Muthoot Fin net profit up 14%

Muthoot Finance, country's largest gold financing firm, has reported 14 per cent rise in net profit at Rs 979 crore in the first quarter (Q1) of this financial year against Rs 858 crore in the same quarter previous fiscal. The consolidated loan assets under management (AUM) increased by 25 per cent at Rs 58,135 crore in Q1 in this fiscal when compared to Rs 46,501 crore in corresponding quarter last year.

George Jacob Muthoot, Chairman of the company said, "As second wave of pandemic hit across the country in the first quarter, amidst selective lock downs at State and local level, we took all efforts to open our branches and maintain our services to the extent possible. Thanks to our workforce, we were able to maintain our consolidated loan AUM on quarterly basis in spite of the tough environment."

"We consciously decided to go slow in terms of non-gold lending business on account of continued uncertainty and emerging uncertain credit behaviour. We are redrawing our strategies in terms of non-gold lending business and we are confident to emerge stronger as environment improves. On gold loan front, we are targeting 15 per cent growth in the remaining three quarters," said George Alexander Muthoot, MD, Muthoot Finance Ltd.

Its subsidiary Muthoot Homefin India Ltd (MHIL) achieved net profit of Rs.0.48 crore in Q1 FY22 as compared to Rs.0.41 crore in the previous fiscal. The total revenue for Q1 FY22 stood at Rs 46 crore as against Rs 59 crore in the corresponding quarter last year. It has a loan portfolio of Rs 1,705 crore against previous year of Rs 1,979 crore.

Belstar Microfinance Ltd (BML), an RBI registered micro finance NBFC and subsidiary of Muthoot Finance having more than 70 per cent stake, achieved net profit of Rs 2 crore in Q1 FY22 as against previous year of Rs 15 crore. However, its loan portfolio has grown 19 per cent to Rs 3,072 crore in Q1 FY22 as against Rs 2,575 crore in same quarter last fiscal.

The company's another subsidiary Muthoot Insurance Brokers Pvt Ltd (MIBPL), an IRDA registered Direct Broker in insurance products, got a profit of Rs 4.31 crore in Q1 FY22 against Rs 4.16 crore in the previous year. It generated a total premium collection of Rs 61 crore in Q1 FY22 as against Rs 44 crore in the previous year.