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Muthoot Finance Q4FY23 Financial Results
Kochi, May 19, 2023:
New Products Launched
Small Business Loans
Small businesses are the backbone of the Indian economy, accounting for over 90% of all businesses in the country. Access to credit is essential for the growth of small businesses in India, however, small businesses often face challenges in accessing credit, due to a lack of collateral and a lack of credit history. This can make it difficult for small businesses to grow and expand.
MFIN has launched Small Business Loans to address prevailing gap of credit access to MSME segment with unsecured loan ticket size upto ₹10 lakhs. The new SBU envisages to leverage the large branch network and customer base of MFIN to cross sell SBL. SBL will be completely on digital platform aiming for best TAT and one of the best customer experiences. Our operations have commenced in all the major metros and we plan to expand to all tier 2 and tier 3 locations in phase 2.
As part of our initiatives to leverage the existing customer base and to position ourselves as a one-stop financial service provider, we are now offering a pre- approved personal loan (Micro PL) to eligible customers. The maximum loan amount is upto ₹ 1 Lakh and the entire loan journey is digital. The launch of this product has expanded our product range, increased our customer-engagement process and can now cater to their diverse financial needs.
Key Subsidiaries –“Growth now revived”
- Muthoot Homefin disbursements jumped growing at 106% YOY from Rs.84 crores in FY22 to Rs.173 crores in FY23.
- Significant jump of 153% in disbursements during Q4 FY23 (Rs.84 crores) when compared to (Rs.33 crores) in Q3 FY23.
- We plan to grow disbursement by 400% in FY 24 as per compared to FY23.
- We plan to expand our branch network by opening 26 new branches across states in FY24.
- Focus on strengthening our distribution channel i.e DSA & Connectors empanelment PAN INDIA.
- Our Sales Manpower count as on today stands at 230 employees which is 50 % increase from FY22 end. And we plan to take this count up-to 600 by Q3 FY24 end.
- Vehicle loan disbursement in Q4 FY 23: 24 crores as against disbursements in 9M FY23 of Rs.20 crores
- Company crossed Rs.6192 crores Loan AUM as of March 2023 , Net worth Crossed Rs.1,000 crores and Total Revenue crossed Rs.1,000 crores, YoY growth of 42%
- Collection efficiency remaining 99% for regular accounts.
- Profit after Tax for the Company reported at Rs.130 crores , YoY Growth of 189%
Corporate Social Responsibility
As a socially responsible company, MFIN fulfilled its Corporate Social Responsibility commitment with an over spent of 101% during FY23. MFIN has spent a total of Rs. 96 crores, which is Rs. 69 lakhs in excess of its statutory budget of FY23. The company has allocated more than 100 crores for FY 24 with an emphasis on the areas of Environment, Health, and Education in order to alleviate poverty and uplift the financially deprived section of the community.
Other Key Highlights:
- Muthoot Finance certified as “India’s Most Trusted Financial Services Brand” for 7th year in a row by TRA’s Brand Trust Report 2023.
- Muthoot Finance certified as a Great Place to Work by Great Place to Work Institute for 2nd year in a row in Dec’22.
- Opened 67 new branches in Q4FY23
- Interim dividend for FY 23 of 220% ie., Rs.22/- per Equity Share of Rs.10/- each involving a payout of Rs.883crores.
- Raised Rs. 250+ crores through the 30th Public Issue of Secured Redeemable Non-Convertible Debentures.
- Extended its National Pension Scheme offering to domestic and NRI customers through iMuthoot Application.
- Engaged Smt Madhuri Dixit as our additional Brand Ambassador.
- Launched a new marketing campaign: ‘Kholiye Khushiyon Ki Tijori!’.
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 year ended March 31, 2023.
Consolidated Results of Muthoot Finance Ltd
Muthoot Finance Ltd Consolidated Loan Assets Under Management grew 11% YoY to Rs.71,497 crores in FY23 as against Rs.64,494 crores last year. During the quarter, Consolidated Loan Assets Under Management increased by 10%. Consolidated Profit after tax increased by 8% QoQ to Rs.1,009 crores as against Rs.934 crores last quarter.
(Rs. in crores)
|Financial Performance||Q4FY23||Q3FY23||QoQ %||Q4FY22||YoY %||FY23||FY22||YoY %|
|Group Branch Network||5,838||5,810||0.48%||5,579||5%||5,838||5,579||5%|
|Consolidated Gross Loan Assets of the Group||71,497||65,085||10%||64,494||11%||71,497||64,494||11%|
|Consolidated Profit of the Group||1,009||934||8%||1,006||0.30%||3,670||4,031||-9%|
|Contribution in the Consolidated Gross Loan Assets of the Group|
|Muthoot Finance Ltd||62,950||57,571||9%||58,005||9%||62,950||58,005||9%|
|Contribution in the Consolidated Profit of the Group|
|Muthoot Finance Ltd||900||900||0%||960||-6%||3,467||3,949||-12%|
Commenting on the company’s performance, Mr. George Jacob Muthoot, Chairman, Muthoot Group said, “We achieved highest ever consolidated loan assets growth in any Q4 of Rs. 5,479 crores. Consolidated Profit after tax for Q4 stood at Rs.1,009 crores. Our vision is to remain leader in gold loan business and at the same time cater to large customer base with various loan products to meet their varied requirements. In this process, we expect to grow the loan book by 10-15% during FY 24. We continue to engage in various social projects and has spent Rs.96crores under CSR during FY23. We continue to share the profits generated during the year to our shareholders by paying an interim dividend of 220% ie., Rs.22/- per Equity Share of Rs.10/- each which involved a total payout of Rs.883crs.”
Mr. George Alexander Muthoot, Managing Director said, “The Gold Loan assets growth during Q4 FY23 of Rs.5,479 crores was the highest ever in any Q4. The disbursements also stood historic high in any Q4 at Rs.51,850 crores. Profit after tax remained steady for the quarter at Rs.903 crores. Increase in Stage 3 assets is purely an accommodation given to customers for few more months on the back of higher collateral value and we do not envisage any loss on account of the extended time. We have entered into new lending products like small business loans as well as micro personal loans. We intend to achieve calibrated growth in these new products during FY 24. We also see revival in disbursements in subsidiaries. Microfinance achieved a YoY loan growth of Rs.1,827crores. Housing Finance business achieved a QoQ loan growth of Rs.28 crores Vehicle finance business achieved a disbursement of Rs.24 crores in Q4 FY23 as against Rs.20crores during 9M FY23.
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 net profit of Rs. 3,474 crores in FY23 as against Rs. 3,954 crores in FY22. The net profit stood at Rs. 903 crores in Q4 FY23 as against Rs.960 crores in Q4FY22. Loan Assets stood at Rs. 63,210 crores as compared to Rs.58,053 crores last year, registering a growth of 9% YoY. Gold Loan Assets stood at Rs. 61,875 crores as compared to Rs.57,531 crores last year, registering a growth of 8% YoY. During Q4 FY23, Loan Assets grew by Rs.5,479 crores, 9% QoQ.
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, Loan AUM stood at Rs. 1,438 crores as against Rs. 1,470 crores last year. Total revenue for FY23 stood at Rs. 155 crores. Profit after tax increased to Rs.10 crores in FY23 as against Rs. 8 crores, an increase 25% YoY. Stage III Asset as percentage of Net Loan Asset stood at 4.01% as on March 31, 2023 as compared to 2.93% as of March 31, 2022.
M/s. Belstar Microfinance Limited (BML), is an RBI registered micro finance NBFC and a subsidiary company where Muthoot Finance holds 56.97% stake. Loan portfolio for FY23 stood at Rs. 6,193 crores, as against Rs.4,366 crores in FY22, an increase of 42% YoY. Profit after tax increased to Rs. 130 crores in FY23, as against Rs. 45 crores last year, up 189% YoY. Stage III Asset as percentage of Net Loan Asset reduced to 2.43% as of March 31, 2023 as compared to 5.79% as of March 31, 2022.
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. 651 crores in FY23 as against Rs. 479 crores last year. Profit after Tax increased to Rs. 46 crores in FY23, as against Rs. 28 crores last year.
Asia Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot Finance holds 72.92% stake. Loan portfolio grew to LKR 2,120 crores during FY23, as against LKR 1,735 crores last year, an increase of 22% YoY. Total revenue for FY23 rose to LKR 601 crores, as against LKR 318 crores during last year. Profit after tax increased to LKR 30 crores in FY23, as against profit of LKR 12 crores 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 equipments. Loan portfolio for FY23 increased to Rs. 387 crores, as against Rs.207 crores last year. Total revenue for FY23 grew by 24% to Rs.56 crores, as against Rs.45 crores during last year. Profit after Tax increased to Rs.0.24 crores in FY23 from a loss of Rs. 7 crores last year.
Financial Highlights (MFIN): Standalone results for Muthoot Finance Ltd.
(Rs. in Crores)
|Particulars||Q4FY23||Q3FY23||QoQ %||Q4FY22||YoY %||FY23||FY22||YoY %|
|Profit Before Tax||1,216||1,207||1%||1,292||-6%||4,666||5,309||-12%|
|Profit After Tax||903||902||0.11%||960||-6%||3474||3954||-12%|
|Earnings Per Share (Basic) Rs.||22.49||22.46||0.13%||23.93||-6%||86.54||98.55||-12%|
|Return on Average Loan assets||5.97%||6.27%||6.81%||5.93%||7.24%|
|Return on Average Equity||17.53%||18.32%||21.48%||17.63%||23.55%|
|Book Value Per Share (Rs.)||524.56||501.59||456.98||524.56||456.98|
|Capital Adequacy Ratio||31.77||33.29||29.97||31.77||29.97|
|Share Capital & Reserves (Rs. in Cr)||21,062||20,139||18,345||21,062||18,345|
Business Highlights (MFIN):
|Gold Loan Outstanding (Rs. in Cr)||61,875||57,531||8%|
|Credit Losses (Rs. in Cr)||16.92||28.94||-42%|
|% of Credit Losses on Gross Loan Asset Under Management||0.03%||0.05%||-40%|
|Average Gold Loan per Branch (Rs. in Cr)||13.06||12.46||5%|
|No. of Loan Accounts (in lakh)||81||84||-4%|
|Total Weight of Gold Jewellery pledged (in tonnes)||180||187||-4%|
|Average Loan Ticket Size||75,940||61,080||24%|
|No. of employees||27,273||26,716||7%|