Muthoot Finance (MUTH) reported robust growth in gold AUM at 32% YoY vs 16% YoY (Q1FY21); however profitability growth was lower at 4% YoY due to higher tax rate and decline in NIMs. NII grew by 10% YoY led by decline in margins; while PPoP grew by 13% YoY led by higher other income (up 123% YoY). Provisions declined as asset quality improved in gold loan portfolio due to interest collection and refinancing at higher gold prices. Stage III loan assets declined by 130bps QoQ to 1.26%, however NPA is never a cause of concern in gold loan. We believe that MUTH with ~89% of AUM in the Gold loan portfolio has lower risk of loss of assets versus other NBFCs. We introduce FY23...