Highest Ever Consolidated Loan Assets Under Management at Rs. 89,079 crore, up by 25% YoY
FinTech BizNews Service
Mumbai, May 30, 2024: Muthoot Finance today announced its Q4FY24 Financial Results. A meeting of the Board of Directors of Muthoot Finance Ltd. was held today to consider and approve the audited standalone and consolidated results for the quarter ended March 31, 2024 and financial year April 1, 2023 – March 31, 2024.
Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets Under Management grew 25% YoY to Rs. 89,079 crores in FY24 as against Rs. 71,497 crores last year. During the quarter, Consolidated Loan Assets Under Management increased by 8%. Consolidated Profit after tax increased by 22% YoY to Rs. 4,468 crores as against Rs. 3,670 crores last year.
Other Key Highlights:
Strong YoY Growth in Loan Assets of Rs. 12,617 crores in FY 2024, up by 20%. Strong YoY Growth in Gold Loan Assets of Rs. 11,003 crores in FY 2024, up by 18%.
● Raised Rs. 480 crores through the 33rd Public Issue of Secured Redeemable Non-Convertible Debentures
● Opened 225 new branches by the Group in Q4 FY24 across regions including Bangalore, Goa, Hyderabad, Chennai, Nizamabad, Warangal, Kakinada amongst others.
● Received multiple industry recognitions including:
a. Muthoot Finance certified as “India’s Most Trusted Financial Services Brand” for 8th year in a row by TRA’s Brand Trust Report 2024
b. Muthoot Finance certified as a Great Places to Work by Great Place to Work Institute for 3rd year in a row
c. Muthoot Finance was bestowed with prestigious “BRICS – CCI Business Excellence Award in Leadership”
d. The Muthoot Group received the prestigious Quantic India Data Analytics and AI Show 2024 Award for Innovation in Predictive Analytics – Lending Finance
e. The Muthoot Group was the runner up of the prestigious Dynamic CISO Excellence Awards, under the category – Innovation in Network Security for the SD WAN implementation in the N.E.W region
f. Muthoot Homefin Limited won the Most Trusted Brand Award for the 2nd consecutive year at the 4th edition of Most Trusted BFSI Brands 2024
g. Belstar Microfinance Limited, has filed a draft red herring prospectus dated May 3, 2024, for a proposed IPO, comprising a fresh issue of equity shares of face value of ₹10 each (“Equity Shares”) for an amount aggregating up to ₹10,000 million, and an offer for sale of Equity Shares for an amount aggregating up to ₹3,000 million by certain of its existing non-promoter shareholders.
Key Subsidiaries – ‘Continued strong growth momentum’
Belstar Microfinance
· Gross Loan AUM at Rs. 10,023 crores in FY 24 vs. Rs. 6,193 crores in FY 23; growth of ~62% YoY
· Disbursements improved to Rs. 9,708 crores in FY 24; growth of 68% YoY
· Increase in Profit After Tax in FY 24 at Rs. 340 crores vs. Rs. 130 crores in FY23; growth of 161% YoY
· Collection Efficiency remaining more than 99% for Regular accounts
· GNPA at 1.82 % in FY24 vs. 2.42% in FY23; NNPA at 0.17% in FY24 vs. 0.65% in FY23
· Opened 247 new branches during FY24.
Muthoot Homefin
· Loan AUM at Rs. 2,035 crores in FY24 vs. Rs. 1,438 crores in FY23; growth of ~42% YoY
· Disbursed loans of Rs. 815 crores in FY24 as compared to Rs. 223 crores in FY23; a growth of ~265% YoY
· Interest income increased at ~32% YoY to Rs. 178 crores in FY24 vs. Rs. 135 crores in FY23
· Profit After Tax stood at Rs. 18 crores in FY24 vs. Rs. 10 crores in FY23; ; growth of ~78% YoY
· GNPA at 1.88 % in FY24 vs. 4.01% in FY23; NNPA at 0.57% in FY24 vs. 1.39% in FY23
Muthoot Money
· Loan AUM at Rs. 1,123 crores in FY24 vs. Rs. 387 crores in FY23; growth of ~190% YoY
· Continued decline in NPA through physical collections witnessed consistently throughout the year. GNPA decreased to 1.44% in FY24 from 3.67% in FY23
· Achieved a profit of Rs. 4.64 crores during FY24 vs. profit of Rs. 0.24 crores in FY23;growth of ~ 1820% YoY
· Opened 321 new branches during FY24
Results
(Rs. in crores)
Financial Performance | Q4 FY24 | Q3 FY24 | QoQ % | Q4 FY23 | YoY % | FY24 | FY23 | YoY % |
Group Branch Network | 6,541 | 6,316 | 4% | 5,838 | 12% | 6,541 | 5838 | 12% |
Consolidated Gross Loan Assets of the Group | 89,079 | 82,773 | 8% | 71,497 | 25% | 89,079 | 71,497 | 25% |
Consolidated Profit of the Group | 1,182 | 1,145 | 3% | 1,009 | 17% | 4,468 | 3,670 | 22% |
Contribution in the Consolidated Gross Loan Assets of the Group | ||||||||
Muthoot Finance Ltd | 75,327 | 70,852 | 6% | 62,950 | 20% | 75,327 | 62,950 | 20% |
Subsidiaries | 13,752 | 11,921 | 15% | 8,547 | 61% | 13,752 | 8,547 | 61% |
Contribution in the Consolidated Profit of the Group | ||||||||
Muthoot Finance Ltd | 1,050 | 1,024 | 3% | 900 | 17% | 4,029 | 3,467 | 16% |
Subsidiaries | 132 | 122 | 9% | 109 | 21% | 439 | 203 | 117% |
Mr. George Jacob Muthoot, Chairman said “We are glad to announce another year of remarkable growth and achievements for the company. Our Consolidated Loan Assets Under Management crossed milestone of Rs. 89,000 crores and Standalone Loan Assets Under Management crossed milestone of Rs.75,000 crores. The Consolidated Loan Assets Under Management increased by 25% YoY, and Standalone Loan Assets Under Management increased by 20%. The contribution of subsidiaries on loan assets increased to 15% from 12% last year, reflecting our strategic diversification efforts. The Consolidated Profit after Tax for FY24 increased by 22% YoY at Rs. 4,468 crores. The contribution of subsidiaries in the Consolidated Profit after tax also increased to 10% from 6% last year underlining the resilience of our diversified business model. With a strong focus on Muthoot Finance’s vision to emerge as a diversified financial services group, FY24 was a year of transformation for us. Apart from consciously pivoting our efforts towards growing our non-gold loan book, we also focused on strengthening our digital strategies for a transformative growth across our product portfolio. Despite the various industry hiccups, we have continued to maintain our position as a leader in the gold loan industry and capitalized on the strong growth opportunities in affordable housing, microfinance, personal loan, small business loan, and vehicle finance. Further robust domestic consumption, growing middle class segment and rising aspirations provide ample opportunities for future growth. We embark FY25 on a positive note and shall continue on our vision to grow the share of non-gold loan subsidiaries to 18%-20% in the next 5 years.”
Mr. George Alexander Muthoot, Managing Director said, "We take immense pride in achieving a loan growth of 20% as against a guidance of 15% in FY24. In Q4 FY24, the Standalone Loan AUM witnessed a historic high of Rs. 75,827 crores, driven by the robust growth in Gold Loan of Rs. 3,657 crores. The Standalone Profit after Tax for FY24 increased by 17% YoY at Rs. 4,050 crores. This year, we achieved the highest ever Gold Loan advance to new customers of Rs. 16,415 crores, reinforcing our position as a trusted partner in the gold loan industry. Complementing our core gold loan business, our non-gold loan offerings continued to gain traction, with our microfinance loans, personal loans, and home loans playing a pivotal role in diversifying our overall loan book. The housing finance arm achieved disbursements of Rs. 815 crores in FY24 as against Rs. 223 crores in FY 23. The micro finance arm also witnessed upward trend, with increased Loan AUM by 62% YoY reaching Rs. 10,023 crores and Profit after Tax by 161% YoY of Rs. 340 crores.
As part of our transformational journey, in FY24, we also focused on boosting our digital business and tapping new tech-savvy millennials and Gen Z customers. Our phygital strategy has yielded positive results with critical infrastructure already in place to move remaining gold and non-gold customers to digital channels who were hitherto transacting in cash. We are confident that the impact of regulatory norm of Rs.20,000 cash disbursal limit on our business and volumes will be limited since it is an industry wide move. In alignment with strict vigilance from regulators on the NBFC industry, we also remain committed to maintaining the highest standards of corporate governance and compliance.”
Standalone Results of Muthoot Finance Ltd and its subsidiaries
Muthoot Finance Ltd (MFIN), India’s largest gold financing company in terms of loan portfolio, registered profit after tax of Rs. 4,050 crores in FY24 as against Rs. 3,474 crores in FY23, an increase of 17% YoY. Profit after tax for Q4 FY24 increased by 17% YoY at Rs. 1,056 crores as against Rs. 903 crores in Q4 FY23. Loan AUM stood at Rs. 75,827 crores in FY24 as compared to Rs. 63,210 crores in FY23, registering a growth of 20% YoY. During FY24, Gold Loan assets increased by Rs. 11,003 crores registering a growth of 18%. During the quarter, Gold Loan assets increased by Rs. 3,657 crores an increase of 5% QoQ.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, loan AUM stood at Rs. 2,035 crores in FY24 as against Rs. 1,438 crores in FY23, an increase of 42% YoY. The loan disbursement for FY24 stood at Rs.815 crores as against Rs.223 crores in FY23, a YoY increase of 265%. Total revenue for Q4 FY24 & FY24 stood at Rs. 72 crores & Rs. 219 crores as against Rs.39 crores & Rs.155 crores in Q4 FY23 & FY23, registering a growth of 85% YoY and 41% YoY respectively. Profit after tax stood at Rs. 18 crores in FY24 as against Rs. 10 crores in FY23, an increase of 78% YoY. Stage III Asset stood at 1.88% as of March 31, 2024 as compared to 4.01% last year.
M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC, and a subsidiary company where Muthoot Finance holds 63.86% stake. Loan AUM for FY24 increased to Rs. 10,023 crores as against Rs. 6,193 crores for FY23, an increase of 62% YoY. The loan disbursement for FY24 stood at Rs. 9,708 crores as against Rs. 5,795 crores in FY23, a YoY increase of 68%. During the FY24, Loan assets increased by Rs. 3,848 crores, an increase of 82 %. During the quarter, Loan AUM increased by Rs. 1,189 crores, an increase of 13% QoQ. Profit after tax stood at Rs. 340 crores in FY24, as against Rs. 130 crores in FY23, up 162% YoY and Rs. 105 crores in Q4 FY24 as against Rs. 82 crores in Q4 FY23, an increase of 28% YoY. Stage III Asset stood at 1.82% as of March 31, 2024 as compared to 2.43% 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. 656 crores in FY24. Total revenue for FY24 stood at Rs. 153 crores. It achieved a Profit after tax of Rs. 42 crores in FY24.
Asia Asset Finance PLC (AAF) is a listed subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio stood at LKR 2,056 crores in FY24. Total revenue for FY24 increased to LKR 660 crores as against LKR 601 crores in FY23, an increase of 10% YoY. It achieved a Profit after tax of LKR 34 crores in FY24.
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 FY24 stood at Rs. 1,123 crores, as against Rs. 387 crores in FY23, an increase of 190% YoY. During the quarter, Loan AUM increased by Rs. 305 crores, an increase of 37% QoQ. Total revenue for FY24 increased to Rs. 126 crores as against Rs. 56 crores in FY23, an increase of 124 % YoY. It achieved a profit after tax of Rs. 5 crores for FY24 as compared to a profit of Rs. 0.24 crores during last year.
