Muthoot Finance Q4FY20 results

Kochi, June 17, 2020:  

Consolidated Loan Assets Under Management increased by 22% YoY at Rs.46,871crs for FY20

Consolidated Profit after Tax increased by 51% YoY at Rs.3,169crs for FY20

Standalone Loan Assets Under Management increased by 22% YoY at Rs.41,611crs for FY20

Standalone Profit after tax increased by 53% YoY at Rs.3,018crs for FY20

Consolidated Results of Muthoot Finance Ltd

Muthoot Finance Ltd’s Consolidated Loan Assets under management achieved a YoY increase of 22% at Rs.46,871crs as against last year of Rs.38,304crs for FY20. Consolidated Profit after tax achieved a YOY increase of 51% of Rs.3,169crs as against last year of Rs.2,103crs for FY20

	FY20	FY19	YOY %
Group Branch Network	5,330	5,020	6%
Consolidated Gross Loan Assets of the Group (Rs. In crores)	46,871	38,304	22%
Consolidated Profit of the Group (Rs. In crores)	3,169	2,103	51%
Contribution in the Consolidated Gross Loan Assets of the Group
Muthoot Finance	41,216	33,746	22%
Subsidiaries	5,655	4,558	24%
Contribution in the Consolidated Profit of the Group
Muthoot Finance	2,993	1,946	54%
Subsidiaries	176	157	12%

Standalone Results of Muthoot Finance Ltd and its subsidiaries

Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 53%, at Rs.3,018crs for FY20 as against Rs.1,972crs in the previous year.  Loan Assets stood at Rs.41,611crs as at March 31, 2020 as against Rs.34,246crs as at March 31, 2019, Y-o-Y growth of 22%. During the quarter, gold loan assets increased by Rs. 3,113crs.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary , increased its loan portfolio to Rs.1,977crs as against previous year of Rs.1,908crs , a YoY increase of 4%. Total revenue for FY 20 stood at Rs.288crs as against previous year total revenue of Rs.226crs. It achieved a net profit of Rs.32crs in FY20 as against previous year profit of Rs.36crs. Its Stage III Asset on Gross Loan Asset % as on March 31,2020 stood at 1.71%.

M/s. Belstar Microfinance Limited (BML) , an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs.2,631crs as against last year of Rs.1,842crs, a YoY increase of 43%. During Q4 FY20, loan portfolio increased by Rs.346crs. It achieved a profit after tax of Rs.99crs in FY20 as against previous year profit after tax of Rs.73crs. Its Stage III Asset on Gross Loan Asset % as on March 31,2020 stood at 0.91%.

Muthoot Insurance Brokers Pvt Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs.323crs in FY20 as against Rs.268crs in the previous year. It generated a Profit after Tax of Rs.11crs in FY20 as against Rs.15crs in the previous year.

The Sri Lankan subsidiary - Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 72.92% stake, increased its loan portfolio to LKR 1,384crs as against last year of LKR 1,257crs, a YoY increase of 10%. During Q4 FY20, loan portfolio increased by LKR 83crs. Total revenue for FY20 stood at LKR 333crs as against previous year total revenue of LKR 287crs. It generated a profit after tax of LKR 7cr in FY 20 as against previous year profit after tax of LKR 10crs.

Muthoot Money Pvt Ltd (MMPL), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MMPL is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. Recently, Company has started extending loans for Commercial Vehicles and Equipments.  During FY20, it has increased its loan portfolio to Rs.509crs, as against last year of Rs.311crs, a YoY increase of 64%.  During Q4 FY20, loan portfolio increased by Rs.18crs. Total revenue for FY20 stood at Rs 70crs as against previous year total revenue of Rs 16crs.

Management Quote

Commenting on the results M G George Muthoot, Chairman stated, “We are glad to announce that consolidated loan assets of the Group grew by 22% at Rs.46,871crs during FY20 as against last year of Rs.38,304crs. Consolidated Profit increased by 51% at Rs.3,169crs during FY20 as against last year of Rs.2,103crs. During the quarter, gold loan portfolio of Muthoot Finance increased by Rs.3,113crs to Rs.41,611crs. Standalone profit of Muthoot Finance for the year ended March 31, 2020 increased by 53% at Rs.3,018crs.”

George Alexander Muthoot, Managing Director , on this occasion stated , “Company could open majority of its branches since April 20 and as of now all branches are functioning normally. Disbursements and collections have normalized and we are expecting increase in disbursement once movement of people increases and economic activity level picks up. Company continues to maintain adequate liquidity to meet all repayment obligations. We have been able to raise fresh Commercial paper, NCDs, Bank limits etc. We are looking to grow gold loan business by about 15% for the whole year.”

Financial Highlights (MFIN) :

	FY20	FY19	YOY	Q4 FY20	Q4 FY19	YOY
	(Rs.in Crs)	(Rs.in Crs)		(Rs.in Crs)	(Rs.in Crs)
Total Income	8,723	6,881	27%	2,403	1,880	28%
Profit Before Tax	4,057	3,077	32%	1,097	794	38%
Profit After Tax	3,018	1,972	53%	815	512	59%
Earnings Per Share(Basic) Rs.	75.31	49.27	53%	20.33	12.77	59%
Loan Assets	41,611	34,246	22%	41,611	34,246	22%
Branches	4,567	4,480	2%	4,567	4,480	2%

Particular	FY20	FY19	Q4 FY20	Q4 FY19
Return on Average  Loan assets	8.11%	6.31%	8.13%	6.13%
Return on Average Equity	28.26%	22.40%	28.39%	21.46%
Book Value Per Share (Rs.)	288.43	244.27	288.43	244.27

Particular	FY 20	FY19
Capital Adequacy Ratio	25.47	26.05
Share Capital & Reserves (Rs. in Crs)	11,572	9,793

Business Highlights (MFIN):

Particular	FY20	FY19	Growth (YoY)
Branch Network	4,567	4,480	2%
Gold Loan Outstanding (Rs. in Cr)	40,772	33,585	21%
Credit Losses (Rs. in Cr)	59.92	25.92	131%
% of Credit Losses on Gross Loan Asset Under Management	0.14%	0.08%	75%
Average Gold Loan per Branch (Rs. In Cr)	8.93	7.50	19%
No. of Loan Accounts (in lakh)	80.22	80.62	-0.5%
Total Weight of Gold Jewellery pledged (in tonnes)	175.76	169.50	4%
Average Loan Ticket Size	50,824	41,658	22%
No. of employees	25,554	24,224	5%