Muthoot Finance’s consolidated profit after tax rose to ₹902 crore in Q2 FY23 compared to ₹825 crore in Q1 FY23.
Consolidated loan assets under management grew 6 per cent to ₹64,356 crore in H1 FY23 against ₹60,919 crore last year. During the quarter under review, consolidated loan assets under management increased by ₹912 crore. Consolidated profit after tax for H1 FY23 stood at ₹1,727 crore against ₹1,981 crore last year.
George Jacob Muthoot, Chairman said, “We delivered another quarter of excellent performance by achieving a consolidated loan assets growth of 6 per cent y-o-y reaching ₹64,356 crore. The contribution of our subsidiaries to the overall consolidated AUM remain at 11 per cent. Our Microfinance subsidiary, Belstar has registered a remarkable y-o-y loan growth of 53 per cent with AUM at ₹5,138 crore. We are also witnessing improved collections across micro finance, vehicle finance and home loans. We continue to monitor these sectors for emerging opportunities with an objective to drive a balanced business growth.”
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George Alexander Muthoot, Managing Director, said the standalone profit after tax increased by 8 per cent for Q2 at ₹867 crore. Though we were able to migrate teaser loans to higher rates, full impact transformation will take few more quarters. Despite the rising interest rate scenario, we were able to maintain our borrowing cost at 7.98 per cent for Q2 FY23. In the coming quarters, we expect the borrowing cost to remain in that range mainly due to the positive impact on account of retirement of ECB amounting to $450 million in October 2022 which carried a high cost.
We expect that our improved focus on loan disbursements and recovery measures as well as borrowing cost will enable us to maintain NIM around 11-12 per cent. We continue to invest in our various digital initiatives along with our Gold loan@home service. We will continue to work on strengthening our growth strategy with focus on branch expansion and digital strategy”