Muthoot Finance Q4FY22 Financial Results
Key Milestones for FY 2021-22
- Consolidated Loan AUMcrossed Rs.64,000 crores in FY22
- Consolidated Profit after Taxcrossed Rs 4,000 crores in FY22
- Consolidated Networth 18000croresin FY22
- Dividend of 200% on face value of shares of Rs.10 each involving a payout of 803 crores.
A meeting of the Board of Directors of Muthoot Finance Ltd. was held today to consider and approve the audited standalone and consolidated results for the quarter ended March31, 2022.
Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets under management grew 11% YoY toRs.64,494croresas at FY22 as against Rs.58,280croreslast year.Consolidated Profit after tax for FY22 grew 6% YoY to Rs.4031crores as against Rs.3,819crores last year.
(Rs. in Crore)
|Financial Performance||FY22||FY21||YoY %|
|Group Branch Network||5581||5,451||2|
|Consolidated Gross Loan Assets of the Group||64494||58,280||11|
|Consolidated Profit of the Group||4031||3,819||6|
|Contribution in the Consolidated Gross Loan Assets of the Group|
|Muthoot Finance Ltd||58,005||52,394||11|
|Contribution in the Consolidated Profit of the Group|
|Muthoot Finance Ltd||3,949||3,700||7|
Commenting on the results, Mr. George Jacob Muthoot, Chairman stated, “Despite the ongoing geo-political crisis and covid related basechallenges, Muthoot Finance has delivered a consistent performance in this quarter and was able to achieve a consolidated AUM of Rs.64,494crores, registering a growth of 11% YoY. We achieved landmark level of consolidated profit after tax of Rs.4031crs for FY 2022. As the economy is gradually recovering, the demand for gold loans has been steady and we remain optimistic for the coming financial year. Gold prices have been steadily rising over the last three years and this has attracted new customers towards the product and has positively helped the sector.With Indian Households owning the world’s biggest private stock of gold, and only about ten percent in the organized gold loan market space including gold loan companies, there is huge untapped opportunity in gold loan sector. We aim to keep innovating and maintain our leadership in the gold loan sector.”
Mr. George Alexander Muthoot, Managing Director said,“Since we are witnessing signs of recovery in the economy, the RBI rate hike may not dampen overall demand scenario and we are expecting borrowing cost to go up gradually during the year. Gold loans are a great option both, in times of rise and drop in economic activities. As the economy recovers and overall economic demand revives, our focus will be to make the most of the opportunities and keep innovating further. Gold Loan AUM grew 11% during FY22 and we remain optimistic about a growth of 12-15% in Gold loan AUM for FY23 as well.The digital initiatives like AI-powered Voicebot platform enabling real time conversation with customers , launching of a new & improvised Muthoot WhatsApp experience and facilitating digital repayments through PayTM, PhonePe, Google Pay, WhatsApp etc. are enabling factors towards growth. We have recently also revamped our Gold Loan@Home services and plan to expand the service across 4600+ branches in India.”
He further added, “The Q4 FY22 results highlighted a steady performance in this quarter. We had disbursed fresh loans to 4.00 lakh new customers amounting to Rs.4664crs and to 4.89 lakh inactive customers amounting to Rs. 4759crores. Further, Company could register a 6% increase in profit after tax at Rs.3,954 crores for the twelve months ended March 31, 2022 and 11% growth in gold loans at Rs.57,531 crores. With respect to our subsidiaries, following the rise in demand in the economy, the collections from Micro finance, vehicle finance and home loans have improved. We aim to further improve our collections in these segments. However, we will continue to adopt a balanced growth strategy and given the ongoing macro-economic environment we continue to be cautious on the Micro finance and Vehicle finance business.”
Standalone Results of Muthoot Finance Ltd and its subsidiaries
Muthoot Finance Ltd (MFIN), India’s largest gold financing company in terms of loan portfolio, registered net profit of Rs.3,954 crores inFY22 as against Rs.3,722crores in FY21, an increase of 6% YoY. The net profit stood at Rs.960crores in Q4FY22 as against Rs.996 crores in Q4FY21.Loan Assets stood at Rs.58,053 croresas compared to Rs.52,622croreslast year, registering a growth of 10% YoY.Gold Loan Assets stood at Rs. 57,531crores as compared to Rs.51,927crores last year, registering a growth of 11% YoY.During Q4FY22 , Loan Assets grew by Rs.3,365crs, 6% QoQ.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan portfolio stood atRs.1,470croresas on March 31, 2022 as against previous year of Rs.1704crores, a decrease of 14%.Total revenue for FY21& FY22 stood at Rs.245crores & Rs.214crores respectively. It achieved a Profit after tax of Rs.13crores & Rs.8 crores in FY21& FY22respectively.Stage III Asset as percentage of Gross Loan Asset reduced to2.10% as on March 31, 2022as compared to 4% as of March 31, 2021.
M/S. Belstar Microfinance Limited (BML), is a RBI registered micro finance NBFC and a subsidiary Company where Muthoot Finance holds 60.69% stake, increased its loan portfolio toRs. 4,366crores as against last year of Rs.3,300crores, a YOY increase of 32%. During Q4 FY22, loan portfolio increased by Rs.530 crores. It achieved a Profit after tax of Rs.47crores & Rs.45crores in FY21& FY22 respectively. Stage III Asset as percentage of Gross Loan Asset stood at 5.73% as of March 31, 2022 as compared to 2.37% as of March 31, 2021.
Further Belstar Microfinance raised equity capital of Rs. 275 crores from a new investor Arum Holdings Limited along with existing investors Muthoot Finance Limited and Maj Invest Financial Inclusion Fund during Q4 FY22.In addition, Muthoot Finance has acquired an additional 5,88,235 equity shares in Belstar Microfinance Limited for a consideration aggregating to ₹ 20 Crores.Consequent to the new fund raise, shareholding of Muthoot Finance Ltd declined from 70.01% to 60.69%.
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. 406crores & Rs.479crores in FY21&FY22 respectively. Total revenue for FY21&FY22 stood at Rs.47crores & Rs.45crores respectively. It achieved a Profit after tax of Rs.32crores & Rs.28 crores in FY21&FY22 respectively.
Asia Asset Finance PLC(AAF)is a subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake.Muthoot Finance has made an additional investment of an amount of LKR 39.69crores in Asia Asset Finance PLC by subscribing to 3,96,87,516 convertible irredeemable preference shares of the face value of LKR 10 each during FY 2021-22. Loan portfolio grew to LKR 1,735crores as against LKR1,400croreslast year, an increase of 24% YoY. Total revenue for FY21&FY22 stood at LKR 295crores & LKR 318crores respectively. It achieved a Profit after tax of LKR 5crores & LKR12 crores in FY21&FY22 respectively.
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 in extending loans for commercial vehicles and equipments.Loan portfolio stood at Rs.207 crores as at March 31, 2022. Total revenue for FY21&FY22 stood at Rs.70crores & Rs.45 crores respectively.
Financial Highlights (MFIN): Standalone results for Muthoot Finance Ltd.
(Rs. in Crore)
|Profit Before Tax||5,309||5,007||6|
|Profit After Tax||3,954||3,722||6|
|Earnings Per Share(Basic) Rs.||98.55||92.79||6|
|Return on Average Loan assets||7.24%||7.99%|
|Return on Average Equity||23.55%||27.77%|
|Book Value Per Share (Rs.)||456.98||379.70|
|Capital Adequacy Ratio||29.97||27.39|
|Share Capital & Reserves (Rs. in Cr)||18345||15,239|
Business Highlights (MFIN):
|Particulars||FY22||FY21||Growth (YoY % )|
|Gold Loan Outstanding (Rs. in Cr)||57,531||51,927||11|
|Credit Losses (Rs. in Cr)||28.94||11.85||144|
|% of Credit Losses on Gross Loan Asset Under Management||0.05%||0.02%||150|
|Average Gold Loan per Branch (Rs. in Cr)||12.46||11.21||11|
|No. of Loan Accounts (in lakh)||83.70||84.10||-0.48|
|Total Weight of Gold Jewellery pledged (in tonnes)||187.04||170.61||10|
|Average Loan Ticket Size||68,739||61,743||11|
|No. of employees||26,716||25,911||3|
Wide Spectrum of Digital Initiatives
The Company made giant strides on technology & digital fronts with the introduction of many customer-centric digital & technology initiatives.
- We revamped our corporate website based on a ‘customer-first design thinking’ approach and launched AI-powered Virtual Assistant ‘Mattu’ with multi-lingual support & voice search capability.
- We also flagged-off an AI-powered Voicebot platform that enables real time conversation with customers and expedites pending decisions through automations.
- We also scaled up our branch security to a whole new level by empowering our branches with a new-age, AI-enabled branch security system, utilizing high-end Graphics Processing Units (GPUs).
- The Company also launched a new & improvised Muthoot WhatsApp experience and facilitated digital repayments through PayTM, PhonePe, Google Pay, WhatsApp etc.
Innovative Digital Products:
The company recently announced that they are planning to expand their Gold Loan@Home service across 4600+ branches in India and customers can avail hassle-free gold loans of Rs. 1 lakh and above from the comfort and privacy of their homes. The average ticket size of loans availed under Gold Loan@Home is Rs. 6.5 lakhs and currently, about 60-65% of these Gold Loan@Home services are being availed by self-employed people to finance their business requirements.
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 a Direct Broker from IRDA since 2013.It is actively distributing both life and non-life insurance products of various insurance companies. During FY22, it has insured 35,56,144lives with a first year premium collection of Rs.327crores under traditional, term and health products. The same was 31,83,784lives with a first year premium collection of Rs.264crores in FY21.
Key Business Parameters
(Rs. in Crore)
|Total Premium Collection||479||405|
|No. of Policies (in lakhs)||36||32|
|Profit After Tax||28||32|