Muthoot Finance Q1 Net Rises 48% To Rs 270 Crore On Retail Demand
Muthoot Finance registered a net profit of Rs 270 crore during the first quarter ended June of the current financial year, up 48 per cent from a year earlier
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Muthoot Finance registered a net profit of Rs 270 crore during the first quarter ended June of the current financial year, up 48 per cent from a year earlier.
The gold loan financing company had made a profit of Rs 183 crore in April-June of 2015-16.
"Retail loans registered an increase of Rs 1,481 crore during the quarter as against Rs 1,000 crore in the last year, translating into an increase in growth rate of 48 per cent," the company said in a release.
The asset under management (AUM) went up 6 per cent to Rs 25,860 crore at the end of June 2016, as against Rs 24,409 crore last year.
Total income also registered an increase of 14 per cent at Rs 1,143 crore in the quarter to June, from Rs 1,301 crore in the same period a year before.
Also, it completed acquisition of Muthoot Insurance Brokers Private as a wholly-owned subsidiary during the June quarter, which collected Rs 10 crore premium.
Muthoot Finance said the Sri Lankan subsidiary, Asia Asset Finance, has increased its loan portfolio by 50 per cent to Lankan rupee 742 crore as of June 2016, from Lankan rupee 494 crore a year ago.
"Micro finance, gold loans, personal and business loans will be the major thrust areas for the company (the Lankan subsidiary), going forward," it added.
"The current excellent performance could be attributed to total revamp in collection mechanism, structural changes made in operations and improved customer sentiment due to better practices adopted by the company. We feel that with economic activities expected to pick up on account of the good monsoon, we should expect growth momentum to continue," said M G George Muthoot, Chairman, Muthoot Finance.
MD George Alexander Muthoot said: "Foray into other business segments is yielding benefits and business of these segments is picking up. We would like to tread a cautious path rather than be aggressive on these new segments."
The stock closed up 3.19 per cent at Rs 318.65 on BSE.