Record gold prices help Muthoot Finance post 17% growth in net income in Q4

For the full year, the Kochi-based company reported a 22 percent jump in net income at Rs 4,468 crore.
Record gold prices help Muthoot Finance post 17% growth in net income in Q4

MUMBAI: Record gold prices leading to higher loan sales and a good show by its subsidiaries boosted the consolidated earnings of the largest pureplay gold loan player Muthoot Finance, which saw a 17 percent growth in net income at Rs 1,182 crore for the March quarter over Rs 1,009 crore in the year ago period.

For the full year, the Kochi-based company reported a 22 percent jump in net income at Rs 4,468 crore. Total income rose 19 percent to Rs 3,418 crore for the quarter.

The loan book grew 25 percent to Rs 89,079 crore as of March as against Rs 71,497 crore last year. During the reporting quarter, consolidated loan assets rose by 8 percent. Of the total AUM, as much as Rs 75,327 crore is in the book of Muthoot Finance, up from Rs 62,950 crore a year ago and the rest Rs 13,752 crore from the subsidiaries, which grew from Rs 8,547 crore.

From the profit side, the parent Muthoot Finance reported Rs 1,050 crore, up 17 percent from Rs 900 crore in quarter, and Rs 4,029 crore for the year, up 16 percent, while the subsidiaries chipped in with Rs 132 crore of net income, up 21 percent for the quarter, and Rs 439 crore for the full year, up 117 percent from Rs 203 crore, the company said.

Group chairman George Jacob Muthoot said while consolidated loan book crossed Rs 89,000 crore, standalone loan assets crossed Rs 75,000 crore. The contribution of subsidiaries on loan assets increased to 15 percent from 12 percent last year, reflecting our strategic diversification efforts.

George Alexander Muthoot, the managing director, said the loan growth of 20 percent is more than the guidance of 15 percent in FY24. In Q4, the standalone loan book witnessed a high of Rs 75,827 crore, driven by robust growth in gold loan of Rs 3,657 crore. This also led to them achieving the highest ever gold loan advance to new customers of Rs 16,415 crore.

During FY24, gold loan assets increased by Rs 11,003 crore registering a growth of 18 percent.

The housing finance arm achieved disbursements of Rs 815 crore in FY24 as against Rs 223 crore in FY 23. The micro finance arm Belstar Microfinance also witnessed an upward trend, with increased loan 62 percent reaching Rs 10,023 crore and profit after tax by 161 percent at Rs 340 crore.

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