Bengaluru, August 13, 2024:
Consolidated Loan Assets Under Management crosses Rs. 98,000 crores
Highest Ever Consolidated Loan Assets Under Management at Rs. 98,048 crores as on June 30, 2024
Historic Highest YoY Growth in Loan Assets Under Management of Rs. 21,249 crores, up by 28%
Highest Ever Consolidated Profit after Tax at Rs. 1,196 crores for Q1 FY25, up by 14% YoY
Highest Ever Standalone Loan Assets Under Management at Rs. 84,324 crores as on June 30, 2024
Historic Highest YoY Growth in Gold Loan Assets Under Management of Rs. 14,883 crores, up by 23%
Highest Ever Standalone Profit after tax at Rs. 1,079 crores for Q1 FY25, up by 11% YoY
Other Key Highlights:
- Raised USD 650 million through Global issuance of bonds
- Opened 218 new branches by the Group in Q1 FY25
- Muthoot Finance became the only Indian NBFC selected for Financial Action Task Force (FATF) On-site Mutual Evaluation Report on India conducted in November 2023 where India received Outstanding Outcome and placed it in the ‘regular follow-up’ category.
- Muthoot Finance launched two new ad films as part of its ‘Bharosa India Ka’ brand campaign
Key Subsidiaries – ‘Continued strong growth momentum’
Belstar Microfinance
- Collection Efficiency remaining more than 98% for Regular accounts
- Increase in Profit After Tax in Q1 FY 25 at Rs. 90 crores vs. Rs. 52 crores in Q1 FY 24; growth of 74% YoY
- Increase in Gross Loan AUM of 42% YoY at Rs.9952 crores in Q1 FY25 from Rs. 7,008 crores in Q1FY24
- Opened 6 new branches in Q1 FY25, total branches as on Q1 FY 25 is 1020 vs 782 branches on Q1 FY 24
Muthoot Homefin
- Loan AUM at Rs. 2,199 crores in Q1 FY25 vs. Rs. 1,501 crores in Q1 FY24; growth of ~47% YoY
- Disbursed loans of Rs. 221 crores in Q1 FY25 as compared to Rs. 109 crores in Q1 FY24; a growth of ~102% YoY
- Interest income increased at ~55% YoY to Rs. 58 crores in Q1 FY25 vs. Rs. 37 crores in Q1 FY24
- Profit After Tax stood at Rs. 8 crores in Q1 FY25 vs. Rs. 5 crores in Q1 FY24; ; growth of ~63% YoY
- GNPA at 1.75 % in Q1 FY25 vs. 3.97% in Q1 FY24; NNPA at 0.52% in Q1 FY25 vs. 1.21% in Q1 FY24
Muthoot Money
- Loan AUM at Rs. 1,657 crores in Q1 FY25 vs. Rs. 496 crores in Q1 FY24; growth of ~234% YoY
- Continued decline in NPA through physical collections witnessed consistently throughout the year. GNPA decreased to 1.63% in Q1 FY25 from 2.43% in Q1 FY24
- Branch network increased to 674 from 470 during Q1 FY25
Results
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 June 30, 2024.
Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets Under Management grew 28% YoY to Rs. 98,048 crores in Q1 FY25 as against Rs. 76,799 crores last year. During the quarter, Consolidated Loan Assets Under Management increased by 10% of Rs. 8,969 crores. Consolidated Profit after tax increased by 14% YoY to Rs. 1,196 crores as against Rs. 1045 crores last year.
(Rs. in crores)
| Financial Performance | Q1 FY25 | Q4 FY24 | QoQ % | Q1 FY24 | YoY % | FY24 |
| Group Branch Network | 6,759 | 6,541 | 3% | 5,897 | 15% | 6,541 |
| Consolidated Gross Loan Assets of the Group | 98,048 | 89,079 | 10% | 76,799 | 28% | 89,079 |
| Consolidated Profit of the Group | 1,196 | 1,182 | 1% | 1,045 | 14% | 4,468 |
| Contribution in the Consolidated Gross Loan Assets of the Group | ||||||
| Muthoot Finance Ltd | 83,604 | 75,327 | 11% | 67,259 | 24% | 75,327 |
| Subsidiaries | 14,444 | 13,752 | 5% | 9,540 | 51% | 13,752 |
| Contribution in the Consolidated Profit of the Group | ||||||
| Muthoot Finance Ltd | 1,071 | 1050 | 2% | 971 | 10% | 4,029 |
| Subsidiaries | 125 | 132 | -6% | 74 | 69% | 439 |
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 profit after tax of Rs. 1,079 crores in Q1 FY25 as against Rs. 975 crores in Q1 FY24, an increase of 11 % YoY. Loan AUM stood at Rs. 84,324 crores in Q1 FY25 as compared to Rs. 67,639 crores in Q1 FY24, registering a growth of 25% YoY. During the quarter, Loan assets increased by Rs. 8,497 crores registering a growth of 11%. Gold Loan assets increased by Rs. 8,043 crores registering a growth of 11%.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan AUM stood at Rs.2,199 crores in Q1 FY25 as against Rs.1,501 crores in Q1 FY24, an increase of 47% YoY. The loan disbursement for Q1 FY25 stood at Rs.221 crores as against Rs.109 crores in Q1 FY24, a YoY increase of 103%. Total revenue for Q1 FY25 stood at Rs.73 crores as against Rs.44 crores in Q1 FY24, registering a growth of 66% YoY. Profit after tax stood at Rs. 8 crores in Q1 FY25 as against Rs.5 crores in Q1 FY24, an increase of 60% YoY. Stage III Asset stood at 1.75% as of June 30, 2024 as compared to 1.88% last year.
M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC, and a subsidiary company where Muthoot Finance holds 66.13% stake. Loan AUM for Q1 FY25 increased to Rs.9,952 crores as against Rs.7,008 crores in Q1 FY24, an increase of 42% YoY. Profit after tax stood at Rs.90 crores in Q1 FY25, as against Rs.52 crores in Q1 FY24, an increase of 73% YoY. Stage III Asset stood at 2.35% as of June 30, 2024 as compared to 1.82% last year.
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.148 crores in Q1 FY25. Total revenue for Q1 FY25 stood at Rs.44 crores. It achieved a Profit after tax of Rs.16 crores in Q1 FY25.
Asia Asset Finance PLC (AAF), is a listed subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio stood at LKR 2,335 crores in Q1 FY25, as against LKR 2,010 in the same quarter last year. Total revenue for Q1 FY25 stood at LKR 152 crores as against LKR 172 crores in Q1 FY24. It achieved a Profit after tax of LKR 12 crores in Q1 FY25, as against profit of LKR 6 crores in the same quarter last year.
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 mainly in extending gold loans and loans for commercial vehicles and equipment. Loan portfolio for Q1 FY25 stood at Rs.1,657 crores, as against Rs. 496 crores in Q1 FY24, an increase of 234 % YoY. During the quarter, Loan AUM increased by Rs. 534 crores, an increase of 48% QoQ. Total revenue for Q1 FY25 increased to Rs. 60 crores as against Rs. 21 crores in Q1 FY24, an increase of 185% YoY.
Mr. George Jacob Muthoot, Chairman said “Muthoot Finance has begun FY25 with a strong quarter with our Consolidated Loan Assets Under Management reaching highest ever level of Rs. 98,048 crores and Standalone Loan Assets Under Management reaching highest ever level of Rs. 84,324 crores. It reflects a robust growth of 28% YoY in Consolidated Loan Assets Under Management driven by 51% growth in Loan Assets of subsidiaries from Rs. 9,540 crores to Rs.14,444 crores and 24% growth in Loan Assets of Muthoot Finance from Rs.67,259 crores to Rs. 83,604 crores. Our subsidiaries have continued the strong growth momentum, contributing significantly to our consolidated loan assets which now stand at 15%. Consolidated Profit after Tax also grew by 14% YoY to Rs. 1,196 crores. The contribution of our subsidiaries in consolidated Profit After Tax stand at 10% in Q1 FY25, reflecting our focus on emerging as a diversified financial services group. In the backdrop of India being on a positive growth trajectory, evolving as an attractive global investment destination, the financial sector is set to play a crucial role in this journey. With sweeping digitization across financial sector, we will continue to intensify our digital efforts to improve access to credit and include customers across the social pyramid. As we continue to retain our leadership position in gold loan industry, our strategic emphasis on digital initiatives and the expansion of our non-gold loan portfolio positions us well for sustained success in FY25 and beyond.”
Commenting on the Company’s performance, Mr. George Alexander Muthoot, Managing Director, said, “We had an impressive start to the year with our Standalone Loan Assets Under Management reaching a historic high of Rs.84,324 crores, driven by robust 23% YoY growth in gold loan of Rs.14,883 crores and a 11% QoQ increase of Rs. 8,043 crores. This growth is a testament to our three-pronged strategy to focus on disbursements, operational efficiency, and maintaining healthy margins. In this quarter, Gold Loan disbursements was the highest ever in any quarter amounting to Rs.73,648 crores. Further, the Gold Loan disbursements to new customers was also the highest ever in any quarter amounting to Rs .5,651 crores. As a result, our Standalone Profit after Tax for Q1 FY25 grew by 11% to reach Rs. 1,079 crores. As we continue our efforts to diversify our loan book, our non-gold segments including microfinance loans, personal loans, and home loans have also shown significant progress, contributing to a well-rounded financial performance. The housing finance arm achieved disbursements of Rs.221 crores in Q1 FY25 as against Rs.109 crores in Q1 FY24, a YoY increase of 102%. Our microfinance arm saw its Loan AUM for Q1 FY25 increasing to Rs.9,952 crores as against Rs.7,008 crores in Q1 FY24, an increase of 42% YoY.
Additionally, the Union Budget’s emphasis on MSMEs, women entrepreneurs, and the agricultural sector is particularly encouraging for us. The credit guarantee scheme will significantly enhance credit access for MSMEs, aligning perfectly with our commitment to supporting entrepreneurs with our small business loans. We are also in alignment with the initiative announced by the FM to boost the job creation and employability for the women and young talent and aim to offer valuable contribution in India Inc’s growth. This outlook, coupled with our strategic initiatives positions us well to achieve our growth targets for FY25.”
Other Highlights:
Financial Highlights (MFIN):
Standalone results for Muthoot Finance Ltd. (Rs. in Crores)
| Particulars | Q1 FY25 | Q4 FY24 | QoQ % | Q1 FY24 | YoY % |
| Total Income | 3,710 | 3,418 | 9% | 3,026 | 23% |
| Profit Before Tax | 1,492 | 1,424 | 5% | 1,315 | 13% |
| Profit After Tax | 1,079 | 1056 | 2% | 975 | 11% |
| Earnings Per Share (Basic) Rs. | 26.87 | 26.32 | 2% | 24.29 | 11% |
| Loan Assets | 84,324 | 75,827 | 11% | 67,639 | 25% |
| Branches | 4,855 | 4,854 | 0% | 4,742 | 2% |
| Particulars | Q1 FY25 | Q4 FY24 | Q1 FY24 |
| Return on Average Loan assets | 5.39% | 5.75% | 5.96% |
| Return on Average Equity | 17.73% | 17.78% | 18.47% |
| Book Value Per Share (Rs.) | 607.21 | 604.95 | 527.42 |
| Particulars | Q1 FY25 | Q4 FY24 | Q1 FY24 |
| Capital Adequacy Ratio | 27.47 | 30.37 | 30.03 |
| Share Capital & Reserves (Rs. in Cr) | 24,381 | 24,290 | 21,177 |
Business Highlights (MFIN):
| Particular | Q1 FY25 | Q1 FY24 | Growth (YoY) |
| Branch Network | 4,855 | 4,742 | 2% |
| Gold Loan Outstanding (Rs. in Cr) | 80,922 | 66,039 | 23% |
| Credit Losses (Rs. in Cr) | 12.79 | 4.72 | 171% |
| % of Credit Losses on Gross Loan Assets Under Management | 0.02% | 0.01% | 58% |
| Average Gold Loan per Branch (Rs. In Cr) | 16.67 | 13.93 | 20% |
| No. of Loan Accounts (in lakh) | 92 | 83 | 11% |
| Total Weight of Gold Jewellery pledged (in tonnes) | 194 | 182 | 7% |
| Average Loan Ticket Size | 88,116 | 79,216 | 11% |
| No. of employees | 27,961 | 27,701 | 1% |
Our Subsidiaries:
(SHG) program. The company commenced its first lending operations at Haveri District of Karnataka in March 2009 to 3 SHGs, 22 members for INR 0.2 million.
In the last fifteen years of its operations, BML primarily relied on taking over the existing groups formed by Hand in Hand India. BML predominantly follows the SHG model of lending. Effective January 2015, BML started working in JLG model of lending in Pune district, Maharashtra.
As of June 30, 2024, BML operations are spread over 17 states and 2 UT (Tamil Nadu, Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Chhattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Uttarakhand, West Bengal, Pondicherry, Haryana, Punjab, Tripura and Delhi). It has 1020 branches, with 202 controlling regional offices and employing 11,202 staff. Loan AUM has grown to Rs.9,952 crores as of June 30, 2024 as against Rs.7,008 crores during same quarter last year. Net Profit after tax for Q1 FY25 increased to Rs.90 crores as against Rs.52 crores in Q1 FY24, and Net worth stood at Rs.1,818 crores as of June 30, 2024.
CRISIL has assigned the long term debt rating of ‘CRISIL AA/Stable’ for its Bank Limits and Debt Instruments which indicates, “high degree of safety regarding timely servicing of financial obligations and carry very low credit risk”.
Key Financial Parameters: (Rs. in crores)
| Particulars | Q1 FY25 | Q4 FY24 | Q1 FY24 | FY24 |
| No. of branches | 1,020 | 1,014 | 782 | 1,014 |
| No. of Employees | 11,202 | 10,559 | 8,421 | 10,559 |
| Loan AUM | 9,952 | 10,023 | 7,008 | 10,023 |
| Loan Assets | 8,773 | 8,561 | 5,591 | 8,561 |
| Capital Adequacy Ratio | 21% | 21% | 22% | 21% |
| Total Revenue | 573 | 556 | 360 | 1,851 |
| Total Expense | 455 | 422 | 293 | 1,410 |
| Profit Before Tax | 118 | 135 | 68 | 442 |
| Profit After Tax | 90 | 105 | 52 | 340 |
| Shareholder’s Funds | 1,818 | 1,729 | 1,145 | 1,729 |
| Total Outside Liabilities | 7,568 | 7,630 | 5,239 | 7,630 |
| Total Assets | 9,386 | 9,359 | 6,384 | 9,359 |
| Stage III Loan Assets | 209 | 157 | 91 | 157 |
| % Stage III asset on Gross Loan Asset | 2.36% | 1.82% | 1.62% | 1.82% |
| Stage III ECL Provision | 186 | 142 | 79 | 141 |
| ECL Provision | 313 | 234 | 110 | 234 |
| ECL Provision as a % of Gross Loan Asset | 3.56% | 2.73% | 1.97% | 2.73% |
