Kochi, February 13, 2017/Team Estrade//– Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 56%, at Rs. 291crs for the quarter ended December 31, 2016 as against Rs. 187crs last year. In the nine months its profit after tax stood at Rs.858crs crossing its previous full year profit after tax of Rs.810crs. Retail loans registered an increase of 11% (Rs. 2583crs) during the nine months of FY 17 as against 7% (Rs.1583crs) during same period last year. Retail Loan AUM stood at Rs. 26962 crs at the end of December 31, 2016.
Company increased its stake in equity share capital of M/s. Belstar Investment and Finance Private Limited (BIFPL) from 57.16% to 64.60% during the quarter. During the nine months period, loan portfolio of Belstar grew by 72% at Rs. 454 crs. It achieved a profit after tax of Rs.7 crs during the nine months period as against last full year profit after tax of Rs.6crs. Its Gross and Net NPA stood at 0.19% and 0.02% respectively as on December 31, 2016.
The housing finance subsidiary – Muthoot Homefin (India) Ltd during the nine months period of current year increased its loan portfolio by Rs. 173 crs at Rs. 204crs. Total revenue for the 9M FY17 stood at Rs.11crs as against last full year total revenue of Rs.2crs. It achieved a profit after tax of Rs. 73lakhs during the 9M FY17 as against last full year profit after tax of Rs.1.4 lakhs.
Muthoot Insurance Brokers Pvt Limited, the wholly owned subsidiary and a IRDA registered Direct Broker in insurance products has generated a premium collection amounting to Rs. 44crs in 9M FY17 as against Rs. 49 crs in last full year.
Asia Asset Finance Plc, our Sri Lankan subsidiary has increased its loan portfolio by 25% at LKR 856crs during the nine months period of current year. Total revenue for the 9M FY17 stood at LKR 155 crs as against last full year total revenue of LKR 139crs. It generated a profit after tax of LKR 19 crs during the nine months period as against last full year profit after tax of LKR 18 crs.
Commenting on the results M G George Muthoot, Chairman stated, “We are glad to announce a 56% growth in profit after tax at Rs.291crs during the quarter. Though disbursements got affected post demonetization process announced by the govt. , we could limit its impact since our digital platforms were ready to manage online disbursements and repayments. We are expecting normalcy coming back during the fourth quarter as cash availability has significantly increased. ”
Speaking on the occasion George Alexander Muthoot, Managing Director said, “Our subsidiaries have done extremely well during the last nine months. Housing finance company has stabilized its operations and started scaling up its business. The micro finance company could increase its loan portfolio by 72%. The NBFC in Sri Lanka has increased its loan portfolio by 25%. Premium collections in the Insurance Broking subsidiary have been stable without having any impact on account of demonetization. We are expecting these businesses to scale up its contributions to group revenue in the quarters to come. ”
Financial Highlights:
| Q3FY17 (Rs.in Crs) | Q3FY16 (Rs.in Crs) | YoY Qtly change | 9MFY17 (Rs.in Crs) | 9MFY16 (Rs.in Crs) | YoY 9M change | Q2FY17 (Rs.in Crs) | Q1FY17 (Rs.in Crs.) | FY16 (Rs.in Crs) | |
| Total Income | 1346 | 1141 | 18% | 4033 | 3424 | 18% | 1386 | 1301 | 4875 |
| Profit Before Tax | 446 | 290 | 54% | 1332 | 842 | 58% | 462 | 424 | 1317 |
| Profit After Tax | 291 | 187 | 56% | 858 | 544 | 58% | 297 | 270 | 810 |
| Earnings Per Share(Basic) | 7.29 | 4.69 | 55% | 21.5 | 13.68 | 57% | 7.44 | 6.77 | 20.34 |
| Retail Loan AUM | 26962 | 24991 | 8% | 26962 | 24991 | 8% | 27456 | 25860 | 24379 |
| Branches | 4308 | 4259 | 1% | 4308 | 4259 | 1% | 4327 | 4294 | 4275 |
| Q3FY17 | Q3FY16 | 9MFY17 | 9M FY16 | Q2FY17 | Q1FY17 | FY16 | |
| Return on Average Retail Loans | 4.28% | 2.99% | 4.37% | 2.97% | 4.45% | 4.30% | 3.32% |
| Return on Average Equity | 18.37% | 13.95% | 18.91% | 13.79% | 19.65% | 18.78% | 15.13% |
| Book Value Per Share (Rs. ) | 162.15 | 136.70 | 162.15 | 136.70 | 154.97 | 147.51 | 140.72 |
| Q3FY17 | Q3FY16 | Q2FY17 | Q1FY17 | FY16 | |
| Capital Adequacy Ratio | 24.66% | 23.37% | 23.67% | 24.27% | 24.48% |
| Share Capital & Reserves (Rs. in Crs) | 6482 | 5446 | 6189 | 5892 | 5619 |
Business Highlights:
| Particular | 9M FY 17 | 9M FY 16 | Growth (YoY) |
| Branch Network | 4308 | 4259 | 1% |
| Gold Loan Outstanding (Rs Cr) | 26902 | 24941 | 8% |
| Credit Losses (Rs. Cr) | 6.23 | 7.16 | -13% |
| % of Credit Losses on Gross Retail Loan AUM | 0.023% | 0.029% | -20% |
| Average Gold Loan per Branch(Rs. Cr) | 6.24 | 5.86 | 6% |
| No. of Loan Accounts (in lakh) | 73 | 69 | 6% |
| Total Weight of Gold Jewellery pledged (in tonnes) | 147 | 145 | 1% |
| Average Loan Ticket Size | 36753 | 36134 | 2% |
| No. of employees | 24150 | 23070 | 5% |
Other Highlights:
e-KYC
Company has started using e-KYC to comply with the KYC norms. It is a customer friendly and convenient digital KYC process based on Aadhaar with direct UIDAI link. This paperless and highly secure process enables faster loan processing and ensures 100% integrity in KYC verification. This has been introduced for the first time by a Gold Loan NBFC, with more than 50% adoption rate in the first roll out. Introducing e-Sign by March 2017.
Gold Cash Card (GCC) – DCB VISA
This is a unique concept of cashless loan disbursement introduced for the first time by a Gold Loan NBFC. Loan amount is loaded into a VISA card and given to the customer to be used as per their needs at any merchant outlets , for online/e-commerce shopping and at any VISA enabled PoS. It can also be used to draw cash from ATMs. Bank account is not required for the card issuance.
Direct Credit Facility
Electronic transfer of loan proceeds direct to the Customer’s bank account through NEFT/RTGS/IMPS mode of bank transfer. Facilitates instant credit to bank account.
PoS Terminals
Card swiping machines installed at branches to facilitate cashless collection of interest. Accepts debit cards issued by banks and the swiping charges for interest payments is waived off.
ONLINE GOLD LOAN
Muthoot Online
Our online transaction platform – WebPay is available for customers to carry out all their Gold Loan related transactions from the comfort of their Laptop, Desktop, Phone, Tablet. This facility is available on our website online.muthootfinance.com
Mobile App
We have also developed a new Mobile Application called iMuthoot which allows customers to transact through their smartphones. This is a major step by Muthoot Finance towards a branch-less banking ecosystem for our customers. iMuthoot is available on Google Play for Android Phones & Apple Store for iPhones respectively. Existing customers can view their loan statement and balance before making transactions including Interest and Principal Repayments, Withdrawals, Top-up and Renewal of Loans from the convenience of their smartphones. New Customers can view our latest loan schemes, calculate the loan eligibility, locate branches and fix an appointments with a nearest branch and Apply for a Gold loan – all this from their smart phones. It is available in six languages to choose from.
Muthoot Finance Q3FY17 results Announced
