Latest news with #MuthootMicrofin
Business Standard
3 days ago
- Business
- Business Standard
Crisil Ratings assigns 'A1+' rating to commercial paper of Muthoot Microfin
Muthoot Microfin (MML) said that Crisil Ratings has assigned its 'Crisil A1+' rating to the commercial paper of the company. The rating on the long-term bank loan facilities and non convertible debentures has been reaffirmed at 'Crisil A+/Stable'. Crisil Ratings stated that the ratings continue to factor in expectation of continued support from the parent, Muthoot Fincorp (MFL). It also takes into consideration MMLs adequate capital position and its diversified resource profile. These strengths are partially offset by geographical concentration in the loan portfolio, moderate asset quality and susceptibility of the microfinance sector to regulatory and legislative changes. MMLs portfolio quality has been affected in line with several issues faced by the sector over the last 3-4 quarters. However, overall asset quality (in terms of collections) has started showing some stability, particularly during the fourth quarter of fiscal 2025. Crisil Ratings believes that despite some early signs of improvement in collections, the companys ability to show substantial improvement in portfolio quality will be closely monitored. The company remained well-capitalised, as reflected by networth of Rs 2,632 crore and gearing of 3.0 times as on 31 March 2025 (Rs 2,804 crore and 3.0 times, respectively, as on 31 March 2024). Capital position of the company also benefits from its strong parentage, which enables it to raise funds in a timely manner. Muthoot Microfin (MML), a part of Muthoot Pappachan Group (MPG), provides microfinance loans to women. MML had AUM of Rs 12,356 crore and networth of Rs 2,632 crore as on 31 March 2025. Operations of the microfinance division are spread across Kerala, Tamil Nadu, Puducherry, Karnataka, Maharashtra, Gujarat, Haryana, Rajasthan, Uttarakhand, Madhya Pradesh, Uttar Pradesh, Odisha, West Bengal, Punjab, Chhattisgarh, Jharkhand, Bihar, Himachal Pradesh and Telangana. The scrip rose 0.83% to trade at Rs 127.4 on the BSE today.
Time of India
25-05-2025
- Business
- Time of India
Microfinance stress takes toll on FY25 profits
Representative image CHENNAI: Stress in the sector has left microfinance institutions bleeding. Listed MFIs have either reported a loss or a substantial decrease in their profits in the March quarter. This comes on the back of multiple factors including deterioration in asset quality, rising credit costs, borrower overleveraging and rising borrower overlaps that impacted the performance of microfinance companies during FY25. Muthoot Microfin posted a loss of Rs 401 crore in Q4 FY25 while Fusion Finance ((formerly Fusion Micro Finance) reported a loss of Rs 164 crore during the same period. Microfinance lender CreditAccess Grameen's net profit dropped by 88% to Rs 47 crore in Q4 FY25 against Rs 397 crore in the year-ago period. Satin Creditcare Network's standalone PAT in Q4 FY25 declined by 67% to Rs 41 crore from Rs 125 crore during the year-ago quarter. Mahendra Patil, founder and managing partner, MP Financial Advisory Services LLP said, the gross non-performing asset (GNPA) ratio for the sector surged to 16% at the end of FY25, up from 8.8% a year earlier, indicating a significant rise in defaults. However, the microfinance sector is projected to grow by 12-15% in FY26 under a conservative scenario, returning to FY24 levels, Patil added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Standard
09-05-2025
- Business
- Business Standard
Muthoot Microfin tumbles after weak Q4 performance
Muthoot Microfin slumped 10.85% to Rs 130.25 after the company reported a net loss of Rs 401.15 crore in Q4 FY25 as against a net profit of Rs 119.76 crore in Q4 FY24. Revenue from operations declined by 13.71% YoY to Rs 555.03 crore during the quarter. Net Interest Income (NII) for the fourth quarter was Rs 321.05 crore, down 19.6% YoY. Pre-provision operating profit (PPOP) declined by 45.5% to Rs 130.29 crore in Q4 FY25 from Rs 239.28 crore in Q4 FY24. Impairment on financial instruments in the quarter ended on 31 March 2025 was Rs 652.01 crore, which is significantly higher as compared with the impairment charge of Rs 61.90 crore provided in the same period last year. The company posted a pre-tax loss of Rs 521.72 crore in Q4 FY25 as against a pre-tax profit of Rs 177.39 crore in Q4 FY24. For FY25, Muthoot Microfin has registered a net loss of Rs 222.52 crore as against a net profit of Rs 449.58 crore recorded in FY24. Revenue from operations added up to Rs 2561.69 crore (up 13.91% YoY). The companys gross loan portfolio (GLP) grew by 1.3% to Rs. 12,357 crore in FY25. The company disbursed loans amounting to Rs. 8,872 crore during the year. In FY25, the borrower base grew by 2.3% YoY to 34.3 lakhs across 1,699 branches. The GNPA of the company is at 4.84% as against GNPA of 2.29% a year ago. The NNPA (net of stage III provision) stood at 1.34% as against 0.91% last year. The company has maintained liquidity of Rs 697 crore of unencumbered cash and cash equivalents, alongside unutilized sanctions totalling Rs 596 crore. The capital position remained healthy, with a CRAR of 27.9%. Thomas Muthoot, chairman & non-executive director, Muthoot Microfin, said: FY25 has been a challenging year for the industry, testing our resilience and reaffirming that true strength lies not in avoiding adversity, but in responding to it with discipline, empathy, and adaptability. At Muthoot Microfin, we chose to prioritise asset quality and customer engagement over short-term profitability. While this conservative approach impacted our profitability due to elevated provisions and a deliberate management overlay of Rs 230 crore, but these were essential steps to strengthen our long-term portfolio health. As part of this effort, we have further tightened our underwriting norms and aligned fresh disbursements with the new SRO guardrails implemented from April 1, 2025. This has led to higher rejection rates, reduced borrower over-leverage, and early signs of improving credit discipline. With AUM reaching Rs. 12,357 crore as of March 2025, we continue to grow with discipline and caution. As we look ahead to FY26, we remain cautiously optimistic, guided by our belief that sustainable growth comes from strong fundamentals." Muthoot Microfin is a part of Muthoot Pappachan Group (also known as Muthoot Blue) and is one of the leading listed MFIs in India. As on 31 March 2025, the company has 3.43 million active customers served through 1,699 branches spread across 20 states and 388 districts with a gross loan portfolio (GLP) of 12,356.7 crore.
Business Standard
09-05-2025
- Business
- Business Standard
Muthoot Microfin reports standalone net loss of Rs 401.15 crore in the March 2025 quarter
Sales decline 13.71% to Rs 555.03 crore Net loss of Muthoot Microfin reported to Rs 401.15 crore in the quarter ended March 2025 as against net profit of Rs 119.76 crore during the previous quarter ended March 2024. Sales declined 13.71% to Rs 555.03 crore in the quarter ended March 2025 as against Rs 643.22 crore during the previous quarter ended March 2024. For the full year,net loss reported to Rs 222.52 crore in the year ended March 2025 as against net profit of Rs 449.58 crore during the previous year ended March 2024. Sales rose 13.91% to Rs 2561.69 crore in the year ended March 2025 as against Rs 2248.93 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 555.03643.22 -14 2561.692248.93 14 OPM % -52.2564.67 - 26.6065.67 - PBDT -510.53187.15 PL -246.06617.28 PL PBT -521.71177.39 PL -288.90581.84 PL NP -401.15119.76 PL -222.52449.58 PL
Time of India
08-05-2025
- Business
- Time of India
Muthoot Microfin reports Rs 401 crore net loss in Q4 amid asset quality crisis
Kolkata: Muthoot Microfin has suffered a Rs 401 crore net loss in the fourth quarter due to over 10 times jump in provisions against bad loans while it breached financial covenants relating to borrowing outstanding. #Operation Sindoor Live Updates| From Sindoor to showdown? Track Indo-Pak conflict as it unfolds India hits Lahore's Air Defence Radars in proportionate response Pakistan tried to hit military targets in these 15 Indian cities, New Delhi thwarts strikes The Kerala-headquartered microfinance lender earned a net profit of Rs 120 crore in the year ago period. The sector slipped into an asset quality crisis from the first quarter of FY25. For the full financial year ending March 31, 2025, the company suffered a net loss of Rs 223 crore as compared with Rs 450 crore of net profit in the preceding fiscal. Pre-provision operating profit for the year stood at Rs 868 crore, up 15% year-on-year. The company's total income for the quarter stood lower at Rs 556 crore against Rs 645 crore in the year-ago period. Its gross non-performing assets ratio soared to 4.84% at the end of the reporting period from 2.29% a year back. The Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance contributed to fluctuations in portfolio performance, the company said in a regulatory filing to stock exchanges. Provisions against bad loans during the quarter stood at Rs 652 crore against Rs 62 crore in the year-ago period. "There has been instances of breach covenants relating to borrowings outstanding during the quarter and the year ended as at 31 March 2025," the company said in a regulatory filing to stock exchanges. The lender's gross loan portfolio rose 1.3% year-on-year to Rs 12,357 crore while borrower base grew by 2.3% to 34.3 lakhs. "With a conscious decision to moderate disbursements for the fiscal year, our emphasis remained on conserving tier-1 capital, maintaining strong liquidity buffers, resolving asset quality challenges, and steadily improving collection efficiency," Sayeed said.
