Muthoot Finance announces a 14% increase in its consolidated net in Q1
NBFC Muthoot Finance on Friday announced a 14% year-over-year increase in its first quarter consolidated net profit to Rs 979 crore, largely due to the strong performance of the gold lending division. Consolidated loan assets under management increased 25% year-on-year to Rs 58,135 crore from Rs 46,501 crore in the period last year.
The company, which also operates mortgage lending, microfinance and insurance brokerage subsidiaries, said the gold lending division’s net profit increased 16% year-on-year to 971 crore rupees , and that the share of consolidated profit had increased to 99%.
On a sequential basis, total income of the gold lending division decreased 4% to Rs 2,715 crore and net profit decreased 3% quarter on quarter from Rs 996 crore reported in Q4 FY21. Loan assets under management fell by Rs 145 crore qoq as the company decided to slow down activities other than gold.
George Alexander Muthoot, MD, said, “We have made a conscious decision to slow down our non-gold lending business due to the lingering uncertainty and the emergence of uncertain credit behavior. We are redesigning our strategies in terms of non-gold lending activity and we are confident that we will emerge stronger as the environment improves. On the gold lending front, we are targeting 15% growth over the remaining three quarters. “
The gold lending division’s lending assets for the quarter stood at Rs 52,614 crore, up from Rs 41,296 crore during the period last year, a growth of 27%.