Muthoot Finance Q3 Results FY2023, Net profit at Rs. 934 crores

On 4th February,  Muthoot Finance announced its results for the third quarter of FY2023.

Key Highlights:

- Muthoot Finance Ltd Consolidated Loan Assets Under Management grew 7% YoY to Rs.65,085 crores in Q3FY23 as against Rs.60,896 crores in the same quarter last year.
- Total Income stood at Rs. 2667 crores, down by 7% YoY.
- During the quarter, Consolidated Loan Assets Under Management increased by 1%. 
- Consolidated Profit after tax increased by 4% QoQ to Rs.934 crores as against Rs.902 crores in the last quarter.

Business Highlights:

- Opened 54 new branches in Q3FY23 
- Raised Rs.422 crores through the 28th and 29th Public Issue of Secured Redeemable NonConvertible Debentures 
- Launched a 360-degree marketing campaign showcasing the message 'Put your Gold to Work' 
-  Muthoot Finance Ltd (MFIN), India’s largest gold financing company in terms of the loan portfolio, registered a net profit of Rs. 902 crores in Q3FY23 as against Rs.867 crores in Q2FY23, an increase of 4% QoQ.
- Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, Gross Loan AUM stood at Rs.1,410 crores as against Rs.1,579 crores in the same quarter last year. 
- M/s. Belstar Microfinance Limited (BML), an RBI registered micro finance NBFC and a subsidiary company where Muthoot Finance holds a 56.97% stake, grew its Gross Loan AUM to Rs. 5,341 crores as against last year of Rs. 3,836 crores, registering a YoY growth of 39%.
- 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. 165 crores in Q3FY23 and Rs. 447 crores in 9MFY23 as against Rs. 134 crores and Rs. 293 crores in the previous year.
- Asia Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot Finance holds a 72.92% stake. 
- MML is an RBI registered Non-Banking Finance Company engaged mainly in extending loans for commercial vehicles and equipment. The loan portfolio for Q3FY23 increased to Rs.293 crores as against Rs.236 crores in the same quarter last year.

Commenting on the results, Mr. George Jacob Muthoot, Chairman of Muthoot Group said, “We have reported a steady performance during the quarter. Our consolidated loan assets stand at Rs.65,085 crores and have registered a growth of 7% YoY. Consolidated Profit after Tax has grown 4% and stands at Rs.934 crores for Q3FY23. The contribution of our subsidiaries to the overall consolidated AUM improved slightly to 12%, and going ahead we expect the share of non-gold AUM to gradually rise. It is to be noted that despite the challenges, efforts by the NBFC sector have increased the visibility of gold loans as a safe, secured lending product. We are hopeful that our expertise in the product would help us capitalize on this positively in the coming quarters”. 

Mr. George Alexander Muthoot, Managing Director said, " Muthoot Finance registered a YoY growth of 6% in loan assets and marginal QoQ growth in gold loans of less than 1%. The yield on the loan portfolio witnessed a QoQ increase of 0.84% consequent to the stoppage of very low-rate teaser loans. Borrowing costs slightly rose to 8.13% due to the impact of a general increase in the interest rates with banks' MCLR being constantly revised and fresh NCDs being raised at higher rates. Our continued focus on loan disbursements, recovery efforts, and keeping our borrowing costs under check could enable us to maintain our NIMs in the range of 11-12%. Return on assets for the quarter improved to 6.27%.”