Muthoot Microfin Ltd, one of India's top small loan companies, reported strong growth in the fourth quarter, including robust credit expansion, rising margins, and declining credit costs.
According to the provisional unaudited numbers, Muthoot Microfin's Assets Under Management (AUM) expanded by 32% year-over-year, reaching Rs 12,194 crore as of March 31, compared to Rs 9,208 crore in the previous fiscal year.
The company's disbursement also surged by 32% YoY to Rs 10,662 crore during FY24, marking the highest ever disbursement in a single fiscal year.
Muthoot Microfin's collection efficiency improved significantly, standing at 98.4% for FY24, up 260 basis points from 95.8% in the previous fiscal year. Collection efficiency refers to the effectiveness of an organization's ability to collect the principal and interest payments from its borrowers.
The company raised funds amounting to Rs 9,242 crore through various instruments during the fiscal year and concluded a an External Commercial Borrowing (ECB) deal, raising USD 75 million (Rs 622 crores) from multiple international banks.
The company continued to expand its network, with the total branch count growing by 29% YoY to 1,508, enabling financial inclusion and empowering lives across the country. Muthoot Microfin entered Telangana and expanded its footprint in several states, including Uttarakhand and Himachal Pradesh.
Active customer count expanded by 21% YoY, reaching 33.5 lakh as of March 31, 2024, compared to 27.7 lakh customers in the previous fiscal year.
The company added 10.0 lakh new customers during the fiscal. It said its Mahila Mitra app's cumulative downloads have now reached 16.3 lakh customers. The app offers various financial services, including loan management and digital payments.
For the current year, said the company, key focus areas include AUM growth, asset quality, digital inclusion, customer retention, and geographic expansion.