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Muthoot Finance Q2FY22 Results

Consolidated Loan Assets Under Management increased to Rs.60,919 crores, up by 17% YoY for H1 FY22

George Alexander Muthoot, Managing Director, Muthoot Finance
  • Consolidated Profit after Tax increased to Rs.1,981 crores, up by 11% YoY  for H1 FY22
  • Standalone Loan Assets Under Management increased to Rs.55,147 crores for H1 FY22, up by 17% YoY
  • Standalone Profit after tax increased to Rs.1,965 crores for H1 FY22 , up by 13% YoY

A meeting of the Board of Directors of Muthoot Finance Ltd. was held today to consider and approve the unaudited standalone and consolidated results for the quarter and half year ended September 30, 2021.

Management Quote:

While commenting on the results George Jacob Muthoot, Chairman, Muthoot Group said, “As second wave of the pandemic has ebbed and 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 loan AUM stood at Rs.60,919 crores as of end September 2021, clocking a growth of 5% QoQ and a growth of 17% YoY despite a challenging business environment. Consolidated Profit after tax stood at Rs.1,981 crores for the half year ended September 2021, registering a growth of 11% YoY. The contribution of our subsidiaries to the overall consolidated AUM stands steady at 10%. As a responsible NBFC, we have been consistently working towards an overall growth strategy focusing on governance, performance and ESG framework.”

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% growth guidance for FY22. We are witnessing improved collections across Micro finance, 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.”

Consolidated Results of Muthoot Finance Ltd

Muthoot Finance Ltd Consolidated Loan Assets under management grew 17% YoY to Rs. 60,919 crores as at H1FY22  as against Rs.52,286 crores last year. During the quarter, Consolidated Loan Assets under management increased by Rs.2,784crores ie. an increase of 5% QoQ. Consolidated Profit after tax for H1FY22 grew 11% YoY to Rs. 1,981 crores as against Rs.1,788 crores last year.

                                                                                                                                                                                                                (Rs. in Crores)

 H1 FY22H1 FY21YoY %Q2 FY22Q1 FY22QoQ %FY21YTD%
Group Branch Network (Nos.)5,4395,3811%5,4395,443-0.07%5,451-0.2%
Consolidated Gross Loan Assets of the Group60,91952,28617%60,91958,1355%58,2805%
Consolidated Profit of the Group1,981 1,78811%1,002 9792%3,819
Contribution in the Consolidated Gross Loan Assets of the Group
Muthoot Finance55,10246,67818%55,10252,4935%52,3945%
Subsidiaries5,8175,6084%5,8175,6423%5,886-1%
Contribution in the Consolidated Profit of the Group
Muthoot Finance1,961 1,72214%992 9692%3,700 
Subsidiaries 2066-70% 10100%119 

Standalone Results of Muthoot Finance Ltd and its subsidiaries

Muthoot Finance Ltd (MFIN), India’s largest gold loan company in terms of loan portfolio, registered a net profit of Rs.1,965 crores in H1 FY22 as against Rs.1,735 crores in H1FY21, an increase of 13% YoY . The net profit stood at Rs.994crores in Q2FY22 as against Rs.894 crores in Q2FY21, an increase of 11% YoY. Loan Assets stood at Rs.55,147 crores as compared to Rs.47,016 crores last year, registering a growth of 17% YoY. During the quarter, gold loan assets increased by Rs.2613 crores, an increase of 5%.

Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary of Muthoot Finance, the loan portfolio stood at Rs.1,640 crores for the half year ended FY2022. Total revenue for Q2 FY22 & H1 FY 22 stood at Rs.46 crores & Rs.92 crores. It achieved a Profit after tax of Rs.0.23 crores & Rs.0.71 crores in Q2FY22 & H1 FY22. Stage III Asset as percentage of Gross Loan Asset stood at 4.73% as on September 30, 2021 as compared to 5.94% as of June 30, 2021 and net of Stage 3 ECL provisions stood at 2.77%.

M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC and a Subsidiary Company where Muthoot Finance holds 70.01% stake. Loan portfolio for H1FY22 increased to Rs.3,354 crores as against Rs.2,687 crores last year, an increase of 25% YoY. Total revenue for Q2 FY22 & H1 FY 22 stood at Rs.150 crores & Rs.302 crores. It achieved a Profit after tax of Rs.2 crores & Rs.4 crores in Q2FY22 & H1 FY 22. Stage III Asset as percentage of Gross Loan Asset decreased to 3.61% as of September 30, 2021 as compared to 3.67% as of June 30, 2021 and net of Stage 3 ECL provisions stood at 1.02%.

Muthoot Insurance Brokers Pvt Limited (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs. 98 crores & Rs.159crores in Q2FY22 & H1 FY22 . Total revenue for Q2 FY22 & H1 FY 22 stood at Rs.10 crores & Rs.17 crores. It achieved a Profit after tax of Rs.5crores & Rs.9 crores in Q2FY22 & H1 FY 22.

Asia Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio grew to LKR 1,457 crores as against LKR 1,298 crores last year, an increase of 12% YoY. Total revenue for Q2 FY22 &  H1  FY22 stood at LKR 75 crores & LKR 143 crores. It achieved a Profit after tax of LKR 2 crores & LKR 3 crores in Q2FY22 & H1 FY 22.

Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for Cars, Two wheelers, Commercial Vehicles and Equipments. Loan portfolio stood at Rs.282 crores for the half year ended FY 2022. Total revenue for Q2 FY22 & H1 FY 22 stood at Rs.13 crores & Rs.24 crores. It achieved a Profit after tax of Rs.0.92 crores & Rs.0.80 crores in Q2FY22 & H1 FY 22. It’s Stage III Asset on Gross Loan Asset % as on September 30, 2021 stood at 16.95% and net of Stage 3 ECL provisions stood at 12.89%.

Other Highlights:

Innovative Digital Products:

The company has recently launched customer centric AI-powered virtual assistant Mattu. This AI-powered virtual assistant enables users to apply for loans, address queries  and perform transactions like checking account balance, paying gold loan interest, availing loan top-ups, making part payments, multi-lingual support, voice search capability, and can handle more than 250 frequently asked questions.

Financial Highlights : Standalone results for Muthoot Finance Ltd.

                                                                                                                                                                                                (Rs. in Crore)

 H1 FY22H1 FY21YoY %Q2 FY22Q2 FY21YoY %Q1 FY22QoQ %
Total Income5,5484,97012%2,833258410%2,7154%
Profit Before Tax2,6402,32514%1,340120012%1,3003%
Profit After Tax1,9651,73513%99489411%9712%
Earnings Per Share(Basic) Rs.48.9843.2613%24.7722.3011%24.212%
Loan Assets55,14747,01617%55,14747,01617%52,6145%
Branches4,6194,6070.26%4,6194,6070.26%4,625-0.13%
ParticularsH1 FY22H1 FY21Q2 FY22Q2 FY21Q1 FY22
Return on Average  Loan assets7.35% 8.01%7.38% 8.10%7.38%
Return on Average Equity 24.87%28.02%25.04% 28.05%25.37%
Book Value Per Share (Rs.)407.86328.82407.86328.82383.33

Business Highlights (MFIN):

ParticularH1 FY22H1 FY21Growth (YoY)
Branch Network4,6194,6070.26%
Gold Loan Outstanding (Rs. in Cr)54,68246,23418%
Credit Losses (Rs. in Cr)174325%
% of Credit Losses on Gross Loan Asset Under Management0.03%0.008%289%
Average Gold Loan per Branch (Rs. In Cr) 11.8410.0418%
No. of Loan Accounts (in lakh)887616%
Total Weight of Gold Jewellery pledged (in tonnes)1781639%
Average Loan Ticket Size62,05460,6422%
No. of employees26,13925,9871%

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