The NBFC's consolidated net profit rose 2.44% to Rs 930.79 crore on 17.36% jump in total income to Rs 2,824.19 crore in Q2 September 2020 over Q2 September 2019.
Profit before tax (PBT) soared 11.49% to Rs 1,244.27 crore in Q2 September 2020 as against Rs 1,115.99 crore in Q2 September 2019. Tax expense for the quarter rose 51.13% to Rs 313.60 crore as against Rs 207.50 crore in Q2 September 2019. The Q2 result was declared during trading hours today, 3 November 2020.
During the quarter, consolidated loan assets under management increased by Rs 5,785 crore. Consolidated gross loan assets of the group rose 12% to Rs 52,286 crore in Q2 FY21 as against Rs 46,501 crore in Q1 FY21. Consolidated gross loan assets grew 12% to Rs 52,286 crore in Q2 FY21 from Rs 46,501 crore in Q1 FY21. Group branch network rose 1% to 5,381 units in Q2 FY21 over 5,330 units in Q1 FY21.
On a standalone basis, Muthoot Finance (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 25% at Rs 1,735 crore for H1 FY21 as against Rs 1,388 crore for Q1 FY20. Loan Assets stood at Rs 47,016 crore as at 30 September 2020 as against Rs 35,731 crore as at 30 September 2019, Y-o-Y growth of 32%.
Return on average loan assets stood at 8.10% in Q2 FY21 as against 9.59% in Q2 FY20 and 8.11% in Q1 FY21. Return on Average Equity was at 28.05% in Q2 FY21 as compared to 33.74% in Q2 FY20 and 28.16% in Q1 FY21. Capital Adequacy Ratio stood at 25.73 in Q2 FY21 as against 27.11 in Q2 FY20 and 26.30 in Q1 FY21.
MFIN reported highest ever Q-o-Q growth in gold loan outstanding of Rs 5,739 crore. Average gold loan outstanding per branch crossed Rs 10 crore.
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Commenting on the Q2 results, M G George Muthoot, the chairman of Muthoot Finance, has stated: "We are glad to inform that we could achieve highest ever quarterly growth in gold loan portfolio of Rs 5,739 crs during this quarter i.e., Q-o-Q growth of 14%. With this growth, we achieved a Y-o-Y growth in loan assets of 32% reaching Rs 47,016 crs. We are proud that we are able to support our customers with extra funds during times of their difficulty. We also achieved a Y-o-Y increase of 25% in profit after tax of Rs 1,735 crs for the half year ended September 30, 2020."
George Alexander Muthoot, managing director said, 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. This was supported by adequate BTL and ATL activities as well as digital innovations. We disbursed fresh loans to 4.40lakh new customers amounting to Rs.3,653crs and to 4.67lakh inactive customers amounting to Rs.3,460crs. Our average gold loan outstanding per branch crossed Rs.10crs per branch for the first time. Company has been able to raise funds through bank loans, NCDs and commercial paper issuances regularly. We also maintained a liquidity buffer of Rs.7,946crs as cash, bank and investments in liquid funds as on September 30,2020. Subsidiaries followed a cautious approach towards lending. Non-gold loan portfolio in subsidiaries constituted about 11% of consolidated loan portfolio. Collections in non-gold loan portfolio have significantly improved month on month.
Shares of Muthoot Finance declined 3.54% to Rs 1,193.35 on BSE.
Muthoot Finance is the largest gold financing company in India in terms of loan portfolio.
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