Muthoot Finance

Concall Notes – Aug 2023

Summary:

Financial Performance:

• Muthoot Finance reported a strong performance in Q1 FY ’24 with a 21% YoY increase in consolidated loan assets to 76,799 crores.
• Highest ever quarterly gold loan disbursement of 53,600 crores and all-time high gold loan portfolio growth of 4,164 crores.
• Consolidated PAT increased by 27% YoY to 1,045 crores, while standalone profit after tax increased by 22% YoY to 975 crores.

Expansion and Branch Openings:

• The company opened 59 new branches in the quarter and received permission to open 140 new branches from the RBI.

Subsidiary Performance:

• Muthoot Home Finance saw a gross AUM of 1,501 crores and disbursed 109 crores in the quarter.
• Belstar Microfinance witnessed improvement in disbursement and saw gross loan assets cross the 7,000 mark.
• Muthoot Finance’s subsidiary, Muthoot Insurance Brokers, generated a total premium of 148 crores.
• The Sri Lankan subsidiary, Asia Asset Finance PLC, saw its loan portfolio grow to 2,010 Sri Lankan rupees and reported a profit after tax of 6 crores.

Interest Rates and Borrowing Costs:

• Muthoot Finance expects to maintain its net interest margin and spread and will increase lending rates if borrowing costs continue to rise.

Customer Support and Growth Strategy:

• The company is focused on maintaining a customer-friendly approach and providing support to customers facing financial difficulties.
• Muthoot Finance aims to maintain its active customer base and continue its growth in the microfinance and two-wheeler financing segments.

Liquidity and Fundraising:

• The company is comfortable with its current liquidity levels and will continue to raise funds as needed.