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Muthoot Finance, the largest gold loan financier in terms of loan portfolio, today reported 6 per cent drop in net profit for the quarter to March at Rs 220 cr against Rs 235 cr last year on higher tax outgo, sending its shares down by over 5 per cent.
“Growth was impacted not only due to regulatory uncertainties but also because we had decided to grow at a slower pace. But the main reason for the dip in net income was the higher tax outgo in the reporting quarter which rose to Rs 517 crore from Rs 442 crore,” Oommen Mammen, Chief Financial Officer, Muthoot Finance said when asked about the reason for drop in quarterly net profit.
However, for the full year, net profit of the Kochi-based company rose 13 per cent to Rs 1,004 crore compared to Rs 892 crore in the previous fiscal.
Total loan rose Rs 674 crore to Rs 26,386 crore, while total income was up 18 per cent to Rs 5,387 crore.
Commenting on the results, chairman of the company MG George Muthoot said, “for the first time the company crossed Rs 1,000-crore mark in net profit despite a tumultuous year marked by regulatory changes and sentiment driven market speculations affecting the interest of key stakeholders.”
Reacting to the numbers, shares of the company fell sharply by 5.13 per cent to close at Rs 149.80 apiece on the BSE.
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