Conference Call with Muthoot Finance Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company Muthoot Finance announced Q1FY25 results: Financial Highlights: Consolidated Loan Assets Under Management crosses Rs 98,000 crore Highest Ever Consolidated Loan Assets Under Management at Rs 98,048 crore as on June 30, 2024 Historic Highest YoY Growth in Loan Assets Under Management of Rs 21,249 crore, up by 28% Highest Ever Consolidated Profit after Tax at Rs 1,196 crore for Q1FY25, up by 14% YoY Highest Ever Standalone Loan Assets Under Management at Rs 84,324 crore as on June 30, 2024 Historic Highest YoY Growth in Gold Loan Assets Under Management of Rs 14,883 crore, up by 23% Highest Ever Standalone Profit after tax at Rs 1,079 crore for Q1FY25, up by 11% YoY Business Highlights: Raised USD 650 million through Global issuance of bonds Opened 218 new branches by the Group in Q1FY25 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 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 crore and Standalone Loan Assets Under Management reaching highest ever level of Rs 84,324 crore. 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 crore to Rs.14,444 crore and 24% growth in Loan Assets of Muthoot Finance from Rs.67,259 crore to Rs 83,604 crore. 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 crore. The contribution of our subsidiaries in consolidated Profit After Tax stand at 10% in Q1FY25, 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, 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 crore, driven by robust 23% YoY growth in gold loan of Rs.14,883 crore and a 11% QoQ increase of Rs 8,043 crore. 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 crore. Further, the Gold Loan disbursements to new customers was also the highest ever in any quarter amounting to Rs .5,651 crore. As a result, our Standalone Profit after Tax for Q1FY25 grew by 11% to reach Rs 1,079 crore. 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 wellrounded financial performance. The housing finance arm achieved disbursements of Rs.221 crore in Q1FY25 as against Rs.109 crore in Q1FY24, a YoY increase of 102%. Our microfinance arm saw its Loan AUM for Q1FY25 increasing to Rs.9,952 crore as against Rs.7,008 crore in Q1FY24, 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.” Result PDF
Conference Call with Muthoot Finance Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
Finance company Muthoot Finance announced FY24 results: Highest Ever Consolidated Loan AUM: 25% YoY Increase at Rs 89,079 crore Highest Ever Standalone Loan AUM: 20% YoY Increase at Rs 75,827 crore Highest Ever Consolidated Profit After Tax: 22% YoY Increase at Rs 4,468 crore Highest Ever Standalone Profit After Tax: 17% YoY Increase at Rs 4,050 crore Highest Ever Gross Gold Loan Advance in any Year: Rs 1,65,746 crore Highest Ever Gold Loan Advance to New Customers in any Year: Rs 16,415 crore Increase in Gold Loan AUM: 18% YoY of Rs 11,003 crore All Time High Interest Collection in any Year: Rs 10,984 crore Highest Ever Dividend in any Year: 240% at Rs 24 per Equity Share George Alexander Muthoot, Managing Director said,"We take immense pride in achieving a loan growth of 20% as against a guidance of 15% in FY24. In Q4FY24, the Standalone Loan AUM witnessed a historic high of Rs 75,827 crore, driven by the robust growth in Gold Loan of Rs 3,657 crore. The Standalone Profit after Tax for FY24 increased by 17% YoY at Rs 4,050 crore. This year, we achieved the highest ever Gold Loan advance to new customers of Rs 16,415 crore, reinforcing our position as a trusted partner in the gold loan industry. Complementing our core gold loan business, our non-gold loan offerings continued to gain traction, with our microfinance loans, personal loans, and home loans playing a pivotal role in diversifying our overall loan book. The housing finance arm achieved disbursements of Rs 815 crore in FY24 as against Rs 223 crore in FY 23. The micro finance arm also witnessed upward trend, with increased Loan AUM by 62% YoY reaching Rs 10,023 crore and Profit after Tax by 161% YoY of Rs 340 crore. As part of our transformational journey, in FY24, we also focused on boosting our digital business and tapping new techsavvy millennials and Gen Z customers. Our phygital strategy has yielded positive results with critical infrastructure already in place to move remaining gold and non-gold customers to digital channels who were hitherto transacting in cash. We are confident that the impact of regulatory norm of Rs 20,000 cash disbursal limit on our business and volumes will be limited since it is an industry wide move. In alignment with strict vigilance from regulators on the NBFC industry, we also remain committed to maintaining the highest standards of corporate governance and compliance.” Result PDF