Muthoot Capital Services Limited (MCSL) has recorded a net profit of ₹6.09 crore for Q1 of FY17, registering an increase of 36 per cent compared to the corresponding quarter last year. The company has grown its AUM from ₹1,090 crore to ₹1,559 crore, a growth of 43 per cent.
It disbursed 67,398 nos of 2 wheeler loans amounting to ₹340.56 crore during the quarter, compared to 48,566 nos amounting to ₹232.69 crore.
Besides extending its penetration in the southern markets and also aggressively pushing its disbursements in the North and East Indian markets, the increased focus on the top-up Loans have helped in increasing the disbursement, AUM and revenue.
The company has 4,43,480 customers as at the end of the quarter, compared to 3,51,811 customers at the corresponding time last year.
For faster growth at lower costs, Muthoot Capital has moved away from the traditional methods of sourcing through own manpower by outsourcing the same but with a sound monitoring process. This has been done while retaining crucial credit appraisal, collection supervision and strategy within the company. The aim is to help spread faster in a controlled manner at lower costs. With volumes coming in from areas where the company has spread last year and in the current quarter, the company has been able to grow at a pace faster than the 2 wheeler industry, said Thomas George Muthoot, the Managing Director.
The company achieved a total income of ₹79.76 crore for the quarter against ₹64.26 crore for the same period last year.
Aiming to emerge as a leading national player in two wheeler loans, he said Muthoot Capital Services is looking at launching new products in the markets where the company has a strong hold.