The net profit of Muthoot Capital Services Ltd (MCSL) was down at ₹13.6 crore in Q4 of the last fiscal against ₹22.7 crore in the corresponding period of the previous fiscal.

Thomas George Muthoot, Managing Director, said, “It has been a challenging year for all businesses, and especially two-wheeler business. The escalation in price was one of the key deterrents to growth with the introduction of ABS standards and subsequent preparation of OEMs and dealers for BS-VI transition in 2020, besides mandatory five-year insurance. This was followed by a disruption in the form of Covid-19.”

The total income for the quarter touched ₹146.8 crore. The company disbursed two-wheeler loans amounting to ₹329.9 crore and had a total disbursement of ₹347.5 crore during the quarter. The total AUM (assets under management) reached ₹2,650 crore at the end of the quarter, including the assigned portfolio of ₹52.3 crore.

For the same quarter last year, the company had a total disbursement of ₹605.7 crore and AUM at the end of the same quarter last year was at ₹2,744.6crore. During the same quarter last year, the company reported total revenue of ₹137.2 crore.

Madhu Alexiouse, Chief Operating Officer, pointed out that there was a considerable slowdown in the economic activities right from the start of the Q4. The lockdown in the latter half of March impacted the business volume in terms of loan origination.

According to Vinod Panicker, Chief Financial Officer, a cautious approach was taken towards the end of Q4 with the Covid raising concerns. The disbursements were reduced and when disbursed, LTVs were reduced significantly. Based on an RBI notification, moratorium was given to those who asked for it and in many other cases suo moto.

Related Topics
comment COMMENT NOW