Muthoot Finance’s Q4 income goes up
The standalone net profit for the fiscal year increased by 23% to Rs 3,722 crore, up from Rs 3,018 crore in FY20. Muthoot Finance Ltd NSE 7.33% (MFIN) announced a 22% increase in standalone profit after tax to Rs 996 crore for the three months ended March 2021.
In the previous fiscal year, the firm had a standalone profit after tax of Rs 815 crore. The standalone net profit for the fiscal year increased by 23% to Rs 3,722 crore, up from Rs 3,018 crore in FY20.
“Everyone wanted to relaunch their business and needed immediate money, which is why the demand for gold loans soared,” stated the company’s Managing Director, George Alexander Muthoot.
The lender increased its asset under management (AUM) in the Muthoot Finance gold loan category by 27% in FY21, compared to a 22% increase the previous year.
As of the end of March 2021, gold loans under control were Rs 51,926.6 crore. Gold loan assets grew by Rs 2,304 crore in the fourth quarter of FY21.
In FY21, consolidated profit after tax climbed by 21% to Rs 3,819 crore, up from Rs 3,169 crore the previous year.
The group’s consolidated loan assets increased by 24% to Rs 58,280 crore, up from Rs 46,871 crore in FY 20.
Total income climbed by 18% to Rs 2,828 crore in the reporting period, up from Rs 2,403 crore the previous quarter.
Its gross NPA or Stage-3 assets as a percentage of gross loan assets fell to 0.88% from 2.16%. The expected credit losses (ECL) provision was 1.19% of gross loan assets notices as in the March 2021 end.
The capital adequacy ratio rose from 25.47% to 27.44%. Muthoot Finance stated that the first 15 days of April were good for business, but that demand dropped in May when branches closed. Muthoot Finance anticipates a 15% increase in AUM in fiscal 2021-22.
“We often offer a 15% projection, but in the previous three years, we have been able to accomplish (increase) more than that.”
Muthoot Homefin (India) Ltd (MHIL), MFIN’s home financing business, reported a drop in net profit to Rs 13 crore in FY21, down from Rs 32 crore the previous year.
As of March 31, 2021, its Stage-3 assets as a percentage of gross loan assets were 4%, and its Stage-3 ECL provisions were 2.78%.
Belstar Microfinance’s earnings after tax were Rs 47 crore in FY21, down from Rs 99 crore the previous year.