Muthoot Capital Services Limited (MCSL), the auto loan vertical of Muthoot Group, is planning to disburse Rs 752 crore in the current financial year.
Addressing a press conference here on Monday, Thomas George Muthoot, managing director, said the mainstay of the business would be the two and three wheeler segment for which the company had earmarked Rs 601 crore. During 2012-13, MCSL had disbursed loans to the tune of Rs 431 crore.
He said the company would foray into states like Madhya Pradesh, Punjab and Rajasthan in the current year. It has started business in Gujarat and Maharashtra during last year. The company is set to commence giving loans to tractors and used cars, starting from Tamil Nadu in the current year. To offer tractor loans,the company had tied up with both Mahindra and Escorts.
It will also provide facility to pledge gold ornaments against loans instead of vehicles. Last year, MCSL had tied up with companies like Hero Electric, Mahindra and Piaggio for extending auto loans.
Muthoot will add 150 dealer points across the country in the current financial year. The company is currently sourcing business from 600 plus dealerships, the majority of these being Hero and Honda which together contribute 80 per cent to the total business.
Net profit rises 3%
MSCL reported a net profit of Rs 6.58 crore for the quarter ended March 31, 2013, up 3 per cent from Rs 6.39 crore during the corresponding quarter last year. Total revenue increased 38 per cent to Rs 32.61 crore, compared with Rs 23.69 crore.
It recorded a 40 per cent rise in net profit to Rs 21.76 crore in 2012-13 as compared with Rs 15.51 crore in the previous year.
Total revenues for the year reached Rs 107.22 crore from Rs 67.35 crore, a growth of 59 per cent.
Loan disbursements for the year ended March 31, 2013, jumped 49 per cent to Rs 431.16 crore as against Rs 288.45 crore in the previous year.
The board of directors announced a dividend of Rs 4 per each share.Disbursals in the two-three wheeler segment so far had crossed 213,000.
