Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd’s Consolidated Loan Assets under management achieved a YoY increase of 22% at Rs.46,871crs as against last year of Rs.38,304crs for FY20. Consolidated Profit after tax achieved a YOY increase of 51% of Rs.3,169crs as against last year of Rs.2,103crs for FY20
FY20 | FY19 | YOY % | |
Group Branch Network | 5,330 | 5,020 | 6% |
Consolidated Gross Loan Assets of the Group (Rs. In crores) | 46,871 | 38,304 | 22% |
Consolidated Profit of the Group (Rs. In crores) | 3,169 | 2,103 | 51% |
Contribution in the Consolidated Gross Loan Assets of the Group | |||
Muthoot Finance | 41,216 | 33,746 | 22% |
Subsidiaries | 5,655 | 4,558 | 24% |
Contribution in the Consolidated Profit of the Group | |||
Muthoot Finance | 2,993 | 1,946 | 54% |
Subsidiaries | 176 | 157 | 12% |
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 53%, at Rs.3,018crs for FY20 as against Rs.1,972crs in the previous year. Loan Assets stood at Rs.41,611crs as at March 31, 2020 as against Rs.34,246crs as at March 31, 2019, Y-o-Y growth of 22%. During the quarter, gold loan assets increased by Rs. 3,113crs.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary , increased its loan portfolio to Rs.1,977crs as against previous year of Rs.1,908crs , a YoY increase of 4%. Total revenue for FY 20 stood at Rs.288crs as against previous year total revenue of Rs.226crs. It achieved a net profit of Rs.32crs in FY20 as against previous year profit of Rs.36crs. Its Stage III Asset on Gross Loan Asset % as on March 31,2020 stood at 1.71%.
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.2,631crs as against last year of Rs.1,842crs, a YoY increase of 43%. During Q4 FY20, loan portfolio increased by Rs.346crs. It achieved a profit after tax of Rs.99crs in FY20 as against previous year profit after tax of Rs.73crs. Its Stage III Asset on Gross Loan Asset % as on March 31,2020 stood at 0.91%.
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.323crs in FY20 as against Rs.268crs in the previous year. It generated a Profit after Tax of Rs.11crs in FY20 as against Rs.15crs 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 1,384crs as against last year of LKR 1,257crs, a YoY increase of 10%. During Q4 FY20, loan portfolio increased by LKR 83crs. Total revenue for FY20 stood at LKR 333crs as against previous year total revenue of LKR 287crs. It generated a profit after tax of LKR 7cr in FY 20 as against previous year profit after tax of LKR 10crs.
Muthoot Money Pvt Ltd (MMPL), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MMPL is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. Recently, Company has started extending loans for Commercial Vehicles and Equipments. During FY20, it has increased its loan portfolio to Rs.509crs, as against last year of Rs.311crs, a YoY increase of 64%. During Q4 FY20, loan portfolio increased by Rs.18crs. Total revenue for FY20 stood at Rs 70crs as against previous year total revenue of Rs 16crs.
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 22% at Rs.46,871crs during FY20 as against last year of Rs.38,304crs. Consolidated Profit increased by 51% at Rs.3,169crs during FY20 as against last year of Rs.2,103crs. During the quarter, gold loan portfolio of Muthoot Finance increased by Rs.3,113crs to Rs.41,611crs. Standalone profit of Muthoot Finance for the year ended March 31, 2020 increased by 53% at Rs.3,018crs.”
George Alexander Muthoot, Managing Director , on this occasion stated , “Company could open majority of its branches since April 20 and as of now all branches are functioning normally. Disbursements and collections have normalized and we are expecting increase in disbursement once movement of people increases and economic activity level picks up. Company continues to maintain adequate liquidity to meet all repayment obligations. We have been able to raise fresh Commercial paper, NCDs, Bank limits etc. We are looking to grow gold loan business by about 15% for the whole year.”
Financial Highlights (MFIN) :
FY20 | FY19 | YOY | Q4 FY20 | Q4 FY19 | YOY | |
(Rs.in Crs) | (Rs.in Crs) | (Rs.in Crs) | (Rs.in Crs) | |||
Total Income | 8,723 | 6,881 | 27% | 2,403 | 1,880 | 28% |
Profit Before Tax | 4,057 | 3,077 | 32% | 1,097 | 794 | 38% |
Profit After Tax | 3,018 | 1,972 | 53% | 815 | 512 | 59% |
Earnings Per Share(Basic) Rs. | 75.31 | 49.27 | 53% | 20.33 | 12.77 | 59% |
Loan Assets | 41,611 | 34,246 | 22% | 41,611 | 34,246 | 22% |
Branches | 4,567 | 4,480 | 2% | 4,567 | 4,480 | 2% |
Particular | FY20 | FY19 | Q4 FY20 | Q4 FY19 |
Return on Average Loan assets | 8.11% | 6.31% | 8.13% | 6.13% |
Return on Average Equity | 28.26% | 22.40% | 28.39% | 21.46% |
Book Value Per Share (Rs.) | 288.43 | 244.27 | 288.43 | 244.27 |
Particular | FY 20 | FY19 |
Capital Adequacy Ratio | 25.47 | 26.05 |
Share Capital & Reserves (Rs. in Crs) | 11,572 | 9,793 |
Business Highlights (MFIN):
Particular | FY20 | FY19 | Growth (YoY) |
Branch Network | 4,567 | 4,480 | 2% |
Gold Loan Outstanding (Rs. in Cr) | 40,772 | 33,585 | 21% |
Credit Losses (Rs. in Cr) | 59.92 | 25.92 | 131% |
% of Credit Losses on Gross Loan Asset Under Management | 0.14% | 0.08% | 75% |
Average Gold Loan per Branch (Rs. In Cr) | 8.93 | 7.50 | 19% |
No. of Loan Accounts (in lakh) | 80.22 | 80.62 | -0.5% |
Total Weight of Gold Jewellery pledged (in tonnes) | 175.76 | 169.50 | 4% |
Average Loan Ticket Size | 50,824 | 41,658 | 22% |
No. of employees | 25,554 | 24,224 | 5% |
Other Highlights(MFIN):
- Muthoot Finance Ltd raises USD 550 million from International Bond Markets
During February 2020, Muthoot Finance Ltd., successfully placed second tranche of Offshore Bond -USD 550 Million Fixed Rate Senior Secured Note issuance in 144A / Reg S format for a 3.5year tenor at 4.400% in accordance with RBI’s ECB Guidelines and other applicable laws.
The final order book was in excess of USD 1.6 Billion with oversubscription of more than 2.9x reflecting the strong demand for the company’s bonds. The transaction witnessed 37% participation from Asia, 13% from Europe and 50% from US; with 89% investments from fund managers, 6% from private banks, 3% from insurance & banks and 2% from others. The bonds are listed on International Securities Market of the London Stock Exchange.
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 FY20, it has insured more than 27,71,000lives with a first year premium collection of Rs.2,059million under Traditional, Term and Health products. The same was 22,10,000 lives with a first year premium collection of Rs.1,738Million in FY19 respectively.
Key Business Parameters
Particulars | FY20 | FY 19 |
Total Premium Collection (Rs. In millions) | 3232 | 2676 |
No. of Policies | 28,06,336 | 22,40,560 |