Consolidated Loan Assets Under Management increased by

Consolidated Loan Assets Under Management increased by 25% YoY at Rs.58,135crs

Consolidated Profit after Tax increased by 14% YoY at Rs.979crs

Standalone Loan Assets Under Management increased by 27% YoY at Rs.52,614crs

Standalone Profit after tax increased by 16% YoY at Rs.971crs

Management Quote

Commenting on the results Mr. George Jacob Muthoot, Chairman stated, “As second wave of pandemic hit across the country in the first quarter, amidst selective lock downs at state and local level , we took all efforts to open our branches and maintain our services to the extent possible. Thanks to all our 25000+ workforce, we were able to maintain our Consolidated Loan AUM on QoQ basis inspite of the tough environment. However, compared to last year, Loan assets grew by 25% at Rs.58,135crs. Profit after tax for the quarter increased by 14% at Rs.979crs compared to last year.”

Speaking on the occasion Mr. George Alexander Muthoot, Managing Director said, “We consciously decided to go slow in terms of non-gold lending business on account of continued uncertainty and emerging uncertain credit behavior. We are redrawing our strategies in terms of non-gold lending business and we are confident to emerge stronger as environment improves.  On Gold Loan front, we are targeting 15% growth in the remaining 3 quarters.”

Consolidated Results of Muthoot Finance Ltd

Muthoot Finance Ltd Consolidated Loan Assets under management achieved a YoY increase of 25% at Rs. 58,135crs as at Q1 FY22 as against last year of Rs. 46,501crs. During the quarter, Consolidated Loan Assets under management decreased by Rs. 145crs. Consolidated Profit after tax achieved a YOY increase of 14% of Rs. 979crs as against last year of Rs. 858crs. 

	Q1 FY22	Q4 FY21	QoQ %	Q1 FY21	YoY %	FY21
Group Branch Network	5,443	5,451	(0.15)%	5,330	2%	5,451
Consolidated Gross Loan Assets of the Group (Rs. In crores)	58,135	58,280	(0.25)%	46,501	25%	58,280
Consolidated Profit of the Group (Rs. In crores)	979	1,024	(4)%	858	14%	3,819
Contribution in the Consolidated Gross Loan Assets of the Group
Muthoot Finance Ltd	52,493	52,394	(0.19)%	40,906	28%	52,394
Subsidiaries	5,642	5,886	(4)%	5,595	1%	5,886
Contribution in the Consolidated Profit of the Group
Muthoot Finance Ltd	969	991	(2)%	835	16%	3,700
Subsidiaries	10	33	(70)%	23	(57)%	119

 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 16%, at Rs. 971crs for Q1FY22 as against Rs.841crs for Q1 FY21.  Loan Assets stood at Rs. 52,614crs compared to Rs. 41,296crs previous year, Y-o-Y growth of 27%. During the quarter, gold loan assets increased by Rs. 142crs.

 Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, has a loan portfolio of Rs. 1705crs as against previous year of Rs. 1979crs. During Q1 FY22, loan portfolio increased by approximately  by Rs. 1crs. Total revenue for Q1 FY22 stood at Rs.46crs as against Rs. 59crs in the previous year. It achieved a profit after tax of Rs.0.48crs in Q1 FY22 as against Rs.0.41crs in the previous year. Its Stage III Asset on Gross Loan Asset as on June 30, 2021 stood at 5.94% and net of Stage 3 ECL provisions stood at 4.12%.

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.3,072crs as against last year of Rs. 2,575crs, a YoY increase of  19%. It achieved a profit after tax of Rs.2crs in Q1 FY22 as against previous year profit after tax of Rs.15crs. Its Stage III Asset on Gross Loan Asset % as on June 30, 2021 stood at  3.67% and net of Stage 3 ECL provisions stood at 1.25%.

 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.61crs in Q1 FY22 as against Rs.44crs in the previous year. It generated a Profit after Tax of Rs.4.31crs in Q1 FY22 as against Rs. 4.16crs 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 1429crs as against LKR 1348crs last year, a YoY increase of 6%. During Q1 FY22, loan portfolio increased by LKR 29crs.Total revenue for Q1 FY22 stood at LKR 68crs as against previous year total revenue of LKR 70crs. It generated a Profit after Tax of LKR.0.97 crs in Q1 FY22 as against as against previous year loss of   LKR 1.69 crs , a YoY increase of  157%.

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 Cars, Two wheelers, Commercial Vehicles and Equipments. Recently, As on June 30,2021, its loan portfolio stood at Rs.333crs, as against last year of Rs.497crs. Total revenue for Q1 FY22 stood at Rs. 11 crs.  It incurred  a loss  of Rs 0.11crs in Q1 FY 22 as against previous year loss of  2.47crs. Its Stage III Asset on Gross Loan Asset % as on June 30, 2021 stood at  18.85% and net of Stage 3 ECL provisions stood at 14.28%.

  Financial Highlights (MFIN):

	Q1 FY22	Q4 FY21	QoQ %	Q1 FY21	YoY %
	(Rs.in Crs)	(Rs.in Crs)	Change	(Rs.in Crs)	Change
Total Income	2,715	2,828	(4)%	2,385	14%
Profit Before Tax	1,300	1,350	(4)%	1,125	16%
Profit After Tax	971	996	(3)%	841	16%
Earnings Per Share(Basic) Rs.	24.21	24.81	(2)%	20.96	16%
Loan Assets	52,614	52,622	(0.02)%	41,296	27%
Branches	4,625	4,632	(0.15)%	4,573	1%

 

Particular	Q1 FY22	Q4 FY21	Q1 FY21
Return on Average  Loan assets	7.38%	7.73%	8.10%
Return on Average Equity	25.37%	27.08%	28.16%
Book Value Per Share (Rs.)	383.33	379.70	306.99

 

Particular	Q1 FY22	Q4 FY21	Q1 FY21
Capital Adequacy Ratio	27.32	27.39	26.30
Share Capital & Reserves (Rs. in Crs)	15,384	15,239	12316

 Business Highlights (MFIN):

Particular	Q1 FY22	Q1 FY21	Growth (YoY)
Branch Network	4,625	4,573	1%
Gold Loan Outstanding (Rs. in Cr)	52,069	40,495	29%
Credit Losses (Rs. in Cr)	9	3	200%
% of Credit Losses on Gross Loan Asset Under Management	0.017%	0.007%	143%
Average Gold Loan per Branch (Rs. In Cr)	11.26	8.86	27%
No. of Loan Accounts (in lakh)	85	76	12%
Total Weight of Gold Jewellery pledged (in tonnes)	171	165	4%
Average Loan Ticket Size	61,080	53,426	14%
No. of employees	25,397	25,430	(0.13)%

 Subsidiaries:

UTI Mid Cap Fund: Benefit from the Market’s Potential

         UTI Mid Cap Fund: Benefit from the Market’s Potential Sweet Spot

In contrast to biological life cycle, companies do go through periods of growth and saturation. Mid cap companies capture a period in the typical business life cycle, wherein companies have successfully navigated the phase inherent to small companies, such as raising initial capital, managing early growth challenges, however, these companies are likely to sustain leadership, operate with significant moat, and they are not so large enough that their ability to fast grow is disparaging. Therefore, mid-cap companies can offer a sweet spot between fast-growing small businesses and well-established large companies.

Mid cap stocks fall in between large cap and small cap stocks and are typically determined based on the market capitalization of the companies. As defined by SEBI, 101^st to 250^th company by full market capitalization are mid cap stocks. A mid cap fund predominantly invests in mid cap stocks with a minimum of 65% of the fund’s corpus in equity & equity related instruments of mid cap companies.

The Funds investing in mid cap companies provide investor an opportunity to cover broader market capitalization helping in portfolio diversification and also an opportunity to take part in growth stories of medium sized businesses. However, investors should take cognizance of its inherent risks, as both risk and reward potential of mid cap funds are relatively higher than that of well-diversified growth funds.

UTI Mid Cap Fund is an open ended equity scheme investing predominantly in mid cap companies. The Fund’s strategy focuses on investing in companies with scalable business models and long growth runway, the fund is also open to investing in good companies whose business/s are going through transitory phase of weakness OR undergoing a transformational change. The Fund pursues pure bottom-up stock selection approach to pick businesses with healthy financials and potential for sustenance of margins over a period of time. The Fund is also a well-diversified portfolio with about 70 stock covering various sectors and industries.

The Fund’s inception was on April 7, 2004 and has an AUM of over Rs. 5,500 crores with over 3.60 lakhs of unit holder accounts as of May 31, 2021. The Fund is a true to label product, therefore would prefer to have an allocation in mid cap and small cap companies in the range of 85-90% in the portfolio at all point in time. The Fund has about 70% invested into mid cap companies, 16% into small cap companies and remaining in large cap companies as on May 31, 2021. The scheme’s top holding consists of Cholamandalam Investment and Financial Services Ltd., SRF Ltd., PI Industries Ltd., Jubilant Foodworks Ltd., Mphasis Ltd., Tube Investments of India Ltd., Astral Ltd., Bharat Forge Ltd., Crompton Greaves Consumer Electronics Ltd. and Federal Bank Ltd. which accounts for about 27% of the portfolio’s holdings.

The Fund with its diversified exposure aims to strike a balance between risk and reward by following a patient approach towards companies in the portfolio and with right mix of companies with Return on Capital Employed (RoCE) and Cash flow profile. This is likely to aid in mitigating sharp return divergence and volatility of the portfolio.

UTI’s rich experience in research and fund management, coupled with coverage of large cross section of companies in mid and small cap universe will help the Fund in picking quality stocks and also avoid the poor ones.

UTI Mid Cap Fund is suitable for investors looking for an investment in a portfolio predominantly investing in mid cap companies and looking to supplement their core equity portfolio with its underlying growth potential.

Shriram Life Insurance profit grows three times to

Shriram Life Insurance profit grows three times to 106 crores in FY 20-21

·         Claim settlement ratio crosses 95 %

·         AUM grows 30 % to Rs. 6,261 crores

Private Insurer, Shriram Life Insurance Company’s profit after tax has grown 3 times to Rs. 106 crores in FY 20-21. This growth is backed by technology adoption and an increase in the rural penetration in the country as the company continues to serve the community at large. Effective and consistent focus on fundamentals also yielded strong results with the AUM growing at 30% to Rs 6,261 crores.  Income from Investments has excelled more than double to cross 500 crores.

Even during these unprecedented times, Shriram Life Insurance was able to grow its gross premium by 23% crossing the milestone of 2,000 crores. This growth was supported by a 25% growth on total new business premium and 24% growth on retail renewals. The company continues to extend financial protection to customers residing even in the deepest rural locations within the heartlands of India with approximately 47% of its new business from the rural segment. Also, 54% of the company’s claims came in from the rural segment.

Mr. Casparus Kromhout, MD & CEO, Shriram Life Insurance said, “Shriram Life has been focused on serving the protection needs of the rural segment and lower income segments. These segments are most affected by the crisis due to the dual impact of the health emergency and loss of income. We remain committed in reaching our customer segment during this difficult time to ensure that financial protection is extended to more customers and that life cover continues for existing customers. The growth of 8% in number of policies sold underlines this commitment. Our complete focus has been on unhindered customer service especially for claims settlement.”

Retail focused HFC, Aptus Value Housing files

 Retail focused HFC, Aptus Value Housing files
 

for Rs. 3000 Cr IPO

 

Aptus Value Housing Finance, one of the largest housing finance companies in terms of asset under management having the largest branch network in South India has filed it’s papers with the regulator to raise approximately Rs.2,600 -3,000 cr as per market sources.

The fund raise comprises of a fresh issue of equity shares aggregating to 500 cr and an Offer for Sale of upto 64,590,695 equity shares by Promoter and Other Selling Shareholders.

Since the inception of the company in 2010 till date, the company has pristine asset quality with very low NPA and as of Dec 31, 2020 the companies AUM stood at Rs 3,790.93 cr of which 72.50% were loans to self-employed customers while the balance 27.50% accounted for salaried individuals.

As on Dec 31, 2020, the company had 1,844 personnel and a network of 181 branches catering to 56,430 active loan accounts across 75 districts in Tamil Nadu (including the Union Territory of Puducherry), Andhra Pradesh, Karnataka and Telangana and has a strong capital sponsorship by marquee investors i.e Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India.

AVHFIL, whose 60% customers are located in rural/semi urban regions offers home loans for purchase and self-construction of residential property, home improvement, extension loans, loan against property and business loans, primarily to first time home buyers belonging to the low and middle income groups The ticket sizes of its loans ranges between Rs 5-15L with tenures ranging between 8.5 to 12.5 years.

The asset quality focused financier in comparison to its peers, in FY20, not only had the highest ROA of 6.3% due to its optimal product mix   and cost control measures but also had one of the lowest cost to income ratio at 26.4% as compared with peers in the Industry.

After successfully growing its presence outside its home state, Tamil Nadu to other major markets in southern India, it is now intending to expand its branch network in large housing markets in the states of Maharashtra, Odisha and Chhattisgarh.

The company has stayed resilient and has seen consistent performance through the past and ongoing macro-economic challenges. As of Dec 31, 2020 it’s Net NPA stood at 0.57%, Capital Adequacy at 75.03% and Collection Efficiency at 99.20%.

The net proceeds from the issue will be utilized towards augmenting the company’s capital base and to meet future growth requirements.

Investment Bankers appointed for the Issue are ICICI Securities Ltd, Citigroup Global Markets India Pvt Ltd, Edelweiss Financial Services Ltd and Kotak Mahindra Capital Company Limited

Indian Housing Finance Market, particularly the affordable housing clocked a higher growth of 16%-18% (13% CAGR  of normal housing finance) between FY18-20 on account of rise in disposable income, healthy demand from smaller city markets, attractive interest rates on governments impetus on housing. As an asset class it has the lowest annual credit losses.

SBI Life Insurance registers New Business Premium

SBI Life Insurance registers New Business Premium of Rs. 20,624 crores
for the year ended on 31^st March, 2021  

SBI Life Insurance, one of the leading life insurers in the country registered a New Business Premium of Rs. 20,624 crores for the year ended on 31^st March, 2021 vis-a-vis Rs. 16,592 crores for the year ended March 31, 2020. Single premium has increased by 52% over the corresponding year.

 

Establishing a clear focus on protection, SBI Life’s protection new business premium stood at Rs. 2,459 crores for the year ended March 31, 2021 marking a year-on-year growth of 18%. Protection Individual new business premium registered a growth of 40% and stood at Rs. 742 crores for the year ended March 31, 2021. Individual New Business Premium stands at Rs. 12,499 crores with 11% growth over the corresponding year.

 

SBI Life’s profit after tax stands at Rs. 1,456 crores for the year ended March 31, 2021.

 

The company’s solvency ratio continues to remain robust at 2.15 as on March 31, 2021 as against the regulatory requirement of 1.50.

 

SBI Life’s AUM also continued to grow at 38% to Rs. 2,20,871 crores as on March 31, 2021 from Rs. 1,60,363 crores as on March 31, 2020, with the debt-equity mix of 73:27. 90% of the debt investments are in AAA and Sovereign instruments.

 

The company has a diversified distribution network of 2,25,381 trained insurance professionals and wide presence with 947 offices across the country, comprising of strong bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing firms, web aggregators and direct business.

 

Performance for the year ended March 31, 2021

 

·  New Business Premium at Rs. 20,624 crores, growth of 24% with private market share of 21.9%

·  Renewal Premium at Rs. 29,630 crores, growth of 23% with strong 13^th month persistency at 87.92% and 61^st month persistency at 61.63%

·  Gross written premium (GWP) crosses Rs. 500 billion mark

·  Private market leadership in Individual Rated Premium (IRP) with 22.6% market share

·  Assets under Management (AuM) grew by 38% to Rs. 2,20,871 crores

·  Operating cost efficiency further strengthen from 5.9% to 4.8%

·  New Business Margin increased by 170 bps to 20.4%

·  Value of New Business registered growth of 16% amounting to Rs. 2,334 crores

·  Indian Embedded Value (IEV) grew by 27% to Rs. 33,386 crores

·  Interim dividend of Rs.2.5 per share with a strong solvency ratio of 2.15