Muthoot Finance stock outperformed on Monday as the company posted its fiscal second-quarter result in which it reported a rise of 8.2% in profit after tax YOY to Rs1,001.96cr.
The revenues rose up to 3.26% on a sequential basis corresponding to Rs2,956 cr generated in the Jun-21 quarter. The company saw a rise of 8.19% to Rs3,052cr. in total revenues for the quarter ended.
Gold loan financiers Manappuram Finance and Muthoot Finance’s stock were in demand on Monday, consequently, they hit their respective record highs by 10 per cent on the BSE in Monday’s intra-day trade. The stock closed the market at Rs 1660.40 apiece, up 8. 52% from its previous day’s close.
On Tuesday, At around 1345 hours IST, the shares of Muthoot Finance were trading at Rs 1630.90, down almost by 2% from Monday’s close.
Consolidated net profit settled at Rs 1,003 crore in the reporting quarter compared to Rs 931 crore in the prior-year period, as performance on gold loans improved. The stock exceeded its previous high of Rs 1,638.50 on August 4, 2021.
On a sequential basis, the net profit rose 2.46% compared to the first-quarter profits of Rs 977.88cr.
The company’s total income came in at Rs 3,065 crore, up 9 per cent from Rs 2,824 crore during the second quarter of 2020-21. The gross loan assets of the company grew by 17 per cent to Rs 60,919 crore during the quarter as against Rs 52,286 crore in the year-ago period.
The company’s gold loan division saw a rise in net profit by 11 per cent, at Rs 994 crore for the reporting quarter as against Rs 894 crore reported in the same duration last year. Gold loan assets also rose to Rs 55,147 crore as compared to Rs 47,016 crore in the previous year, up 17 per cent. During the quarter, gold loan assets rose by Rs 2,613 crore, up 5 per cent over the previous year quarter.
George Jacob Muthoot, Chairman, Muthoot Group said, “As the second wave of the pandemic has ebbed and the economy further unlocks, corporate India has emerged stronger and better. We were able to maintain growth momentum during the quarter with all of our branches now open for business. Our consolidated loan AUM stood at Rs.60,919 crores as of the end of September 2021, clocking a growth of 5% QoQ and a growth of 17% YoY despite a challenging business environment. Consolidated Profit after tax stood at Rs.1,981 crores for the half-year ended September 2021, registering a growth of 11% YoY. The contribution of our subsidiaries to the overall consolidated AUM stands steady at 10%. As a responsible NBFC, we have been consistently working towards an overall growth strategy focusing on governance, performance and ESG framework.”
George Alexander Muthoot, Managing Director, Muthoot Finance said, “The demand environment remains strong and as we enter the festive season we remain optimistic about growth momentum in gold loan over the second half of FY22. We are optimistic about growing our gold loan book further and maintaining 15% growth guidance for FY22. We are witnessing improved collections across Microfinance, vehicle finance and home loans. In the last quarter, we had consciously decided to go slow on the non-gold lending business, we continue to remain conscious and monitor the space for emerging opportunities. We will continue to follow the strategy of balanced growth while maintaining overall asset quality.”