The consolidated loan assets under management (AUM) of the gold loan company Muthoot Finance grew 28% Y-o-Y to Rs. 98,048 crores in Q1 FY25 as against Rs. 76,799 crores last year. During the quarter, consolidated loan AUM increased by 10% of Rs. 8,969 crores. The consolidated profit after tax (PAT) increased by 14% YoY to Rs. 1,196 crores as against Rs. 1045 crores last year.
The NBFC had raised USD 650 million through the global issuance of bonds in the Q1 of FY25 and had opened 218 new branches in the Q1 of FY25.
George Jacob Muthoot, chairman of Muthoot Finance said, “Muthoot Finance has begun FY25 with a strong quarter with our consolidated loan AUM reaching highest ever level of Rs. 98,048 crores and standalone loan AUM reaching highest ever level of Rs. 84,324 crores.”
“Our subsidiaries have continued the strong growth momentum, contributing significantly to our consolidated loan assets which now stand at 15%. consolidated PAT also grew by 14% YoY to Rs. 1,196 crores. The contribution of our subsidiaries in consolidated PAT stand at 10% in Q1 FY25, reflecting our focus on emerging as a diversified financial services group. 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 digitization across 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,” the chairman added.Commenting on the company’s performance, Mr George Alexander Muthoot, Managing Director, said, “We had an impressive start to the year with our Standalone Loan Assets Under Management reaching a historic high of Rs.84,324 crores, driven by robust 23% YoY growth in gold loan of Rs.14,883 crores and an 11% QoQ increase of Rs. 8,043 crores. 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 was the highest ever in any quarter amounting to Rs.73,648 crores. Further, the gold loan disbursements to new customers was also the highest ever in any quarter amounting to Rs .5,651 crores. As a result, our Standalone Profit after Tax for Q1 FY25 grew by 11% to reach Rs. 1,079 crores. As we continue our efforts to diversify our loan book, our non-gold segments including microfinance loans, personal loans, and home loans have also shown significant progress, contributing to a well-rounded financial performance. The housing finance arm achieved disbursements of Rs.221 crores in Q1 FY25 as against Rs.109 crores in Q1 FY24, a YoY increase of 102%. Our microfinance arm saw its Loan AUM for Q1 FY25 increasing to Rs.9,952 crores as against Rs.7,008 crores in Q1 FY24, an increase of 42% YoY.”“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 FM to boost the job creation and employability for women and young talent and 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,” the managing director added.
Muthoot Finance Ltd (MFIN), India’s largest gold financing company in terms of loan portfolio, registered profit after tax of Rs. 1,079 crores in Q1 FY25 as against Rs. 975 crores in Q1 FY24, an increase of 11 % YoY. Loan AUM stood at Rs. 84,324 crores in Q1 FY25 as compared to Rs. 67,639 crores in Q1 FY24, registering a growth of 25% YoY. During the quarter, Loan assets increased by Rs. 8,497 crores registering a growth of 11%. Gold Loan assets increased by Rs. 8,043 crores registering a growth of 11%.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan AUM stood at Rs.2,199 crores in Q1 FY25 as against Rs.1,501 crores in Q1 FY24, an increase of 47% YoY. The loan disbursement for Q1 FY25 stood at Rs.221 crores as against Rs.109 crores in Q1 FY24, a YoY increase of 103%. Total revenue for Q1 FY25 stood at Rs.73 crores as against Rs.44 crores in Q1 FY24, registering a growth of 66% YoY. Profit after tax stood at Rs. 8 crores in Q1 FY25 as against Rs.5 crores in Q1 FY24, an increase of 60% YoY. Stage III assets stood at 1.75% as of June 30, 2024, as compared to 1.88% last year.
Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC, and a subsidiary company where Muthoot Finance holds 66.13% stake. Loan AUM for Q1 FY25 increased to Rs.9,952 crores as against Rs.7,008 crores in Q1 FY24, an increase of 42% YoY. Profit after tax stood at Rs.90 crores in Q1 FY25, as against Rs.52 crores in Q1 FY24, an increase of 73% YoY. Stage III Asset stood at 2.35% as of June 30, 2024, compared to 1.82% last year.
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.148 crores in Q1 FY25. Total revenue for Q1 FY25 stood at Rs.44 crores. It achieved a Profit after tax of Rs.16 crores in Q1 FY25.
Asia Asset Finance PLC (AAF), is a listed subsidiary based in Sri Lanka where Muthoot Finance holds a 72.92% stake. Loan portfolio stood at LKR 2,335 crores in Q1 FY25, as against LKR 2,010 in the same quarter last year. Total revenue for Q1 FY25 stood at LKR 152 crores as against LKR 172 crores in Q1 FY24. It achieved a Profit after tax of LKR 12 crores in Q1 FY25, as against a profit of LKR 6 crores in the same quarter last year.
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 gold loans and loans for commercial vehicles and equipment. Loan portfolio for Q1 FY25 stood at Rs.1,657 crores, as against Rs. 496 crores in Q1 FY24, an increase of 234 % YoY. During the quarter, Loan AUM increased by Rs. 534 crores, an increase of 48% QoQ. Total revenue for Q1 FY25 increased to Rs. 60 crores as against Rs. 21 crores in Q1 FY24, an increase of 185% YoY.
