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FINANCIAL RESULTS FOR FY 2020-21:Muthoot Finance Ltd

FINANCIAL RESULTS FOR FY 2020-21:Muthoot Finance Ltd 1

Standalone Results of Muthoot Finance Ltd and its subsidiaries

Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 23%, at Rs.3,722crs for FY21 as against Rs. 3,018crs in the previous year.  Loan Assets stood at Rs.52,622crs as at March 31, 2021 as against Rs. 41,611crs as at March 31, 2020, Y-o-Y growth of 26%. During the quarter, gold loan assets increased by Rs. 2,304crs.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary has a loan portfolio of Rs.1,704crs as against previous year of Rs.1,977crs. Total revenue for FY 21 stood at Rs.241crs as against previous year total revenue of Rs.288crs. It achieved a net profit of Rs.13crs in FY21 as against previous year profit of Rs.32crs. Its Stage III Asset on Gross Loan Asset % as on March 31,2021 stood at 4% and net of Stage 3 ECL provisions stood at 2.78%.

M/s. Belstar Microfinance Limited (BML), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its gross loan portfolio to Rs.3,300crs as against last year of Rs.2,631crs, a YoY increase of 25%. During Q4 FY21, loan portfolio increased by Rs.414crs. It achieved a profit after tax of Rs.47crs in FY21 as against previous year profit after tax of Rs.99crs. Its Stage III Asset on Gross Loan Asset % as on March 31,2021 stood at 2.37% and net of Stage 3 ECL provisions stood at 0.50%.

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.406crs in FY21 as against Rs.323crs in the previous year. It generated a Profit after Tax of Rs.32crs in FY21 as against Rs.11crs in the previous year, an increase of 190%.

The Sri Lankan subsidiary – Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 72.92% stake, increased its loan portfolio to LKR 1,400crs as against last year of LKR 1,384crs, a YoY increase of 1%. Total revenue for FY21 stood at LKR 295crs as against previous year total revenue of LKR 333crs. It generated a profit after tax of LKR 5cr in FY 21 as against previous year profit after tax of LKR 7crs.

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 Cars, Two wheelers ,Commercial Vehicles and Equipments.  During FY21, loan portfolio stood at Rs.367crs, as against last year of Rs.509crs. Total revenue for FY21 stood at Rs 70crs. It generated a Profit after Tax of Rs.4crs in FY21 as against Rs.3crs in the previous year.

Appointment Of Mr.George Jacob Muthoot as Chairman

Mr. George Jacob Muthoot, one of the promoters of the Company was unanimously appointed as the Chairperson of the Board of Directors, a position left behind by Late M G George Muthoot due to his untimely demise on March 05, 2021. He is the younger brother of Late M G George Muthoot . Taking over the mantle, Mr. George Jacob Muthoot said that he is truly honoured and humbled to accept the Chairpersonship of the Company and privileged to take this wonderful Company and the team Muthoot Finance forward into the next decade and beyond. Remembering the past Chairman, Mr. George Jacob Muthoot said that he along with other co-members of the family are truly committed in upholding the values and benchmarks set by their elder brother in the business, profession and life. We are sincerely and fervently focussed on achieving the vision and mission set by Late M G George Muthoot whose guiding principles, ethos and values continue to guide us today and in the years to come. 

Management Quote

Commenting on the results, George Jacob Muthoot, Chairman stated that As we complete the 10 years of public listing of equity shares through IPO, we are extremely delighted and overwhelmed to note that we have crossed several landmarks in our business parameters. During the year, our long term credit ratings were upgraded to ‘AA+ ‘by CRISIL and ICRA which makes us the only Gold Loan NBFC with a ‘AA+’ rating from these rating agencies , Our Gold Loan Portfolio crossed Rs. 50,000 crs , the Total revenue for the year  crossed Rs. 10,000 crs , Profit before tax for the year crossed Rs. 5000 crs and Networth crossed Rs. 15000 crs, all such landmarks being achieved for the first time in Company’s history. During the last decade since our IPO, we believe that we have been able to create significant value additions for all our stakeholders at different levels. Being the market leader in our industry we are resolutely confident of continuing our journey in this direction in future too. Following our track record of consistent dividend payout, we declared a dividend of Rs. 20 per share for the financial year 2020-21 involving a total payout of Rs. 802crs in April 2021.

Speaking on the occasion, George Alexander Muthoot, Managing Director said, We are glad to announce that consolidated loan assets of the Group grew by 24% at Rs.58,280crs during FY21 as against last year of Rs.46,871crs. Consolidated Profit After Tax increased by 21% at Rs.3,819crs during FY21 as against last year of Rs.3,169crs. During the quarter, Gold Loan Portfolio of Muthoot Finance increased by Rs.2,304crs to Rs.51,927crs. Standalone Profit of Muthoot Finance for the year ended March 31, 2021 increased by 23% at Rs.3,722crs. During the quarter, we disbursed fresh loans to 3.61lakh new customers amounting to Rs.2,753crs and to 4.32lakh inactive customers amounting to Rs.2,917crs.

Financial Highlights (MFIN) :

 FY21FY20YOYQ4 FY21Q4 FY20YOY
 (Rs.in Crs)(Rs.in Crs)(Rs.in Crs)(Rs.in Crs)
Total Income10,5748,72321%2,8282,40318%
Profit Before Tax5,0074,05723%1,3501,09723%
Profit After Tax3,7223,01823%99681522%
Earnings Per Share(Basic) Rs.92.7975.3123%24.8120.3322%
Loan Assets52,62241,61126%52,62241,61126%
Branches4,6324,5671%4,6324,5671%
ParticularFY21FY20Q4 FY21Q4 FY20
Return on Average  Loan assets7.99%8.11%7.73%8.13%
Return on Average Equity27.77%28.26%27.08%28.39%
Book Value Per Share (Rs.)379.70288.43379.70288.43
ParticularFY 21FY 20
Capital Adequacy Ratio27.4425.47
Share Capital & Reserves (Rs. in Crs)15,23911,572

Business Highlights (MFIN):

ParticularFY21FY20Growth (YoY)
Branch Network4,6324,5671%
Gold Loan Outstanding (Rs. in Cr)51,92740,77227%
Credit Losses (Rs. in Cr)11.8559.92(80%)
% of Credit Losses on Gross Loan Asset Under Management0.02%0.14%(86%)
Average Gold Loan per Branch (Rs. In Cr)11.218.9326%
No. of Loan Accounts (in lakh)84.1080.225%
Total Weight of Gold Jewellery pledged (in tonnes)170.61175.76(3%)
Average Loan Ticket Size61,74350,82421%
No. of employees25,91125,5541%

Other Highlights(MFIN):

  1. Public Issue of Non-Convertible Debentures

During January 2021, Company successfully completed 24th Public Issue of Non-Convertible Debentures raising Rs.293crs. During April 2021, Company successfully completed 25th Public Issue of Non-Convertible Debentures raising Rs.1,700crs

  • Rating Upgradation in CRISIL and ICRA Ratings

CRISIL Ratings has upgraded its ratings on the long term debt facilities of Muthoot Finance Limited from ‘CRISIL AA/Positive’ to ‘CRISIL AA+/Stable’.ICRA  has upgraded its ratings on the long term debt facilities of Muthoot Finance Limited from ‘[ICRA] AA(Stable) to [ICRA] AA+(Stable)’

  • Dividend

Company on April 12, 2021 declared an interim dividend of 200% ie., Rs.20 per share of Rs.10 face value for the financial year 2020-21. This will involve a dividend payout of Rs.802crs. For previous financial year, Company had paid a dividend of 150% ie., Rs.15 per share. Since financial year 2011-12, Company has declared dividend every year and cumulative dividend declared amounts to Rs.4,077crs including the Dividend Distribution Tax.

Subsidiaries

About Muthoot Insurance Brokers Pvt Limited:

MIBPL is a wholly owned subsidiary of Muthoot Finance Ltd. It is an unlisted private limited company holding a license to act as Direct Broker from IRDA since 2013.It is actively distributing both life and non-life insurance products of various insurance companies. During FY21, it has insured more than 31,83,000 lives with a first year premium collection of Rs.2,642 million under Traditional, Term and Health products. The same was 27,71,000 lives with a first year premium collection of Rs.2,059 Million in FY20 respectively.

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