Muthoot Capital Services has posted a steady set of Q4 numbers. While total income has grown 23 per cent, profits are up 12 per cent. Speaking to Bloomberg TV India , Muthoot Capital Services CEO R Manomohanan says the diversification to business loans has reaped immense benefit and boosted revenues. The company is looking to increase its loan book to ₹1,500 crore this fiscal from ₹1,059 crore in FY16 by diversifying business and expanding in new geographies, he said.

Muthoot Capital Services posted a steady Q4 performance with net profit rising 12 per cent. Can you take us through the highlights of the quarter?

We at Muthoot Capital are basically into two-wheeler financing. We did a disbursement of ₹235 crore under two-wheeler financing in the fourth quarter of FY16. We have also diversified slightly into business loans and disbursed ₹80 crore during the quarter. The total disbursement was ₹315 crore. The total disbursements were ₹928 crore during FY16 compared with ₹648 crore in the previous year. The revenue for the year was ₹229 crore as compared with ₹191 crore in the previous year. If you take it quarter wise, the revenue was ₹63 crore in Q4 of FY16 as against ₹52 crore in the corresponding quarter of last year. The profit before tax was ₹35.45 crore for the entire year and the net profit was ₹22.85 crore. Our Board met on Tuesday and finalised the financial statements for the year and also confirmed the interim and final dividend for the year.

What was the total loan-book size during FY16 and what’s your target for FY17?

We had a loan book of ₹1,059 crore as on March 31, 2016, compared with ₹840 crore at the end of previous year. So, we have seen a growth of nearly ₹200 crore during the last financial year. We are planning to exceed ₹1,500 crore in FY17.

In terms of the loan book growth, which segment has seen higher traction?

Earlier, we were focusing on two-wheeler financing only. But last financial year, we started adding business loans to our portfolio. That has contributed substantially. Compared with ₹80-crore loan disbursement in FY15, we have been able to increase disbursement to ₹148 crore in FY16. This fiscal year, the plan is to disburse ₹200 crore under business loans.

Talking about geographical distribution, earlier you had a lot of over-dependence on the Southern region. In recent months, you have been expanding in Rajasthan, Delhi, Haryana, as well as Punjab. How are business opportunities looking like in the Northern states? Which markets have higher growth potential? Are you looking to foray into other segments as well?

Regarding geographical expansion, we are present in 7 states in the North. The disbursement started in a small way last fiscal year. But this year, we are planning to have a total disbursement of ₹150 crore in the northern states, primarily NCR, Punjab, Haryana, Rajasthan, UP and West Bengal.

Attrition has been a major concern, especially in the first half of this financial year. What is the outlook on that now?

Attrition is a concern. We have been able to reduce it substantially by improving the incentive and salary structures. I understand there will be some amount of attrition, but to a great extent we have been able to address that.

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