Retail Loan Assets Under Management at Rs.24990crs as at 31st December 2015
Total Income for Q3FY16 at Rs.1141crs
PAT increased by 21% for Q3FY16 at Rs.187crs
Branch Network of 4259 spread across 27 States including Union Territories
Kochi, January 28, 2016:
Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 21%, at Rs.187crs for the quarter ended December 2015 as against Rs.154crs in last year. Retail loans registered an increase of Rs.117crs during the quarter and Rs.1582crs at 7% during the last 9 months.
Asia Asset Finance Plc, our Sri-Lankan subsidiary has made considerable progress in its business. This will be the first complete financial year after becoming subsidiary of Muthoot Finance. The synergies created are already depicted in its financial results for the nine months. The interest income of the company has increased by 42% at LKR 983 Million, which has contributed to the overall improvement of its profitability by 54% reaching LKR 121 Million. The companies’ asset base grew by 36% reaching the LKR 7 Billion milestone. The introduction of Gold Loans and the expansion of Micro Finance portfolio have been the key contributors to this year’s growth.
Financial Highlights:
| Q3 FY16
(Rs.in Crs) |
Q3 FY15
(Rs.in Crs) |
YoY % Qtly change | 9M FY16 (Rs.in Crs) | 9M FY15 (Rs.in Crs) | YoY % 9M change | FY 15 (Rs. In Crs) | |
| Total Income | 1141 | 1069 | 7% | 3424 | 3222 | 6% | 4325 |
| Profit Before Tax | 290 | 238 | 22% | 842 | 771 | 9% | 1028 |
| Profit After Tax | 187 | 154 | 21% | 544 | 505 | 8% | 671 |
| Earnings Per Share(Basic) | 4.69 | 3.88 | 21% | 13.68 | 12.81 | 7% | 16.97 |
| Retail Loan AUM | 24990 | 22088 | 13% | 24990 | 22088 | 13% | 23408 |
| Q3 FY16 | Q3 FY15 | 9M FY16 | 9M FY15 | FY 15 | ||||
| Return on Average Retail Loans | 2.99% | 2.80% | 2.97% | 3.09% | 3.03% | |||
| Return on Average Equity | 13.95% | 12.53% | 13.79% | 14.53% | 14.35% | |||
| Book Value Per Share (Rs. in crs) | 136.70 | 126.00 | 136.70 | 126.00 | 127.59 | |||
| Q3 FY16 | Q3 FY15 | FY 15 | ||||||
| Capital Adequacy Ratio | 23.37% | 26.26% | 24.78% | |||||
| Share Capital & Reserves (Rs. in Crs) | 5446 | 5009 | 5083 | |||||
Commenting on the results M G George Muthoot, Chairman stated, “The woes of the economy continue to impact us. However, we could achieve 21% increase in profit after tax at Rs.187crs for the third quarter as against last year. Our sincere appreciation to our employees for their dedication, commitment and hardwork.”
Speaking on the occasion George Alexander Muthoot, Managing Director said, “Fall in interest cost as well as better control on expenditure and lower provisions has enabled us to show a better performance this quarter. Since gold loans are of short duration and consequent to higher level of demand being absent, incremental growth in portfolio is muted. However, we are seeing good demand for the new customer friendly lifestyle schemes launched. To meet unforeseen contingencies and as a matter of higher level of investor comfort, we have increased the standard asset provision again from 0.50% to 0.52%, thus in excess of regulatory requirement of 0.25%”
Business Highlights:
| Particular | 9M FY 16 | 9M FY 15 | % Growth(YoY) |
| Branch Network | 4259 | 4256 | 0.07% |
| Gold Loan Outstanding (Rs. in Cr) | 24941 | 22012 | 13% |
| Credit Losses (Rs. In Cr) | 7.16 | 12.32 | -42% |
| % of Credit Losses on Gross Retail Loan AUM | 0.029% | 0.056% | -48% |
| Average Gold Loan per Branch (Rs. In Cr) | 5.86 | 5.17 | 13% |
| No. of Loan Accounts (in lakh) | 69 | 59 | 17% |
| Total Weight of Gold Jewellery pledged (in tonnes) | 145 | 123 | 18% |
| Average Loan Ticket Size | 36134 | 37440 | -3% |
| No. of employees | 23070 | 23226 |
-1% |