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“Muthoot Finance Ltd crosses the landmark of Rs.50,000crs loan assets”

“Muthoot Finance Ltd crosses the landmark of Rs.50,000crs loan assets” 1
  • Consolidated Loan Assets Under Management increased by 28% YoY to Rs.55,800 crs for 9M FY21
  • Consolidated Profit after Tax increased by 20% YoY to Rs.2,795 crs for 9M FY21
  • Standalone Loan Assets Under Management increased by 31% YoY to Rs. 50,391 crs for 9M FY21
  • Standalone Profit after tax increased by 24% YoY to Rs. 2,726 crs for 9M FY21

Consolidated Results of Muthoot Finance Ltd

Muthoot Finance Ltd’s Consolidated Loan Assets Under Management (AUM) achieved a YoY increase of 28% to Rs. 55,800 crs as against last year of Rs. 43,436 crs for 9M FY21. Consolidated Profit after Tax achieved a YoY increase of 20% to Rs. 2,795 crs as against last year of Rs. 2,333 crs for 9M FY21.

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 24%, to Rs. 2,726 crs for 9M FY21 as against Rs. 2,203 crs in the previous year.  Loan Assets stood at Rs. 50,391 crs as on December 31, 2020 as against Rs. 38,948 crs as ao December 31, 2019, Y-o-Y growth of 31%. During the quarter, gold loan assets increased by Rs. 3,389 crs.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan portfolio decreased to Rs.1,881crs as against previous year of Rs.2,025crs. Total revenue for Q3 FY21 & 9M FY21 stood at Rs. 51 crs & Rs. 167crs as against total revenue of Rs. 88 crs & Rs. 240 crs for corresponding periods last year. It achieved a profit after tax of Rs.2 crs & Rs. 8 crs in Q3 FY21 & 9M FY21 as against last year’s profit of Rs. 11 crs & Rs. 31crs for corresponding period. Its Stage III Asset on Gross Loan Asset % as on December 31, 2020 stood at 1.56%. Company also made a Covid ECL provision of Rs.21crs additionally.

M/s. Belstar Microfinance Limited (BML) , an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs. 2,886 crs as against last year of Rs. 2,285crs, a YoY increase of 26%. During Q3 FY21, loan portfolio increased by Rs. 199 crs. It achieved a profit after tax of Rs. 5crs & Rs. 35 crs in Q3 FY21 & 9M FY21 as against previous year profit after tax of Rs. 26crs & Rs. 77 crs. Its Stage III Asset on Gross Loan Asset % as on December 31, 2020 stood at 0.67%. Company also made a Covid ECL provision of Rs.41crs additionally.

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. 107 crs & Rs. 258 crs in Q3 FY21 & 9M FY21 as against Rs. 85 crs & Rs. 217 crs in the previous year. It generated a Profit after Tax of Rs. 9 crs & Rs. 22 crs in Q3 FY21 & 9M FY21 as against Rs.5 crs & Rs.12 crs in the previous year.

The Sri Lankan subsidiary – Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 72.92% stake, increased its loan portfolio to LKR 1,331 crs as against last year of LKR 1,301 crs, a YoY increase of 2%. Total revenue for Q3 FY21 & 9M FY21 stood at LKR 71 crs & LKR 217 crs as against previous year total revenue of LKR 86 crs & LKR 252 crs. It generated a profit after tax of LKR 1.6 crs & LKR 1.8 crs in Q3 FY21 & 9M FY21 as against previous year profit after tax of LKR 4 crs & LKR 9 crs.

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 vehicles. Recently, Company has started extending loans for Commercial Vehicles and Equipments. Its loan portfolio stood at Rs.421crs as on December 31 ,2020.During Q3 FY21, loan portfolio decreased by Rs. 42 crs. Total revenue for Q3 FY21 & 9M FY21 stood at Rs. 16 crs & Rs. 54crs. It made a profit of Rs. 3crs for 9M ended December 31, 2020. Company also made a Covid ECL provision of Rs 8 crs additionally.

Management Quote

Commenting on the results M G George Muthoot, Chairman stated, “We are glad to announce that consolidated loan assets of the Group grew by 28% at Rs. 55,800 crs during 9M FY21 as against last year of Rs. 43,436 crs. Consolidated Profit increased by 20% at Rs. 2,795 crs during 9M FY21 as against last year of Rs. 2,333 crs.

Speaking on the occasion George Alexander Muthoot, Managing Director said, “We had a remarkable third quarter with several achievements. Our Standalone Loan Assets of Muthoot Finance has crossed the landmark of Rs.50,000crs. Our active customers presently having a loan account also crossed the landmark of 50lakhs customers. We have achieved a growth of 22% in gold loan portfolio during the 9 months of current year and likely to end the year with at least 25% growth as against previous year growth of 22%. During the quarter, gold loan portfolio of Muthoot Finance increased by Rs. 3,389crs to Rs. 49,622crs i.e., QoQ growth of 7%. Standalone profit of Muthoot Finance for the 9 months ended December 31, 2020 increased by 24% at Rs. 2,726crs. Our disbursements for the quarter were focused on new customer additions, fresh loans to active and inactive customers and top-up loans to existing customers. We disbursed fresh loans to 3.88lakh new customers amounting to Rs.2,976crs and to 4.38lakh inactive customers amounting to Rs.2,960crs. Subsidiaries followed a cautious approach towards lending. Non-gold loan portfolio in subsidiaries constituted 10% of consolidated loan portfolio.”

Financial Highlights (MFIN) :

 9M FY219M FY20YoYQ3 FY21Q3 FY20Q2 FY21Q1 FY21YoYQoQ
 (Rs.in Crs)(Rs.in Crs) (Rs.in Crs)(Rs.in Crs)(Rs.in Crs)(Rs.in Crs) 
Total Income7,7466,32023%2,7772,3212,5842,38520%7%
Profit Before Tax3,6572,96024%1,3321,0961,2001,12522%11%
Profit After Tax2,7262,20324%99181589484122%11%
Earnings Per Share(Basic) Rs.67.9854.9824%24.7220.3422.3020.9622%11%
Loan Assets50,39138,49831%50,39138,49847,01641,29631%7%
Branches4,6324,5362%4,6324,5364,6074,5732%1%
Particular9M FY219M FY20Q3 FY21Q3 FY20Q2 FY21Q1 FY21
Return on Average  Loan assets8.06%8.14%8.14%8.79%8.10%8.11%
Return on Average Equity28.24%27.72%28.97%29.64%28.05%28.16%
Book Value Per Share (Rs.)353.28284.20353.28284.20328.82306.99
ParticularQ3 FY21Q3 FY20Q2 FY21Q1 FY21
Capital Adequacy Ratio26.3826.5125.7326.30
Share Capital & Reserves (Rs. in Crs)14,17811,40113,19712,316

Business Highlights (MFIN):

Particular9M FY219M FY20Growth (YoY)
Branch Network4,6324,5362%
Gold Loan Outstanding (Rs. in Cr)49,62237,72432%
Credit Losses (Rs. in Cr)750-86%
% of Credit Losses on Gross Loan Asset Under Management0.013%0.129%-90%
Average Gold Loan per Branch (Rs. In Cr)10.738.3229%
No. of Loan Accounts (in lakh)80800%
Total Weight of Gold Jewellery pledged (in tonnes)166173-4%
Average Loan Ticket Size61,85847,00832%
No. of employees25,89325,1493%

Other Highlights(MFIN):

  1. Loan Assets under Management

During the quarter, standalone loan assets under management crossed Rs. 50,000 Crs.

  • Public Issue of Non-Convertible Debentures

During November 2020, Company successfully completed 23rd Public Issue of Non-Convertible Debentures raising Rs. 2,000 crs.

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 Q3 FY21, it has insured more than 10,31,000 lives with a first year premium collection of Rs.734 million. The same was 8,35,000 lives with a first year premium collection of Rs.580 Million in Q3 FY20 respectively.

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