Muthoot Finance's (MUTH) reported PAT for 1QFY17 grew by 48% YoY and 2% QoQ to INR2.70b (24% beat v/s our estimate of INR2.18b). The strong performance was led by a revival in AUM growth (+6% QoQ) and improvement in yields on the back of lower auction losses. Firm gold prices helped the company to settle recoveries from overdue accounts. Share of overdue accounts declined from 25% in 3QFY16 to 13% in 4QFY16 and to 8% in 1QFY16 led by collection efforts. AUM for the quarter stood at INR258.6b, up 5.9% YoY and 6.1% QoQ. Management has turned optimistic on 6% QoQ growth achieved this quarter, and...