New Delhi, August 25, 2017: Muthoot Finance’s (Muthoot) Q1FY18 PAT jumped ~30% YoY to INR3.5bn, supported by: (i) funding cost benefit (down >150bps YoY and >50bps QoQ to 9.9%); and (ii) controlled opex—up mere ~2% YoY. However, growth continued to be modest—gold AUM up ~8% YoY and 2% QoQ to INR278bn—impacted by lower demand and sustained auctions (INR3.6bn). We believe better asset growth momentum is a critical driver of earnings growth. Non-gold businesses that currently contribute ~5% to earnings will be scaled-up to 9-10% by FY18. Given revenue tailwinds and controlled opex, we estimate Muthoot to post >18% earnings CAGR over FY17-19. Maintain ‘BUY’. Read more..
Corporate Comm India(CCI Newswire)
