Muthoot Microfin rose 4% to Rs 179.63 on 8 Oct after Q2 loan assets grew 22%, though shares later pared gains.

Muthoot Microfin Limited told exchanges that its assets under management, or the total loans it manages, stood at Rs 15,323 crore on 30 September.

That is 22% higher than a year earlier. The figures are provisional and unaudited. The company lent Rs 2,900 crore in the quarter.

That is 28% more than a year ago and 10% more than in the June quarter. Borrowing got cheaper.

Its cost of funds fell to 9.93% from 10.13%, and the company said it is the first time the rate has dipped below 10%.

It raised Rs 3,213 crore in the quarter and had Rs 1,701 crore in liquidity at the end of September.

Customers are paying back well. Collection efficiency, the share of dues actually collected, rose to 98.11%, up 477 basis points from a year ago.

A basis point is one-hundredth of a percentage point. The loan mix is changing too. Group loans to women now form 69% of the book, down from 83% in March.

The rest is individual loans, including Rs 4,164 crore to small businesses, where the company says delinquency is near zero.

Gold loans are a new line. Rs 453 crore was disbursed under a referral and co-lending deal with its parent, Muthoot Fincorp.

Digital payments are catching on. They made up 47% of collections in the quarter, against 25% a year ago.

The company has 1,675 branches, 32 lakh active customers and 22 lakh downloads of its Mahila Mitra app.

Sources reported that net profit for the June quarter stood at Rs 81.33 crore, against Rs 6.18 crore a year earlier.

At 12:46 pm, it’s trading at Rs 169.64 on NSE, down Rs 3.27 or 1.89% from the previous close of Rs 172.91.

The stock opened at Rs 179 and touched a low of Rs 168. It is down 1.66% so far this year and well below its 52-week high of Rs 262.77, with a market value of around Rs 2,892 crore.

Ready to invest like a pro? Tradz by EquityPandit app equips you with 100+ Free tools and knowledge you need to succeed. Download the Tradz by EquityPandit app and gain access to daily stock lists and insightful market analysis and much more!