Muthoot Finance Q3 Results: Profit, net interest income rise, beat estimates

Gold loan-focused non-bank lender Muthoot Finance Ltd on Wednesday (February 14) reported a 13.9% year-on-year (YoY) increase in net profit at ₹1,027.3 crore for the third quarter that ended December 31, 2023.

In the corresponding quarter last year, Muthoot Finance had posted a net profit of ₹901.7 crore, the company said in a regulatory filing. CNBC-TV18 poll had predicted a profit of ₹985.8 crore for the quarter under review.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 11.8%, coming at ₹1,905.7 crore against ₹1,704 crore in the corresponding quarter of FY23. CNBC-TV18 Polls had predicted net interest income of ₹1,871.5 crore for the quarter under review.

The consolidated loan assets under management grew 27% year-on-year to ₹82,773 crore at 9M of FY24 as against ₹65,085 crore last year. During the quarter, consolidated loan assets under management increased by ₹3,280 crore i.e. an increase of 4% quarter-on-quarter.

The standalone loan assets under management stood at ₹71,182 crore, up by 23% year-on-year, and standalone profit after tax stood at ₹2,993 crore for 9M of FY24, up by 16% year-on-year.

George Jacob Muthoot, chairman of The Muthoot Group said, "While the consolidated loan assets under management increased by 27% year-on-year, the contribution of subsidiaries increased to 14% from 12% last year. The contribution of subsidiaries in the consolidated profit after tax also increased to 9% from 4% last year."

Muthoot Homefin (India) Ltd loan AUM stood at ₹1,783 crore in Q3 of FY24 as against ₹1,410 crore in Q3 FY23, an increase of 26% YoY. Total revenue for Q3 of FY24 and 9M FY24 stood at ₹54 crore and ₹147 crore as against ₹41 crore and ₹116 crore in Q3 of FY23 and 9M of FY23, registering a growth of 34% year-on-year and 27% year-on-year respectively.

The results came after the close of the market hours. Shares of Muthoot Finance Ltd ended at ₹1,383, up by ₹15.60, or 1.14%, on the BSE.