Muthoot Finance Q1 net up 9% at Rs 563 cr

Muthoot Finance on Monday reported a rise of 9 per cent in consolidated net profit at Rs 563 crore for the quarter ended June 30, 2019. The company’s net profit in the year-ago period stood at Rs 518 crore.

Total income increased to Rs 2,067.67 crore during the quarter as against Rs 1,783.47 crore in the same period of the previous fiscal, the company said in a regulatory filing.

Consolidated loan assets under management (AUM) rose 18 per cent to Rs 40,228 crore during the latest June quarter, as against Rs 33,954 crore a year ago, a company statement said.

Consolidated results of the company include businesses from six subsidiaries, including Sri Lankan subsidiary Asia Asset Finance PLC (AAF).

During the quarter under review, the company declared dividend of Rs 12 per equity share which is 120 per cent of the face value with a total payout of Rs 580 crore for 2018-19, said Chairman M G George Muthoot.

Managing Director George Alexander said, “gold loans are of short duration of average 3-4 months. In Q1FY20, we disbursed on an average, loans of Rs 6,500 crore per month and made collections of Rs 6,000 crore per month which resulted in a net growth of Rs 1,500 crore for the quarter”.

“Because of such heavy cash inflows from collections, we do not face any liquidity issues. However, due to the uncertainty around NBFC sector there are challenges in getting fresh bank funding for meeting the growth requirements,” the MD said.

As on June 30, 2019, the company holds gold jewellery worth Rs 55,000 crore for a loan amount of Rs 35,200 crore i.e., security of 156 per cent of the loan amount, he added.

The company is pursuing alternative sources of funding through public issuance of retail NCDs, George Alexander further said.