Muthoot Finance zooms as Q2 PAT rises 26% YoY; foreign broker lifts tgt price

Muthoot Finance advanced 5.55% to Rs 1,876.35 after the company reported 26.25% jump in standalone net profit to Rs 1,251.14 crore on 34.57% increase in total income to Rs 4,117.44 crore in Q2 FY25 over Q2 FY24.

Sequentially, the NBFC's net profit and total income in Q2 FY25 jumped 15.99% and 11.17%, respectively.

Profit before tax advanced 28.4% to Rs 1,707.96 crore in Q2 FY25 as compared with Rs 1,330.22 crore posted in Q2 FY24.

Loan assets (AUM) stood at Rs 90,197 crore in the quarter ended September 2024, registering a growth of 31% YoY.

India's largest gold loan NBFC's consolidated net profit increased 20.63% to Rs 1,321.22 crore on 36.68% rise in revenue from operations to Rs 4,928.82 crore in Q2 FY25 over Q2 FY24.

 

Muthoot Finance consolidated Loan Assets Under Management (AUM) grew 31% YoY to Rs 1,04,149 crore in Q2 FY25.

George Jacob Muthoot, chairman, The Muthoot Group said, As Indias economic and investment activities gain momentum, we are steadfast in our vision to diversify our portfolio beyond gold loans, evolving as a comprehensive financial services group.

George Alexander Muthoot, managing director, said, We are pleased to announce that we have achieved exceptional financial results for the first half of FY25. Our standalone loan AUM reached a historic high of Rs 90,197 crore, driven by a robust 28% YoY growth in our core gold loan portfolio. Our standalone profit after tax grew by 18% YoY at Rs 2330 crore. This half year saw the highest-ever gold loan disbursements to new customers of Rs 10,687 crore to 9.66 lakh customers.

Among the peer NBFC group, we have the highest average gold loan AUM per branch of Rs 17.75 crore. During the half year, gold loan portfolio grew by 18% of Rs 13,285 crore. On the back of these achievements, wewish to revise our earlier guidance for FY25 on gold loan growth from 15% to 25%. We are also encouraged by the progress in our non-gold loan portfolio, with notable growth across microfinance, personal loans, and home loans, strengthening our position as a diversified financial services conglomerate.

Following the Q2 results, a foreign brokerage firm upgraded Muthoot Finance stock to 'Equal-weight' from 'Underweight' and raised the target price to Rs 1,600 from Rs 1,430.

Muthoot Finance is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, education and hospitality. It is India's largest gold loan focused NBFC.

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