Muthoot Finance net up 46% at ₹1,720 crore

Muthoot Finance has registered a 46 per cent increase in net profit at ₹1,720 crore during 2017-18 against ₹1,180 crore in the previous year.

Loan assets stood at ₹29,138 crore as of March 31, 2018, against ₹27,278 crore as of March 31, 2017, an year-on-year growth of 7 per cent. Income tax paid during the year stood at a historic high of ₹1,037 crore.

MG George Muthoot, Chairman, stated that while the thrust on increasing the gold loan business continues, the focus on diversification of the lending portfolio has started yielding results.

The consolidated loan book has increased by 12 per cent year-on-year to ₹32,154 crore. “We are proud to announce that we are one of the top 50 corporate Income Tax payers in the country,” he added.

Muthoot Homefin (India) increased its loan portfolio by ₹1,024 crore to ₹1,465 crore during the year. Total revenue stood at ₹126 crore against the previous year’s ₹24 crore.

Belstar Investment and Finance, an RBI-registered micro-finance NBFC and a subsidiary where Muthoot Finance holds a 66.61 per cent stake, grew its loan portfolio during the year by 97 per cent to ₹1,137 crore.

It achieved a profit after tax of ₹34 crore against the previous year’s ₹10 crore. Its gross and net NPAs stood at 0.76 per cent and 0.30 per cent as on March 31, 2018.

Muthoot Insurance Brokers generated a first year premium collection of ₹101 crore during the year (₹70 crore in the previous year). Profit after tax came in at ₹11 crore (₹6 crore).

George Alexander Muthoot, Managing Director, said that the subsidiaries have been contributing to 10 per cent of the group assets. “We are expecting this to increase to 15 per cent in the coming year.”

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