Wednesday, 26 August 2020

Consolidated Loan Assets Under Management increased by

Consolidated Loan Assets Under Management increased by
16% YoY at Rs.46,501crs

Consolidated Profit after Tax increased by 52% YoY at Rs.858crs
Standalone Loan Assets Under Management increased by 15% YoY at Rs.41,296 crs for Q1 FY21

Standalone Profit after tax increased by 59% YoY at Rs.841crs for Q1 FY21

Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets under management achieved a YoY increase of 16% at Rs.46,501crs as at Q1 FY21 as against last year of Rs.40,228crs. During the quarter, Consolidated Loan Assets under management decreased by Rs.370crs. Consolidated Profit after tax achieved a YOY increase of 52% of Rs.858 crs as against last year of Rs.563crs.


Q1 FY21
Q4 FY20
QoQ %
Q1 FY20
YoY %
FY20
Group Branch Network
5,330
5,330
0%
5,092
5%
5,330
Consolidated Gross Loan Assets of the Group (Rs. In crores)
46,501
46,871
-1%
40,228
16%
46,871
Consolidated Profit of the Group (Rs. In crores)
858
836
3%
563
52%
3,169
Contribution in the Consolidated Gross Loan Assets of the Group
Muthoot Finance Ltd
40,906
41,216
-1%
35,406
16%
41,216
Subsidiaries
5,595
5,655
-1%
4,822
16%
5,655
Contribution in the Consolidated Profit of the Group
Muthoot Finance Ltd
834
809
3%
522
60%
2,993
Subsidiaries
23
27
-15%
41
-44%
176

Standalone Results of Muthoot Finance Ltd and its subsidiaries

Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 59%, at Rs.841crs for Q1FY21 as against Rs.530crs for Q1 FY20.  Loan Assets stood at Rs.41,296crs compared to Rs.35,816crs previous year, Y-o-Y growth of 15%. During Q1 FY21, Loan Assets decreased by Rs.315crs on account of closure of branches during the month of April 2020 due to pan India lockdown announced by Govt. Of India in the wake of Covid-19 pandemic.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan portfolio decreased to Rs.1,979 crs as against previous year of Rs.1,988crs, a YoY decrease of 0.40%. During Q1 FY21, loan portfolio increased by Rs.2crs. Total revenue for Q1 FY21 stood at Rs.59crs as against Rs.62crs in the previous year. It achieved a profit after tax of Rs.0.41crs in Q1 FY21 as against Rs.6crs in the previous year. Its Stage III Asset on Gross Loan Asset % as on June 30, 2020 stood at 1.70%. Company also made a Covid ECL provision of Rs.13crs additionally.
M/s. Belstar Microfinance Limited (BML), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs.2,575crs as against last year of Rs. 1,939crs, a YoY increase of 33%. During Q1 FY21, loan portfolio decreased by Rs.56crs. It achieved a profit after tax of Rs. 15crs in Q1 FY21 as against Rs. 23crs previous year. Its Stage III Asset on Gross Loan Asset % as on June 30, 2020 stood at 1.11%. Company also made a Covid ECL provision of Rs.6.83crs additionally.
Muthoot Insurance Brokers Pvt Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs. 44crs in Q1 FY21 as against Rs. 61crs in the previous year. It generated a Profit after Tax of Rs. 4crs in Q1 FY21 as against Rs. 3crs in the previous year.

The Sri Lankan subsidiary- Asia Asset Finance PLC(AAF) where Muthoot Finance holds 72.92% stake, increased its loan portfolio to LKR 1,348crs as against LKR 1,290crs last year, a YoY increase of 4%. During Q1 FY21, loan portfolio decreased by LKR 36crs.Total revenue for Q1 FY21 stood at LKR 70crs as against previous year total revenue of LKR 80crs.It incurred a loss of LKR 2crs in Q1FY21 as against previous year profit after tax of LKR 3crs.

Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. Recently, Company has started extending loans for Commercial Vehicles and Equipments. Its loan portfolio stood at Rs.497 crs as on June 30 ,2020. During Q1 FY21, loan portfolio decreased by Rs.12crs. Total revenue for Q1 FY21 stood at Rs.20 crs. Company also made a Covid ECL provision of Rs.12.19crs additionally.

Management Quote

Commenting on the results M G George Muthoot, Chairman stated, “At a time when pandemic has disrupted business activities across the globe, we with the support of our employees, customers and lenders have been able to continue excellence in our performance.  Company could achieve a 59% YoY increase in profit after tax of Rs.841crs for the quarter. Our branches were completely shut during the month of April due to nationwide lockdown. To ensure business continuity we upscaled our digital platforms. We recorded four-fold jump in digital loan disbursals since then. To encourage digital usage, we are incentivizing our customers with a cashback scheme to service interest payments through our online platforms. With businesses resuming, we have witnessed surge in gold loans as it is the most convenient form of availing working capital for small business and traders to kickstart their businesses.”

Speaking on the occasion George Alexander Muthoot, Managing Director said, “Our disbursements during the quarter was lower on account of closure of branches in the month of April 2020 due to nationwide lockdown. Once the branches opened, we saw higher level of repayments than disbursements, probably, on account of restrictions in movement of people. However, we witnessed a significant increase in disbursements since June 2020 which continues in July and August 2020. As initially guided, we are looking forward to achieve a 15% growth in gold loan portfolio for FY 21. Company also maintained a liquidity buffer of Rs.8,477crs as cash, bank and investments in liquid funds as on June 30 ,2020. Non-gold loan portfolio in subsidiaries constituted about 12% of consolidated loan portfolio. Collections in non-gold loan portfolio have significantly improved month on month. Additional Covid ECL provisions to the extent of Rs.32crs were made for non-gold loan portfolio in the quarter.”

Financial Highlights (MFIN):


Q1 FY21
Q4 FY20
QoQ %
Q1 FY20
YoY %

(Rs.in Crs)
(Rs.in Crs)
Change
(Rs.in Crs)
Change
Total Income
          2,385
          2,403
-1%
          1,859
28%
Profit Before Tax
          1,125
          1,097
3%
             817
38%
Profit After Tax
             841
             815
3%
             530
59%
Earnings Per Share(Basic) Rs.
          20.96
          20.33
3%
          13.23
58%
Loan Assets
       41,296
       41,611
-1%
       35,816
15%
Branches
          4,573
          4,567
0%
         4,502
2%

Particular
Q1 FY21
Q4 FY20
Q1 FY20
Return on Average  Loan assets
8.11%
8.13%
6.05%
Return on Average Equity
28.16%
28.39%
21.70%
Book Value Per Share (Rs.)
306.99
288.43
243.02

Particular
Q1 FY21
Q4 FY20
Q1 FY20
Capital Adequacy Ratio
26.30
25.47
24.72
Share Capital & Reserves (Rs. in Crs)
12,316
11,572
9,743

Business Highlights (MFIN):
Particular
Q1 FY21
Q1 FY20
Growth (YoY)
Branch Network
4,573
4,502
2%
Gold Loan Outstanding (Rs. in Cr)
40,495
35,171
15%
Credit Losses (Rs. in Cr)
3
2
40%
% of Credit Losses on Gross Loan Asset Under Management
0.0069%
0.0068%
1%
Average Gold Loan per Branch (Rs. In Cr)
8.86
8.24
8%
No. of Loan Accounts (in lakh)
76
82
-7%
Total Weight of Gold Jewellery pledged (in tonnes)
165
176
-6%
Average Loan Ticket Size
53,426
42,705
25%
No. of employees
25,430
24,644
3%

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