Muthoot Finance Registers an Increase in Net Profit by 11 per cent in FY19
Kochi: Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 11 per cent, at Rs.1972 crore for FY19 as against Rs. 1778 crore in the previous year. The net profit of Muthoot Finance remained flat at ₹511 crore in Q4 of FY19, compared to ₹508 crore in the corresponding period of the previous fiscal.
However, the standalone net profit of the NBFC was up 11 per cent at ₹1,972 crore for FY19, compared to ₹1,778 crore in FY18. The consolidated PAT also registered a 14 per cent increase at ₹2,103 crore, compared to ₹1,844 crore in the previous fiscal.
The consolidated loan assets under management (AUM) achieved a 20 per cent increase at ₹38,304 crore, against last year’s ₹31,921 crore. Loan assets stood at ₹34,246 crore at March 31, 2019, against ₹29,142 crore in March 31, 2018. During Q4 FY19, loan assets increased by ₹1,776 crore. Muthoot Homefin India, a wholly-owned subsidiary, achieved a net profit of ₹36 crore in FY19, against ₹22 crore in the previous year.
Belstar Investment and Finance Pvt Ltd, the microfinance NBFC, achieved a PAT of ₹73 crore against ₹27 crore in the previous year. Muthoot Insurance Brokers Pvt Ltd generated total premium collection of ₹268 crore in FY19 and PAT of ₹15 crore.
Commenting on the results M G George Muthoot, Chairman stated, “We are glad to announce that consolidated loan assets of the Group grew by 20 per cent at Rs.38,304 crore during FY19 as against last year of Rs.31,921 crore. Consolidated Profit increased by 14 per cent at Rs.2103 crore during FY19 as against last year of Rs.1844 crore. Muthoot Finance also paid an interim dividend of 120 per cent; Rs. 12 per share for FY19. Company also made public issue of debentures focusing on retail investors raising Rs.709 crore which shows our ability to have diversified funding sources”.
Speaking on the occasion George Alexander Muthoot, Managing Director said, “Muthoot Finance achieved a growth of 18 per cent during FY19 reaching Rs.34,246 crore as against last year of Rs. 29,142 crore. Subsidiaries have achieved considerable momentum in building loan assets. Our subsidiaries achieved YoY loan growth of 51 per cent reaching Rs. 4558 crore as against last year of Rs. 3012 crore. They are contributing 12 per cent of Group Loan assets. Muthoot Homefin (India) Limited has grown its loan portfolio to Rs.1908 crore as against previous year of Rs. 1459 crore, a YoY increase of 31 per cent. The micro finance subsidiary which has a strong SHG model increased its loan portfolio to Rs. 1842 crore as against last year of Rs. 1138 crore, a YoY increase of 62 per cent. The NBFC in Sri Lanka increased its loan portfolio by 26 per cent YoY. Total Premium collections in the Insurance Broking subsidiary increased by 59 per cent at Rs. 268 crore during the year as against previous year.”