Conference Call with Muthoot Microfin Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance (including NBFCs) company Muthoot Microfin announced Q2FY25 results Financial Highlights: Total income grew by 18.0% YoY, from Rs 565 crore to Rs 667 crore. AUM increased by 15.2% YoY, from Rs 10,867 crore in Q2FY24 to Rs 12,518 crore in Q2FY25. NIM rose by 57 bps, from 12.79% in Q2FY24 to 13.36% in Q2FY25. PPOP increased by 26.0% YoY, from Rs 187 crore in Q2FY24 to Rs 236 crore in Q2FY25. GNPA increased by 33 bps YoY, from 2.37% in Q2FY24 to 2.70% in Q2FY25. CoF decreased by 14 bps, from 11.20% in Q2FY24 to 11.06% in Q2FY25. Business Highlights: GLP grew by 15.2% YoY from Rs 10,867 crore to Rs 12,518 crore; company disbursed Rs 2,674 crore. Borrower base grew by 7.7% YoY from 32 lakh to 34 lakh across 1,593 branches. The branch count grew by 18.9% YoY as the company added 31 new branches in Q2. South now comprises 50% of portfolio as the company makes inroads to two new states - Telangana and Andhra Pradesh. Thomas Muthoot, Managing Director of Muthoot Microfin, said: "Amid recent industry challenges, Muthoot Microfin delivered a solid performance this quarter, achieving a 15.2% YoY increase in our Gross Loan Portfolio, now at Rs 12,518 crore. We also added 31 new branches during this period. Our disciplined lending practices, backed by robust underwriting standards and prudent NATCAT policies, have driven sustainable portfolio growth while preserving asset quality. This quarter, we maintained a GNPA of 2.70% and NNPA of 0.97%, underscoring the strength of our portfolio. As we look ahead, we are prepared to accelerate our growth trajectory in this evolving industry landscape. With the implementation of SRO guardrails, we are committed to upholding high standards that will further strengthen stakeholder confidence and enhance the industry’s reputation.” Sadaf Sayeed, CEO, Muthoot Microfin, said: “The company has cautiously inched up disbursements to Rs 2,674 crore in the September quarter, up from Rs 2,204 crore in the previous quarter and returning to similar levels as last year. We expect growth to reaccelerate in coming quarters with usual seasonal upswing coupled with our focus on harnessing existing customers and strengthening our core geographies. Our asset quality remains stronger-than-peers led by our core mature southern markets and our robust underwriting and collection practices. During Q2, we have gone a step further and adopted a stance of being far more conservative providing additional Macro enabled overlay of 31.2 crore given bulging industry concerns. This increase in provisioning has resulted in creating Rs 153 crore surplus to IRAC prudential norms. Our willingness to invest against profitability has negatively impacted our ROA during the quarter which has gone down to 2.00%. We continue to underpin our ambition of industry leading returns and recalibrate our FY25 ROA guidance to 3.0-3.5% acknowledging the uncertainty prevailing within the industry while maintaining a continuous focus on balancing growth, profitability, and liquidity.” Result PDF
Conference Call with Muthoot Microfin Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company Muthoot Microfin announced Q1FY25 results: Financial Highlights: Total income increased by 33.5% YoY from Rs 480 crore to Rs 641 crore Net interest income (NII) increased by 36.6% YoY from Rs 280 crore to Rs 383 crore Pre-provision operating profit (PPOP) increased by 50.4% YoY from Rs 148 crore to Rs 223 crore Profit After Tax (PAT) up by 18.3% YoY from Rs 96 crore to Rs 113 crore The GNPA of the Company is at 2.10% as against GNPA of 2.75% a year ago, NNPA (Net of Stage III provision)* stood at 0.71% as against 1.09% last year. The GNPA improved by 65 bps and NNPA* by 38 bps. Robust liquidity of Rs 1,070 crore of unencumbered cash and cash equivalents, 9% of the total assets alongside unutilized sanctions totalling Rs 3,159 crores. Healthy capital position with a CRAR of 30.29% 26.8% of our collections are via digital channels such as UPI/Customer App, while 100% disbursements are entirely executed digitally Business Highlights: GLP grew by 21.6% YoY from Rs10,038 crore to Rs 12,210 crore; company disbursed Rs 2,204 crore Borrower base grew by 13.1% YoY from 30 lakhs to 34 lakhs across 1,562 branches. The branch count grew by 27.0% YoY as the company added 54 new branches in Q1. South now comprises 51% of portfolio as the company makes inroads to two new states - Telangana and Andhra Pradesh During the quarter Muthoot Microfin Ltd received Corporate Agent licence from IRDAI; enabling customized insurance plans to customers while augmenting its sources of revenue and earnings Entered into Co-lending Agreement with State Bank of India to empower women entrepreneurs in rural and semi-urban regions Lowered interest rates by 35 bps in July; second rate reduction introduced this year bringing down effective lending rate from 23.65% to 23.30% Greenshoe portion of the ECB oversubscribed from USD 25 million to USD 38 million; closure at USD 113 Million Thomas Muthoot, Managing Director of Muthoot Microfin, said- “Q1FY25 was a challenging quarter. In spite of the long duration of general elections, we managed to maintain the growth momentum. Despite these temporary disruptions, we remained resilient and continue to focus on steady portfolio growth driven by customer acquisition and the expansion of our branch network. Our scale enables us to achieve greater operating efficiencies, and with stable NIMs and robust asset quality, we are in a position to implement and execute the growth plans with greater confidence.” Sadaf Sayeed, CEO, Muthoot Microfin, said- “Reflecting on our Q1FY25, we are proud with our consistent operating performance. In spite of the elections, heatwaves and seasonal factors at play during the quarter, AUM growth remained strong at 21.6% YoY driven by expansion in branches and acquisition of customeRs Our core states in South remain resilient showing no stress from elections, agitations or natural calamities. We recently entered Telangana and plan to venture in Andhra Pradesh in the coming quarteRs We see a lot of untapped potential and believe a large chunk of growth in future to be also driven by further penetration into these markets. Our NIMs remain steady and we have passed two consecutive rate cut benefits during 2024 to our customeRs Our cost of borrowings too has improved sequentially and incremental cost stands at healthy 10.3%. We continue to reaffirm our guidance to full year numbers led by our robust regional mix, strong asset quality, Tech innovations and efficient liability franchise." Result PDF
Finance company Muthoot Microfin announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Total income increased by 45.8% YoY from Rs 448.2 crore to Rs 653.4 crore Net interest income (NII) increased by 47.0% YoY from Rs 272.1 crore to Rs 400.1 crore Pre-provision operating profit (PPOP) increased by 62.7% YoY from Rs 150.1 crore to Rs 244.1 crore Profit After Tax (PAT) increased by 26.7% YoY from Rs 94.6 crore to Rs 119.8 crore FY24 Financial Highlights: Total income increased by 58.0% YoY from Rs 1,446.3 crore to Rs 2,285.5 crore Net interest income (NII) increased by 55.7% YoY from Rs 874.4 crore to Rs 1,361.1 crore Pre-provision operating profit (PPOP) increased by 75.1% YoY from Rs 436.1 crore to Rs 763.8 crore Profit After Tax (PAT) increased by 174.3% YoY from Rs 163.8 crore to Rs 449.5 crore The GNPA of the Company is at 2.3% as against GNPA of 2.9% a year ago, NNPA stood at 0.4% as against 0.6% last year. The GNPA improved by 68 bps and NNPA by 25 bps. Collection Efficiency at 98.4% up 260 bps Robust liquidity of Rs 957.7 crore of unencumbered cash and cash equivalents, 8.3% of the total assets alongside unutilized sanctions totalling Rs 2,119 crore. Healthy capital position with a CRAR of 28.9% 26.3% of collections are via digital channels such as UPI/Customer App, while 100% disbursements are entirely executed digitally. Thomas Muthoot, Managing Director of Muthoot Microfin, said- “We are pleased to share yet another quarter and fiscal of impressive financial performance, showcasing steady growth in our portfolio led by the acquisition of more customers and expansion of branch network of company. The scale that we have will allow greater operating efficiencies and with stable NIMs and robust asset quality that we have achieved gives us several reasons to believe our performance will continue to improve. Our ROA doubled up to 4.2% in FY24 and the quarter was the fifth straight quarter of RoA remaining above 4%. Our ROE has surpassed our annual guidance led by significantly improved profitability as we continue to deliver outsized returns to our shareholders. We will continue to focus our strategic efforts to grow steadily and responsibly while ensuring excellent corporate governance, operational agility, and resilience. As a responsible MFI player, our mission extends well beyond profit margins. We combine our robust business performance with social responsibility to contribute to a better and more inclusive society.” Sadaf Sayeed, CEO, Muthoot Microfin, said- "Reviewing our FY24 performance, we take great pride in consistently achieving excellence across all key parameters. Our assets under management have surged by 32% year-on-year, reaching Rs 12,193.5 crore, while we have ended the year with Total income and net profit at new highs. Total income for the year increased by 58.0% YoY from Rs 1,446.3 crore to Rs 2,285.5 crore and Net Profit rose by 174.3% YoY from Rs 163.9 crore to Rs 449.6 crore. The notable improvement in our NPA figures, with NNPA standing at 0.4%, reflects our steadfast commitment to maintaining a robust and healthy loan portfolio. Additionally, we have successfully raised USD 75 million via ECB which further enables us by advancing our liquidity and is a step towards funding diversification and effective ALM management. Our strategic expansion into Telangana and upcoming plans for Andhra Pradesh underscore our commitment to align our growth aspirations with fostering financial inclusion and driving socio-economic progress.” Result PDF