Gold-loan lender Muthoot Finance has registered a 59 per cent rise in net profit at ₹841 crore in Q1 FY21 against ₹530 crore in the corresponding period of the previous year.
The company has also achieved a consolidated PAT of ₹858 crore against last year’s ₹563 crore, an increase of 52 per cent.
However, loan assets of Muthoot Finance decreased by ₹315 crore on account of closure of branches in April due to the pan-India lockdown. The loan assets stood at ₹41,296 crore, compared to ₹35,816 crore in the previous year.
MG George Muthoot, Chairman, said the company has up-scaled its digital platforms to ensure business continuity following the disruptions in business due to the pandemic. “We recorded a four-fold jump in digital loan disbursals. We are incentivising customers with a cash-back scheme to service interest payments through online platforms. With businesses resuming, we have witnessed a surge in gold loans, as it is the most convenient form of availing working capital for small business and traders to kick-start their businesses.”
George Alexander Muthoot, Managing Director, said: “We are looking forward to achieve a 15 per cent growth in gold loan portfolio for FY21. The company also maintained a liquidity buffer of ₹8,477 crore as cash, bank and investments in liquid funds as on June 30. The collections in non-gold loan portfolio have significantly improved month-on-month. Additional Covid ECL provisions to the extent of ₹32 crore were made for non-gold loan portfolio in the quarter.”
Muthoot Homefin (India) Ltd, the wholly-owned subsidiary, achieved a profit after tax of ₹0.41 crore in Q1 against ₹6 crore in the previous year. The company also made a Covid ECL provision of ₹13 crore additionally.
Belstar Microfinance Limited achieved a PAT of ₹15 crore in Q1 against ₹23 crore in the previous year. The company made a additional Covid ECL provision of ₹6.83 crore.
Muthoot Insurance Brokers Pvt Ltd generated a PAT of ₹4 crore in Q1 against ₹3 crore in the previous year.
The Sri Lankan subsidiary, Asia Asset Finance PLC, incurred a loss of LKR 2 crore in Q1 FY21 against previous year profit after tax of LKR 3 crore.
The loan portfolio of Muthoot Money, engaged mainly in extending loans for vehicles, decreased by ₹12 crore in Q1. The company also made an additional Covid ECL provision of ₹12.19 crore.