Muthoot Finance Q1 net profit rises 30% YoY

Kochi: Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 30%, at Rs. 351 crore for Q1 2017-18 as against Rs. 270 crore in the previous year. Loan assets increased by 8% to Rs 27852 crore. The total income also rose by 8% to Rs 1399 crore.

The board has decided to acquire remaining 11.73% holding with other shareholders in Muthoot Homefin (India) Ltd at an aggregate price of Rs. 38.72 crore. With this acquisition MHIL will become a wholly owned subsidiary. The board has decided to infuse Rs.100crs in MHIL as equity share capital.

Commenting on the results M G George Muthoot, Chairman stated, “Company could achieve a growth of Rs.574crs in its loan assets during the quarter even in the backdrop of seemingly challenging external environment which shows that initiatives taken by the company are delivering results. The profit after tax showed an increase of 30% y-o-y at Rs.351crore , a historic record performance.”

Speaking on the occasion George Alexander Muthoot, managing director said,``During the quarter, the housing finance company has grown its loan portfolio to Rs.596 crore and continues its stronger focus in the affordable housing segment. The micro finance subsidiary which has a strong SHG model could increase its loan portfolio, during the quarter, by 11% reaching Rs.628 crore.The NBFC in Sri Lanka could increase its loan portfolio by 5%. First Year Premium collections in the Insurance Broking subsidiary have increased by 60% y-o-y at Rs 16 crore.”