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A robust growth in the country’s two-wheeler segment seems to have benefited Muthoot Capital Services to perform well in FY18 due to its focus on two-wheeler finance.

The company achieved a PAT of ₹53.7 crore on a full-year basis compared to ₹30.1 crore in the previous fiscal. Net profit during the quarter also rose to ₹21.5 crore from ₹11.1 crore, registering a 94 per cent growth. On the back of aggressive loan book growth, which swelled by 55 per cent, the assets under management touched ₹2,238 crore during the period, up from ₹1,439.7 crore.

Thomas George Muthoot, Managing Director, attributed the improved performance to the direct result of a substantial growth in loan disbursements on the back of the growth in the two-wheeler segment.

After successful operations in South India, the company expanded to the northern and eastern Indian markets over the last two-to-three years. During the year, the company performed well in these markets, and its emphasis on the western Indian market also boosted the volumes. The non-south markets witnessed 100 per cent growth y-o-y and would be the focus in FY19, he said.

Top-up loans

The company started top-up loans during the year; it also conducted a test pilot of used-car financing in Q4.

“We are also looking at several new products over the next 12-18 months to grow its portfolio and will look at avenues for cross-selling other products,” he said, adding that MCSL is piloting a gold-backed two-wheeler financing plan for those customers whose proposals have been rejected by banks. These loans will be linked to gold loan schemes by taking gold as collateral.

According to Madhu Alexiouse, Chief Operating Officer, the company has already disbursed more than 12 lakh loans till date in the two-wheeler financing segment. The total number of live accounts as on March 31 stood at approximately 5.7 lakh. “With a strong emphasis on digitisation and automation across levels, we will continue with rapid expansion plans across markets,” he said.

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