Money & Banking

Muthoot Capital Services net rises 62% in Q4

V. Sajeev Kumar Kochi | Updated on January 15, 2018 Published on April 18, 2017

Thomas George Muthoot

BL19_BNK_THOMAS_GEORGE_MUTHOOT2

Looking at business opportunities beyond 2-wheeler financing has helped, says MD

Muthoot Capital Services, a leading player in the two-wheeler financing segment, has registered a 62 per cent growth in its net profit at ₹11.12 crore in the fourth quarter against ₹6.86 crore in the same period last year.

The total income increased to ₹79.80 crore from ₹63.40 crore, a 26 per cent growth. On the back of aggressive two-wheeler loan financing and corporate lending portfolio, the company had assets under management (AUM) of ₹1,440 crore as on March 31.

The board, which met in Kochi on Tuesday, also declared issue of bonus shares in the ratio 1:10. Thomas George Muthoot, Managing Director, said: “While the robust performance in spite of the tough market conditions excited us, the bigger excitement was largely on account of looking at business opportunities beyond the existing two-wheeler financing in the already established markets both in terms of geography and new products.”

According to Madhu Alexiouse, COO, the company will continue its expansion plans and enter more markets in the coming months. Emphasis on digitisation and automation at all levels will ensure faster growth at lower cost in quicker time.

On a full-year basis, the company recorded a PAT of ₹30.09 crore in FY17 against ₹22.85 crore in the year-ago period, registering a 32 per cent growth.

The total income rose 24 per cent to ₹284.20 crore (₹228.49 crore). The improved performance was the result of a substantial growth in loan disbursements and foray into corporate lending.

After successful operations in the southern and western markets, the company has expanded into the northern and eastern markets. It is also looking at several new products over the next 12-18 months to grow its portfolio.

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Published on April 18, 2017
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