Kochi, June 01, 2016: Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 61%, at Rs.265crs for the quarter ended March 2016 as against Rs.165crs last year. Net Profit for FY16 increased by 21% at Rs.810crs as against last year of Rs.671crs. Retail loans registered an increase of 4% of Rs.970crs during the year.
Company acquired 13.93% of equity share capital of M/s. Belstar Investment and Finance Private Limited (BIFPL) in May 2016 and has entered into binding agreement to acquire another 5.57% cumulatively 19.50%. M/s. Belstar is an NBFC engaged in the business of micro finance based out Chennai. It has 76 branches spread over five states which include Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra and Pondicherry and micro finance loan portfolio of Rs.264Crs as on March 31, 2016. Company is also planning to acquire additional 11.14% subject to regulatory approvals in this regard. Further, Company has entered into binding term sheet to infuse Rs.40crs. Consequent to the completion of above transaction; Company will be holding 57% of equity share capital of M/s Belstar thereby making it a subsidiary.
Subsequent to receiving regulatory approvals, Company invested Rs.44.91crs in Muthoot Homefin (India) Ltd acquiring 79% of share capital making it a subsidiary. It started its operations primarily in Kerala and Maharashtra. It is primarily focusing on affordable housing segment. As on March 31, 2016, it has a loan portfolio of Rs.30crs.
Board has also decided to submit an application to SEBI seeking its approval to act as a sponsor of a Mutual Fund.
Company is awaiting regulatory clearance on 100% acquisition of M/s.Muthoot Insurance Brokers Pvt. Ltd, an IRDA registered Insurance Direct Broker.
Further, the company increased its shareholding in Asia Asset Finance Plc, our Sri Lankan subsidiary from 51% to 59.70% during the year. AAF has made considerable progress in its business. This will be the first complete financial year after becoming subsidiary of Muthoot Finance. The synergy created is already depicted in its financial results for FY 16. The interest income of the company has increased by 49% at LKR 1.2 Billion, which has contributed to the overall improvement of its profitability by 73% reaching LKR 175Million. Its asset base grew by 52% reaching the LKR 8.1 Billion. The introduction of Gold Loans and the expansion of Micro Finance portfolio have been the key contributors to this year’s growth.
Retail Loan Assets Under Management at Rs.24379crs as at 31st March 2016
Corporate Comm India (CCI Newswire)
