Gold financing company Muthoot Finance Ltd (MFIN) has posted a 4 per cent rise in profit after tax at ₹894 crore in Q2 of FY21 against ₹858 crore in the corresponding period of the previous fiscal.
The consolidated PAT of the group during the period was ₹930 crore against ₹909 crore in the corresponding period of the previous fiscal.
The consolidated loan assets under management during the quarter increased by ₹5,785 crore. In terms of loan portfolio, the gold financing company registered a 25 per cent increase in net profit at ₹1,735 crore in FY21 H1 against ₹1,388 crore in FY20 HI. Loan assets stood at ₹47,016 crore as of September 30, 2020, against ₹35,731 crore as of September 30, 2019.
MG George Muthoot, Chairman, said the company could achieve highest-ever quarterly growth in gold loan portfolio of ₹5,739 crore during this quarter. “With this growth, we achieved a 32 per cent growth in loan assets reaching ₹47,016 crore. We also achieved a 25 per cent rise in PAT at ₹1,735 crore for the half-year ended September 30.”
George Alexander Muthoot, Managing Director, said: “The disbursements for the quarter were focussed on new customer additions, fresh loans to active and inactive customers, and top-up loans to existing customers. This was supported by adequate BTL and ATL activities as well as digital innovations. We disbursed fresh loans to 4.40 lakh new customers amounting to ₹3,653 crore and to 4.67 lakh inactive customers amounting to ₹3,460 crore. Our average gold loan outstanding per branch crossed ₹10 crore per branch for the first time.
The company has been able to raise funds through bank loans, NCDs and commercial paper issuances regularly. We also maintained a liquidity buffer of ₹7,946 crore as cash, bank and investments in liquid funds as on September 30. Subsidiaries followed a cautious approach towards lending, he added.
Muthoot Homefin Ltd, the wholly-owned subsidiary achieved a PAT of ₹5 crore and ₹6 crore in Q2 FY21 and H1 FY21 against ₹14 crore and ₹20 crore. Belstar Microfiance Ltd posted a PAT of ₹15 crore and ₹30 crore in Q2 FY21 and H1 FY21.
Muthoot Insurance Brokers Pvt Ltd generated a PAT of ₹9 crore and ₹13 crore in Q2 FY21 and H1 FY21. The Sri Lankan subsidiary, Asia Asset Finance, generated a profit after tax of LKR 2 crore and LKR 0.13 crore in Q2 FY21 and H1 FY21.