Muthoot Finance posts highest-ever net profit of Rs 1,196 crore in Q1
Kochi-based Muthoot Finance Ltd has posted its highest-ever consolidated net profit of Rs 1,196 crore during the first quarter of FY25, up 14 per cent compared to Rs 1,045 crore during the April to June quarter of FY24.
During the quarter, the company saw its highest-ever consolidated loan assets under management (AUM) of Rs 98,048 crore (up 28 per cent) and highest-ever gold loan AUM of Rs 14,883 crore, up by 23 per cent compared to the same quarter last fiscal. In the same quarter last fiscal, the company’s consolidated loan AUM was Rs 76,799 crore.
“Muthoot Finance has begun FY25 with a strong quarter, with our consolidated loan assets under management and standalone loan assets under management reaching their highest-ever level. Our subsidiaries have continued the strong growth momentum, contributing significantly to our consolidated loan assets, which now stand at 15 per cent,” said George Jacob Muthoot, chairman, Muthoot Finance. “In the backdrop of India being on a positive growth trajectory, evolving as an attractive global investment destination, the financial sector is set to play a crucial role in this journey. With sweeping digitisation across the financial sector, we will continue to intensify our digital efforts to improve access to credit and include customers across the social pyramid. As we continue to retain our leadership position in the gold loan industry, our strategic emphasis on digital initiatives and the expansion of our non-gold loan portfolio positions us well for sustained success in FY25 and beyond,” he added.
“This growth is a testament to our three-pronged strategy to focus on disbursements, operational efficiency, and maintaining healthy margins. In this quarter, gold loan disbursements were the highest ever in any quarter, amounting to Rs 73,648 crore. Further, gold loan disbursements to new customers were also the highest ever in any quarter, amounting to Rs 5,651 crore,” said George Alexander Muthoot, managing director, Muthoot Finance.
“Additionally, the Union Budget’s emphasis on MSMEs, women entrepreneurs, and the agricultural sector is particularly encouraging for us. The credit guarantee scheme will significantly enhance credit access for MSMEs, aligning perfectly with our commitment to supporting entrepreneurs with our small business loans. We are also in alignment with the initiative announced by the finance minister to boost job creation and employability for women and young talent, and we aim to offer valuable contributions to India Inc’s growth. This outlook, coupled with our strategic initiatives, positions us well to achieve our growth targets for FY25,” he added.
First Published: Aug 13 2024 | 5:37 PM IST