Muthoot Finance Shares Jump Nearly 8% on Strong Q4 Data

Shares of Muthoot Finance rose more than 6% as the company hit a record high for gold loan growth in the fourth quarter.

Shares of Muthoot Finance Ltd rose 8% on Monday on the back of solid fourth-quarter data. The stock was trading 7.94% higher at Rs 1,117 on the NSE at 12:32 pm.

The non-bank gold loan provider posted a net profit of Rs 3,474 crore in FY23 compared to Rs 3,954 crore in FY22. Its net profit in the fourth quarter was Rs 903 crore, compared to Rs 960 crore in the fourth quarter of FY22.

Loan assets stood at Rs 63,210 crore against Rs 58,053 crore last year, an increase of 9%. Gold loan assets jumped 8% to Rs 61,875 crore from Rs 57,531 crore last year. Loan assets grew by Rs 5,479 crore in Q4FY23.

Consolidated loan AUM in FY23 rose 11% YoY to Rs 71,497 crore from Rs 64,494 crore last year. During the quarter, consolidated loan assets under management increased by 10%. Consolidated profit after tax rose 8% to Rs 1,009 crore from Rs 934 crore in the preceding quarter.

“Gold loan assets grew at Rs 5,479 crore in Q4FY23, the highest Q4 ever recorded. Disbursements also hit a record high of Rs 51,850 crore. Profit after tax remained stable at Rs 903 crore for the quarter Rs. The addition of Phase 3 assets is purely to provide customers with accommodation for several months on the back of higher collateral values ​​and we do not expect any loss from the extended period,” said George Alexander Muthoot, Managing Director.

“We have launched new loan products such as small business loans and small personal loans,” he added.

“We intend to achieve calibrated growth in these new products in FY24. We are also seeing a recovery in subsidiary spending. Microfinance achieved loan growth of Rs 1,827 crore. The housing finance business achieved loan growth of Rs 28 crore. Vehicle finance business achieved a disbursement of Rs 24 crore in Q4FY23 compared to Rs 20 crore for nine months of FY23.”

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