The consolidated profit after tax of Muthoot Finance Ltd has registered a 9 per cent increase at Rs 563 crore in Q1 against Rs 518 crore in the corresponding period last year.
The gold finance company posted a standalone net profit of Rs 530 crore in Q1 of FY20, up 8 per cent, as against Rs 492 crore in the previous year. During the quarter, the Consolidated Loan Assets under management increased by 5 per cent of Rs1924 crore.
Muthoot Homefin (India) Ltd, a wholly owned subsidiary, achieved a profit-after-tax of Rs 6 crore in Q1 FY20. Belstar Investment and Finance Pvt Ltd, an RBI registered micro-finance NBFC and subsidiary company, achieved a PAT of Rs 23 crore in Q1 FY20 against previous year’s figure of Rs 12 crore.
Muthoot Insurance Brokers Pvt Ltd, an IRDA registered direct-broker in insurance products, generated a PAT of Rs 3 crore in Q1 against Rs 2 cores in the previous year.
The company's Sri Lankan subsidiary – Asia Asset Finance PLC – generated a PAT of LKR 3 crore in Q1 FY20, against the previous year PAT of LKR 2 crore.
According to MG George Muthoot, Chairman, the company declared dividend of Rs 12 per equity share during the quarter, which is 120 per cent of the face value with a total payout of Rs 580 crore for FY19.
George Alexander Muthoot, Managing Director, said that the company, in the first quarter, disbursed on an average, loans of Rs 6,500 crore per month and made collections of Rs 6000 crore per month which resulted in a net growth of Rs 1,500 crore for the quarter.
Because of such heavy cash inflows from collections, the company does not face any liquidity issues. However, due to the uncertainty around NBFC sector there are challenges in getting fresh bank funding for meeting the growth requirements.
"We have been pursuing alternative sources of funding through public issuance of retail NCDs. Further as on June 30, 2019, we hold gold jewellery worth Rs 550 billion for a loan amount of Rs 352 billion ie. security of 156 per cent of the loan amount," he said.
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