Kochi, January 30, 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% |
Other Highlights:
13th Public Issue of Debentures
During the quarter, Company successfully completed 13th Public Issue of Debentures of a base issue size of Rs.250crs and a greenshoe option another Rs.250crs. The issue was oversubscribed.
The Muthoot Group featured on CNBC TV18 as an Excellent Workplace
The Muthoot Group has been selected as one of the top 30 best work places in the country by CNBC TV18 and Skill tree Knowledge consortium. Work Place Excellence is India’s first television series showcasing the journey towards creating and maintaining an Excellent Workplace.
The series on CNBC TV18 salutes and acknowledges organizations that apply unique methods to create highly engaged, motivated, productive and loyal employees who have sense of ownership and identity in the environment they work in.
The Muthoot Group announced Bhaichung Bhutia as official representative for its Hero ISL Fair Play Award
The Muthoot Group announced Bhaichung Bhutia, former Indian Football Captain as its Official Representative for its association with Hero Indian Super League (Hero ISL) to propagate Fair Play and values in football.
The Group also endorsed its continued association as the official Referee and Fair Play Sponsor of Hero Indian Super League for the second consecutive year.
The Muthoot Group has also been associated with the Indian Premier League (Delhi Daredevils) and Cochin International Half Marathon in the recent past.
Our CSR Initiatives:
A) Human Elephant Conflict Mitigation n Association with WWF
Pressures of development and urbanization have led to fragmentation of natural habitats of Elephants across the country. This leads to straying away of elephants in the areas of human settlement, resulting in damage to human life & property and injury & death of elephants. We have tied-up with WWF India to mitigate this increasing human elephant conflict in 6 priority regions — Assam, Arunachal Pradesh, West Bengal, Tamil Nadu, Kerala, Uttarakhand. Solar fences are put up in areas of conflict. Orientation camps and awareness meetings for anti-depredation squads are conducted Search lights and early warning motion sensor alarms are also provided to forest wardens.
B) Muthoot M. George Excellence Award to 10th Standard Topers of Government Schools in Andhra Pradesh, Telangana, Karnataka and Kerala.
1800 schools in these states are covered under this program. Topers of these schools are given cash award and a certificate signed by Government School authorities and Chairman Muthoot M. George Foundation. Majority of these children are coming from low income group or lower middle class families. This program is implemented with a clear vision to make progress in forming an equitable and sustainable society by uplifting the younger generation.
C) Burn Care Centre at General Hospital, Ernakulam.
Although this was one of the critical care center of the hospital, it was in a dilapidated condition. Muthoot Finance, as part of its CSR initiative renovated the center. The Management of the hospital has appreciated this humanitarian gesture and a number of emergency cases are treated at this centre. The renovated care centre was opened to the public in the presence of District Collector, Local MLA and other dignitaries.
Corporate Comm India(CCI Newswire)
