Muthoot Finance invites application for monthly financial

Muthoot Finance invites application for monthly financial
support to Artists of Traditional art forms

 

Muthoot Finance Ltd, India's largest gold loan company is launching “Muthoot Snehasanmanam 2021” in Chennai. Muthoot Snehsanmanam is a CSR initiative of Muthoot finance Ltd introduced for supporting Senior Artists and Performers who are unable to continue performing in the respective field because of the age factor, illness and also who are struggling financially to take their life forward.  Artists and performers who have contributed immensely in their respective art forms or widows of such artists can apply for this financial support.

 

The financial assistance under this project will be given to the artists of the following arts - Classical dance, Miruthangam artists, Violin Artists, Flute Artists, Veena Artists, Parai Artists, Folk Artists, Tabla Artists, Nadhaswaram Artists, Mathalam Artists, Harmonium Artists, Ghatam Artists, Bhagavata Mela / Koothu Artists, stage artists and artists of various traditional art forms. The beneficiaries will be shortlisted by the CSR committee of the Company

Click here to watch Muthoot Media Meet:

Muthoot Finance launch Snehasanmanam Project | Muthoot Finance Limited - YouTube

 

The artists from Chennai and around Chennai can apply for this financial assistance. The application should be submitted with the below documents on or before 25^th August 2021, incomplete applications will be rejected.

 

      Self request

      Recommendation from two popular artists in the similar art forms

      Awards and appreciations if any

      Photographs of performing art forms and 

      Newspaper coverage if received

      Income certificate below Rs. 1,00,000/-

 

The first edition of Snehasanmanam was launched in Kerala on January, 2015.  44 beneficiaries were being honoured under Muthoot Snehasanmanam Project. These beneficiaries were selected from applications received from artists of various traditional art forms or their widows.  The initiative aims to help the upcoming generation of artist and writers who could get inspired and learn from the work of these professionals. Perhaps it will also help the young minds of today in learning from their experiences and carry forward their work in their respective fields.  

 

The assistance is given on a monthly basis.  The first installment of the pension will be distributed during a common event and after that the selected beneficiaries will be getting the amount from their nearest Muthoot Finance branch.  

 

Mr. George Alexander Muthoot, Managing Director, Muthoot Finance Ltd said “It has been our constant endeavour to make significant contributions towards an equitable and sustainable society. Through this initiative our prime objective is to recognise, respect and honor this intelligentsia who inspired and ignited new wave of thoughts and creative literary work which not only gave the society new ideas and mindset but also inspired many. We will remain duly committed to our obligations to our society and will ensure that our efforts towards it remain constant and enduring in the future too”

The applications should reach the below address on or before 25^th August 2021 along with necessary documents mentioned;

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:

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%