The country's largest gold loan company Muthoot Finance Ltd on Thursday (November 9) reported a 14.3% year-on-year (YoY) rise in net profit at ₹991 crore for the second quarter that ended September 30, 2023.
In the corresponding quarter last year, Muthoot Finance posted a net profit of ₹867.2 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹1,043.2 crore for the quarter under review.
The company achieved its highest growth in the first half of FY24 in both loan and gold assets. The loan assets grew 21% year-on-year (YoY) or ₹11,771 crore while the lender's gold loan assets increased by ₹11,016 crore or 20% over the year-ago period.
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, jumped 18.2%, coming at ₹1,858.4 crore against ₹1,572 crore in the corresponding quarter of FY23.
The gross non-performing assets (NPAs) stood at 4.01% in the September quarter against 4.26% in the June quarter. In monetary terms, gross NPAs stood at ₹2,763.9 crore against ₹2,878.9 crore quarter-on-quarter (QoQ).
Muthoot Finance's consolidated loan assets under management grew 24% YoY to ₹79,493 crore in the first half of FY24 against ₹64,356 crore last year. During the quarter, consolidated loan assets under management increased by ₹2,694 crore i.e. an increase of 4% QoQ.
The company registered profit after tax of ₹1,966 crore in H1 FY24 against ₹1,669 crore in H1 FY23, an increase of 18% YoY. The loan assets stood at ₹69,002 crore in H1 FY24 compared to ₹57,230 crore in H1 FY23, registering a YoY growth of 21%.
During H1 FY24, gold loan assets increased by ₹5,642 crore, registering a growth of 9%. During the quarter, gold loan assets increased by ₹1,478 crore.
Muthoot Group Chairman George Jacob said the company continues its growth journey, delivering 24% year-on-year consolidated loan AUM growth, which reached ₹79,493 crore, and 24% year-on-year growth in consolidated profit after tax of ₹2,140 crore for first half of FY 2024.
The results came after the close of the market hours. Shares of Muthoot Finance Ltd ended at ₹1,310, down by ₹12.55, or 0.95%, on the BSE.
