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Gold loan lender Muthoot Finance has posted 11 per cent growth in its net profit to ₹994 crore in Q2FY22 against ₹894 crore in Q2FY21.
Consolidated profit was ₹1,002 crore compared to ₹979 crore in the corresponding period of the previous fiscal. Loan assets stood at ₹55,147 crore compared to ₹47,016 crore last year, a growth of 17 per cent. Over the quarter, gold loan assets increased by ₹2,613 crore, a rise of 5 per cent.
Also see: Muthoot Fincorp organises Small Shop Days in Kochi
George Jacob Muthoot, Chair, Muthoot Finance, said, “As the second wave of the pandemic ebbs and the economy further unlocks, corporate India has emerged stronger and better. We were able to maintain growth momentum during the quarter with all of our branches now open for business. Our consolidated AUM stood at ₹60,919 crore as of end September 2021, clocking a growth of five per cent QoQ and a growth of 17 per cent YoY despite a challenging business environment. The contribution of our subsidiaries to the overall consolidated AUM stands steady at 10 per cent.”
Growth in gold loans
George Alexander Muthoot, Managing Director, Muthoot Finance, said, “The demand environment remains strong and as we enter the festive season, we remain optimistic about growth momentum in gold loan over the second half of FY22. We are optimistic about growing our gold loan book further and maintain 15 per cent growth guidance for FY22.
Also see: Why gold loans continue to glitter in these trying times
“We are witnessing improved collections across microfinance, vehicle finance and home loans. In the last quarter, we had consciously decided to go slow on non-gold lending business. We continue to remain conscious and monitor the space for emerging opportunities. We will continue to follow the strategy of balanced growth while maintaining overall asset quality,” he added.
Subsidiary contributions
Muthoot Homefin (India) has posted a PAT of ₹0.23 crore in Q2 and total revenue of ₹46 crore. Belstar Microfinance achieved a PAT of ₹2 crore and total revenue for Q2 stood at ₹150 crore. Muthoot Insurance Brokers achieved a PAT of ₹5 crore. Asia Asset Finance achieved a PAT of LKR 2 crore (around ₹0.73 crore). Muthoot Money achieved a PAT of ₹0.92 crore.
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