Muthoot Finance Q4 Results: Pcrofit jumps 22% YoY to Rs 1,444 crore; AUM grows 37% on gold demand
India's largest gold loan company
Muthoot Finance
reported a 22% year-on-year rise in fourth quarter consolidated net profit at Rs 1444 crore as compared with Rs 1182 crore in the year ago period, backed by robust business expansion.
The Karala-headquartered group grew its consolidated assets under management 37% year-on-year to Rs 1.22 lakh crore.
The annual net profit for the group rose 20% at Rs 5352 crore against Rs 4468 crore in the year ago period.
On a standalone basis, Muthoot's net profit stood at Rs 1479 crore for the quarter under review, up 41% over Rs 1050 crore in the year ago period. Standalone AUM grew 41% year-on-year to Rs 1.06 lakh crore. All the subsidiaries taken together booked a Rs 35 crore net loss.
'The rising gold prices have attracted customers to monetise their gold, which has resulted in rising AUM for us. Customers have seen that getting personal loans has become difficult, so they have monetised their household gold," managing director
George Alexander Muthoot
told ET.
"For customers, it has been less gold and more money. We have achieved the highest ever gold loan advance to new customers of Rs 21,888 crore in FY25," he said.
The company declared its highest ever dividend of 260% on equity share of face value of Rs10 each, which translates into Rs 26 per equity share.
Its micro loan subsidiary, Belstar MIcrofinance, has seen a 20% squeeze in AUM to Rs 7980 crore at the end of March from Rs 10023 crore a year back, mirroring the industry trend of slower disbursement as the sector is going through a rough patch facing high asset quality stress. This led to a fall in annual net profit at Rs 46 crore from Rs 340 crore earlier.
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