Muthoot Finance skids 5% on flattish rise in Q3 profit, broader market selloff

NEW DELHI – Shares of Muthoot Finance declined in line with a broad market selloff on Monday, with the stock shedding 5.2 per cent after the Murugappa Group's NBFC reported a mere 4 per cent rise in its consolidated net profit at Rs 1,043.60 crore in the quarter ended December 2021.

The company's net profit stood at Rs 1,006.60 crore in the corresponding quarter a year ago.

The scrip dropped to a low of Rs 1,350.10 as against Rs 1,424.15 at the previous close on the National Stock Exchange.

Total income during October-December 2021-22 rose by 5 per cent to Rs 3,168.10 crore, as against Rs 3,016.40 crore in the same period of 2020-21, Muthoot Finance said in a regulatory filing.

Interest income during the quarter was up by 5 per cent from a year ago at Rs 3,086.70 crore.

India's largest gold financing company, by loan portfolio, said rural India accounts for about 65 per cent of total gold stock in the country, and the large portion of the rural population had limited access to credit, PTI reported.

The gross loan assets under management as of December 31, 2021, stood at Rs 54,687.60 crore. Of this, the gold loans under management were worth Rs 54,214.90 crore. The remaining Rs 472.70 crore was comprised of other loans.

The consolidated results of the Muthoot group include financial results of subsidiaries -- Muthoot Homefin (India), Belstar Microfinance, Muthoot Insurance Brokers, Muthoot Asset Management Pvt Ltd, Muthoot Trustee Pvt Ltd, Muthoot Money and Asia Asset Finance PLC, Sri Lanka.