 "Muthoot Finance hits 52-week high on good Q4 results")
Muthoot Finance has rallied 11% to Rs 239, also its 52-week high on the BSE, after the company reported strong 61% year on year jump in net profit at Rs 265 crore for the quarter ended March 2016 (Q4FY16), on back of healthy operational income. The company had profit of Rs 165 crore in a year ago quarter.
Total income from operations rose 32% to Rs 1,451 crore against Rs 1,102 crore in the corresponding quarter of previous fiscal.
Commenting on the results M G George Muthoot, Chairman stated “The last quarter of the year witnessed aggressive collection effort on overdue accounts which resulted in higher yields. Further, avoidance of settlement schemes as well as higher realization on auction of overdue loan accounts due to increased gold prices as well as increase in loan portfolio has also enabled us to improve the yield.”
Total income from operations rose 32% to Rs 1,451 crore against Rs 1,102 crore in the corresponding quarter of previous fiscal.
Commenting on the results M G George Muthoot, Chairman stated “The last quarter of the year witnessed aggressive collection effort on overdue accounts which resulted in higher yields. Further, avoidance of settlement schemes as well as higher realization on auction of overdue loan accounts due to increased gold prices as well as increase in loan portfolio has also enabled us to improve the yield.”
The company announces its entry into microfinance business by acquiring stake in Chennai based microfinance firm Belstar Investment and Finance Private Limited.
At 10:52 AM, the stock was up 7.5% at Rs 231 on the BSE compared to 0.05% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 760,683 shares changed hands on the BSE and NSE.