Muthoot Capital Services has achieved a net profit of ₹4.48 crore in Q1 FY17, registering an increase of 19.4 per cent, compared to ₹3.75 crore in the corresponding quarter last year.

This is in spite of moving to a four-month norm for determining NPAs.

The company has achieved 40 per cent growth in loan disbursements in the two-wheeler category during the period, compared to the same quarter last year.

It achieved total income of ₹64.26 crore, against ₹50.65 crore in the same period last year. Financial expenses increased to ₹25.24 crore from ₹20.86 crore during the corresponding period last year, while the average loan book grew 29 per cent.

Loans disbursed The company disbursed 48,582 loans amounting to ₹256.22 crore, compared to 36,747 loans amounting to ₹196.10 crore last year.

The total loan portfolio increased to ₹1,090.34 crore by the end of the quarter against ₹878.20 crore, recording an increase of 24.15 per cent. The company now has a customer base of 3,51,811; compared to 2,99,385 customers last year.

Car financing According to Thomas George Muthoot, Managing Director of Muthoot Capital Services, the aim is to emerge as a leading national player in the two-wheeler loans space.

Given the huge demand-gap vacuum in the used car segment, he said there are also plans to foray into new car/used car financing segment.

R Manomohanan, Chief Executive Officer, said the company is targeting major growth from North Indian States and West Bengal in the current financial year.

Funding sources “We are on the lookout for additional sources of funding, including NCDs (non-convertible debentures), which will be done through public issue and private placement, CPs (commercial papers), securitisation, etc, in addition to the traditional sources of bank loans and public deposits,” he said.

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