Muthoot Finance reports 13% yoy drop in Q2 PAT to ₹867 cr. Details here
3 min read . Updated: 10 Nov 2022, 05:10 PM IST
Premium- Net interest income (NII) stood at ₹1,595 crore in Q2FY23 also declining by 13.8% from ₹1,851 crore in Q2 of FY22.
Muthoot Finance reported a net profit of ₹867.2 crore for the quarter ending September 30, 2022 (Q2FY23) period compared to a profit of ₹994.01 crore a year same quarter -- registering a decline of 12.76%. However, sequentially, the Q2 PAT climbed by 8.13% from ₹802 crore in June 2022 quarter. Net interest income (NII) stood at ₹1,595 crore in Q2FY23 also declining by 13.8% from ₹1,851 crore in Q2 of FY22.
In the second quarter, its total expenses stood at ₹1,342.14 crore compared to ₹1,493.56 crore in Q2FY22.
Further, in Q2FY23, the company garnered revenue of ₹2,497.73 crore compared to ₹2,830.43 crore in Q2 of the previous fiscal. In Q1FY23, the company posted a revenue of ₹2,503.86 crore.
For the first half of FY23 (H1), the company posted a net profit of ₹1,669.22 crore versus ₹1,965.16 crore in the corresponding period of the previous year. Meanwhile, revenue from operations came in at ₹5,001.59 crore against ₹5,544.22 crore in H1FY22.
On a consolidated basis, the company's loan assets under management grew 6% YoY to Rs. 64,356 crore in H1FY23 as against ₹60,919 crore last year. During the quarter, consolidated Loan Assets under management increased by ₹912 crores i.e. an increase of 1% QoQ. Consolidated Profit after tax for H1 FY23 stood at ₹1,727 crore as against ₹1,981 crore last year. Consolidated Profit after tax for Q2 FY23 increased by 9% QoQ at ₹902 crore as against ₹825 crore in Q1 FY23.
George Jacob Muthoot, Chairman stated, “ The contribution of our subsidiaries to the overall consolidated AUM remain at 11%. Our Microfinance Subsidiary, Belstar has registered a remarkable YoY Loan growth of 53% with AUM at ₹5138 crore. We are also witnessing improved collections across microfinance, vehicle finance, and home loans. We continue to monitor these sectors for emerging opportunities with an objective to drive a balanced business growth."
Further, George Alexander Muthoot, Managing Director said, " Our gold loan AUM stood at ₹56,501 crore registering a YOY growth of 3% and a slight QoQ growth. The standalone profit after tax increased by 8% QoQ for Q2 FY23 at ₹867 crore. Though we were able to migrate teaser loans to higher rates, full impact transformation will take few more quarters. Further despite the rising interest rate scenario, we were able to maintain our borrowing cost at 7.98% for Q2FY23.
Muthoot Finance opened 24 branches in Q2 FY23.
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Going forward, the MD added "in the coming quarters, we expect the borrowing cost to remain in that range mainly due to the positive impact on account of retirement of ECB amounting to USD450million in October 2022 which carried a high cost. We expect that our improved focus on loan disbursements and recovery measures as well as borrowing cost will enable us to maintain NIM around 11-12%. We continue to invest in our various digital initiatives along with our Gold loan@home service. We will continue to work on strengthening our growth strategy with focus on branch expansion and digital strategy."
On BSE, Muthoot Finance shares closed at ₹1,105.35 apiece lower by 1.18%. The stock has an intraday high and low of ₹1,133.30 apiece and ₹1,097.55 apiece earlier in trading hours.
Muthoot Finance has a market cap of ₹44,372.76 crore.
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