1.70% in 9M FY24 from 7.50% in 9M FY23
  • Achieved a profit of Rs. 3 crores during 9M FY24 vs. loss of Rs. 3 crores in 9M FY23
  • Branch network increased to 340 from 276  during Q3 FY24

Standalone Results of Muthoot Finance Ltd and its subsidiaries

Muthoot Finance Ltd (MFIN), India’s largest gold financing company in terms of loan portfolio, registered profit after tax of Rs. 2,993 crores in 9M FY24 as against Rs. 2,571 crores in 9M FY23, an increase of 16% YoY. Profit after tax for Q3 FY24 increased by 14% YoY at Rs. 1,027 crores as against Rs. 902 crores in Q3 FY23. Loan AUM stood at Rs. 71,182 crores in 9M FY24 as compared to Rs. 57,731 crores in 9M FY23 , registering a growth of 23% YoY. During 9M FY24, Gold Loan assets increased by Rs. 7,346 crores registering a growth of 12%. During the quarter, Gold Loan assets increased by Rs.1,704 crores.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan AUM stood at Rs. 1,783 crores in Q3 FY24 as against Rs. 1,410 crores in Q3 FY23, an increase of 26% YoY. During the 9M FY24, Loan AUM increased by Rs. 345 crores, an increase of 24%. The loan disbursement for 9M FY24 stood at Rs.493 crores as against Rs.139 crores in 9M FY23, a YoY increase of 256%. Total revenue for Q3 FY24 & 9M FY24 stood at Rs.54 crores & Rs.147 crores as against Rs.41 crores & Rs.116 crores in Q3 FY23 & 9M FY23, registering a growth of 34% YoY and 27% YoY respectively. Profit after tax stood at Rs. 13 crores in 9M FY24 as against Rs. 8 crores in 9M FY23, an increase of 72% YoY.

M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC, and a subsidiary company where Muthoot Finance holds 59.02% stake. Loan AUM for 9M FY24 increased to Rs. 8,835 crores as against Rs. 5,341 crores for 9M FY23, an increase of 65% YoY. The loan disbursement for 9M FY24 stood at Rs.6,776 crores as against Rs.3,661 crores in 9M FY23 , a YoY increase of 85%. During the 9M FY24, Loan assets increased by Rs. 2642 crores, an increase of 43% .During the quarter, Loan AUM increased by Rs. 961 crores, an increase of 12% QoQ. Profit after tax stood at Rs. 235 crores in 9M FY24, as against Rs. 49 crores in 9M FY23, up 382% YoY and Rs. 100 crores in Q3 FY24 as against Rs. 14 crores in Q3 FY23, an increase of 631% YoY. Stage III Asset stood at 1.88% as of December 31, 2023 as compared to 7.33% last year.

Muthoot Insurance Brokers Pvt. Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs. 466 crores in 9M FY24. Total revenue for 9M FY24 stood at Rs. 96 crores . It achieved a Profit after tax of Rs. 32 crores in 9M FY24.

Asia Asset Finance PLC (AAF) is a listed subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio stood at LKR 1,890 crores in 9M FY24. Total revenue for 9M FY24 increased to LKR 505 crores as against Rs. 424 crores in 9M FY23, an increase of 19% YoY. It achieved a Profit after tax of LKR 22 crores in 9M FY24.

Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non-Banking Finance Company engaged mainly in extending gold loans and loans for commercial vehicles and equipment. Loan portfolio for 9M FY24 stood at Rs. 818 crores, as against Rs. 293 crores as on 9M FY23, an increase of 179% YoY. During the quarter, Loan AUM increased by Rs. 188 crores, an increase of 30% QoQ. Total revenue for 9M FY24 increased to Rs. 82 crores as against Rs. 39 crores in 9M FY23, an increase of 109% YoY. It achieved a profit after tax of Rs. 3 crores for 9M FY24 as compared to a loss of Rs. 3 crores during last year .