Muthoot Finance net profit for 2013-14 dips 22 per cent

KOCHI: Muthoot Finance Ltd. has reported 22 per cent drop in net profit for the year 2013-14. The net profit fell to Rs 780 crore from Rs 1004 crore in the previous year. The total income stood at Rs 4947 crore, 8% fall year-on-year.

The company has recommended a higher dividend of 60% for the year compared with 45 % in the previous year. The gold loan outstanding has gone down by 17% to Rs 21618 crore from Rs 26,000 crore.

Muthoot Finance chairman George Alexander Muthoot said despite turbulent times of fluctuating gold prices, sluggish business and regulatory pressures, the company was able to post satisfactory results . He said the company has declared a better dividend as it was confident of regaining the business and taking the asset portfolio to March 2013 level of Rs 26,000 crore.

With RBI raising the LTV ratio to 75 % in January , the company was able to better its performance in the last quarter. The company has enlisted the services of Mckinsey for revamping the marketing, sales and HR sectors of the company to make it more efficient, he said.