Q2FY23 Quarterly Result Announced for Muthoot Finance Ltd.
Muthoot Finance announced Q2FY23 results: Consolidated: Loan assets under management increased to Rs 64,356 crore, up by 6% YoY for H1FY23 Profit after tax increased to Rs 902 crore, up by 9% QoQ for Q2 FY23 Standalone: Loan assets under management increased to Rs 57,230 crore for H1FY23, up by 4% YoY Profit after tax increased to Rs 867 crore, up by 8% QoQ for Q2 FY23 George Jacob Muthoot, Chairman, stated, “We delivered another quarter of excellent performance by achieving a consolidated loan assets growth of 6% YoY, reaching Rs 64,356 crore. Consolidated profit after tax also saw an increase of 9% QoQ for Q2FY23 at Rs 902 crore. The contribution of our subsidiaries to the overall consolidated AUM remains 11%. Our microfinance subsidiary, Belstar, registered a remarkable YoY loan growth of 53% with AUM at Rs 5138 crore. We are also witnessing improved collections across micro finance, vehicle finance and home loans. We continue to monitor these sectors for emerging opportunities with an objective to drive a balanced business growth.” George Alexander Muthoot, Managing Director, said, "Our gold loan AUM stood at Rs 56,501crore, registering a YoY growth of 3% and a slight QoQ growth. The standalone profit after tax increased by 8% QoQ for Q2FY23 at Rs 867crore. Though we were able to migrate teaser loans to higher rates, full impact transformation will take a few more quarters. Further, despite the rising interest rate scenario, we were able to maintain our borrowing cost at 7.98% for Q2FY23. In the coming quarters, we expect the borrowing cost to remain in that range mainly due to the positive impact on account of retirement of ECB amounting to USD 450 million in October 2022, which carried a high cost. We expect that our improved focus on loan disbursements and recovery measures as well as borrowing costs will enable us to maintain NIM around 11-12%. We continue to invest in our various digital initiatives along with our Gold loan@home service. We will continue to work on strengthening our growth strategy with a focus on branch expansion and digital strategy.” Result PDF10-11-2022
