Muthoot Finance Q1FY23 Financial Results
Key Highlights
- Received RBI approval for opening 150 new branches
- Raised Rs.643 crore through 26th and 27th Public Issue of Non-convertibles Debentures
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 June 30, 2022.
Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets Under Management grew 9% YoY to Rs.63,444 crore in Q1FY23 as against Rs.58,135 crore in same quarter last year. During the quarter, Consolidated Loan Assets Under Management decreased by 2%QoQ. Consolidated Profit after tax declined by 16% YoY to Rs.825 crore as against Rs.979 crore in the same quarter last year.
(Rs. in Crore)
| Financial Performance | Q1 FY23 | Q4 FY22 | QoQ % | Q1 FY22 | YoY % | FY22 |
| Group Branch Network | 5,667 | 5,579 | 2% | 5,443 | 4% | 5,579 |
| Consolidated Gross Loan Assets of the Group | 63,444 | 64,494 | -2% | 58,135 | 9% | 64,494 |
| Consolidated Profit of the Group | 825 | 1,006 | -18% | 979 | -16% | 4,031 |
| Contribution in the Consolidated Gross Loan Assets of the Group | ||||||
| Muthoot Finance Ltd | 56,689 | 58,005 | -2% | 52,493 | 8% | 58,005 |
| Subsidiaries | 6,755 | 6,489 | 4% | 5,642 | 20% | 6,489 |
| Contribution in the Consolidated Profit of the Group | ||||||
| Muthoot Finance Ltd | 802 | 960 | -16% | 969 | -17% | 3,949 |
| Subsidiaries | 23 | 46 | -50% | 10 | 130% | 82 |
Speaking about the results, Mr. George Jacob Muthoot,Chairman, Muthoot Group said, “We continue to deliver stellar performance in gold loan space. Though there is a dip in loan assets during the quarter, we have achieved a YoY growth of 9% in loan assets at Rs.63,444crore. High frequency indicators suggest recovery in economic activity, with strong urban demand environment though the rural demand is still reviving. The Indian economy has been resilient and we are optimistic about steady demand conditions for gold loans coupled with the huge untapped opportunity in gold loan segment. The RBI approval for opening new 150 branches, coupled with the recent digital initiatives, gold Loan@home service will help us further expand and tap new customers.
Mr. George Alexander Muthoot, Managing Director, Muthoot Financesaid, “The impact of the very low interest rate teaser loans has resulted in lower yields during Q1FY23. The launching of teaser loans was a strategic move taken in Q3 FY 22 and it enabled us to attract a set of new high value customers. During the quarter, we focused on migrating such teaser loans to higher rate schemes and we successfully completed this exercise as on June 30,2022. Hence the decline in loan assets by 2%. Although our live number of customers is 50 Lakh, we have a customer base of more than 4 to 5 times this number, who have had earlier transacted with us.Certainly these customers will come back to Muthoot for availing the high quality service we offer them when they require credit. We are expecting opening of 150 new branches for which approval was received from RBI to be completed by October 2022 upon which additional business will be generated.”
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 net profit of Rs. 802 crore in Q1FY23 as against Rs.971 crore in Q1FY22, adecrease of17% YoY. Loan Assets stood at Rs.56,689crore as compared to Rs.52,614crore in the same quarter last year, registering a growth of 8% YoY. During the quarter loan assets declined by Rs.1,364crore, ie. decline of 2% QoQ.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan portfolio decreased to Rs.1,475crore as against Rs.1,705 crore in same quarter last year. Total revenue for Q1 FY23 stood at Rs.38crore, down17% YoY. Profit after tax stood at Rs.1.50 crore in Q1FY23as against Rs.0.50 crore in the same quarter last year, up 200% YoY. Stage III Asset as percentage of Gross Loan Asset stood at 2.58% as on June 30, 2022 as compared to 2.10% as of March 31, 2022.
M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC and a subsidiary company where Muthoot Finance holds 56.97% stake. Loan portfolio for Q1FY23 stood at Rs.4,696crore as against Rs.3,072 crore in Q1FY22, an increase of 53% YoY. Profit after tax stood at Rs.14 crore in Q1FY23, up 600% YoY as against Rs.2crore in the same quarter last year. Stage III Asset as percentage of Gross Loan Asset stood at 7.33% as of June 30, 2022 as compared to 5.73% as of March 31, 2022.
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.131crore in Q1FY23 as against Rs. 61crore in same quarter last year. Profit after Tax stood at Rs.7crore in Q1 FY23 as against Rs.4crore in the same quarter last year.
Asia Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio grew to LKR 1,762 crore as against LKR 1,429 crore last year, an increase of 23% YoY. Total revenue for Q1 FY23 stood at LKR 116crore as against LKR 68 crore last year. Profit after tax stood at LKR 5crore in Q1 FY23 as against profit of LKR 1 crore in same quarter last year.
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 loans for commercial vehicles and equipment. Loan portfolio for Q1 FY23 stood at Rs.198 crore as against Rs.333 crore in same quarter last year. Total revenue for Q1 FY23 stood at Rs.11 crore.
Other Highlights:
Financial Highlights (MFIN): Standalone results for Muthoot Finance Ltd.
(Rs. in Crore)
| Particulars | Q1 FY23 | Q4 FY22 | QoQ % | Q1 FY22 | YoY % |
| Total Income | 2,509 | 2,678 | -6% | 2,715 | -8% |
| Profit Before Tax | 1,082 | 1,292 | -16% | 1,300 | -17% |
| Profit After Tax | 802 | 960 | -16% | 971 | -17% |
| Earnings Per Share(Basic) Rs. | 19.98 | 23.93 | -17% | 24.21 | -17% |
| Loan Assets | 56,689 | 58,053 | -2% | 52,614 | 8% |
| Branches | 4,617 | 4,617 | – | 4,625 | -0.17% |
| Particulars | Q1 FY23 | Q4 FY22 | Q1 FY22 |
| Return on Average Loan assets | 5.59% | 6.81% | 7.38% |
| Return on Average Equity | 17.50% | 21.48% | 25.37% |
| Book Value Per Share (Rs.) | 456.48 | 456.98 | 383.33 |
| Particulars | Q1 FY23 | Q4 FY22 | Q1 FY22 |
| Capital Adequacy Ratio | 30.62 | 29.97 | 27.32 |
| Share Capital & Reserves (Rs. in Cr) | 18,325 | 18,345 | 15,384 |
Business Highlights (MFIN):
| Particulars | Q1 FY23 | Q1 FY22 | Growth (YoY) |
| Branch Network | 4,617 | 4,625 | -0.17% |
| Gold Loan Outstanding (Rs. in Cr) | 56,177 | 52,069 | 8% |
| Credit Losses (Rs. in Cr) | 5.30 | 9.10 | -44% |
| % of Credit Losses on Gross Loan Asset Under Management | 0.01% | 0.02% | -50% |
| Average Gold Loan per Branch (Rs. in Cr) | 12.17 | 11.26 | 8% |
| No. of Loan Accounts (in lakh) | 81 | 85 | -5% |
| Total Weight of Gold Jewellery pledged (in tonnes) | 178 | 171 | 4% |
| Average Loan Ticket Size | 69,438 | 61,080 | 14% |
| No. of employees | 26,618 | 25,397 | 5% |