Income from operations fell 1% to Rs 1650.11 crore in the quarter ended September 2018. Interest expense increased 9% to Rs 535.35 crore, while other expenses declined 14% to Rs 359.46 crore as provisions dipped 98% to Rs 3 crore. Ensuing Gross profit improved 1% to Rs 755.3 crore in Q2FY2019 over Q2FY2018.
Depreciation declined to Rs 10.02 crore in Q2FY2019 from Rs 10.58 crore in Q2FY2018. PBT increased 1% to Rs 745.28 crore. Effective tax rate dipped to 35.1% in Q2FY2019 from 39.7% in Q2FY2018. The net profit of the company increased 9% to Rs 483.83 crore in the quarter ended September 2018.
Business performance
Gross retail loan AUM of the company increased 17% yoy to Rs 32319 crore at end September 2018. Non-gold loans moved up 254% to Rs 281 crore of AUM at end September 2018.
The net Interest margin (NIM) of the company, on calculated basis, eased slightly by -309 bps on sequential basis to 13.57% in Q2FY2019.
The Gross stage 3 assets of the company declined sharply to 1.91% end September 2018 from 2.85% end June 2018. The provisions as a percentage of gross assets were healthy at 1.79% end September 2018.
CRAR ratio was at strong level of 25.92% at end September 2018.
Branch network of the company increased to 4370 branches at end September 2018. Employee count increased to 23888 at end September 2018 from 23623 at end June 2018.
Book value of the company stood at Rs 219.7 per share at end September 2018 up from Rs 207.6 per share at end June 2018. Adjusted book value stood at Rs 218.7 per share at end September 2018 up from Rs 200.3 per share at end June 2018.
Subsidiaries
The consolidated loan book of the company increased 21% to Rs 35956 crore end September 2018. The loan book of subsidiaries jumped 79% to Rs 3637 crore end September 2018, while its share in consolidated loan book stood at 10%.
Muthoot Homefin (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs 1775 crore as against previous year of Rs 830 crore, a YoY increase of 114%. During the quarter, loan portfolio increased by Rs 154 crore, QoQ growth of 9.50%. Total revenue for Q2FY19 & H1 FY 19 stood at Rs 56 crore & 106 crore as against previous year total revenue of Rs 26 crore & Rs 45 crore. It achieved a net profit of Rs 10 crore & Rs 21 crore in Q2 FY19 & H1 FY19 as against previous year profit of Rs 5 crore & Rs 8 crore. Its Gross and Net NPA stood at 0.78% and 0.63% as on 30 September 2018.
Belstar Investment and Finance (BIFPL), an RBI registered micro finance NBFC and Subsidiary Company where Muthoot Finance holds 65.89% stake, grew its loan portfolio to Rs 1381 crore as against last year of Rs 797 crore, a YoY increase of 73%. During the quarter, loan portfolio increased by Rs 145 crore, QoQ growth of 12%. It achieved a profit after tax of Rs 17 crore & Rs 31 crore during Q2 FY19 & H1 FY19 as against previous year profit after tax of Rs 2 crore & Rs 4 crore. Its Gross and Net NPA stood at 0.88% and 0.44% as on 30 September 2018.
Muthoot Insurance Brokers (MIBPL), an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a First year premium collection amounting to Rs 67 crore & Rs 116 crore during Q2 FY19 & H1 FY19 as against Rs 22 crore & Rs 37 crore in the previous year. It generated a Profit after Tax of Rs 4 crore & Rs 6 crore during Q2 FY19 & H1 FY19 as against Rs 2 crore & Rs 3 crore in the previous year.
The Sri Lankan subsidiary - Asia Asset Finance PLC. (AAF) where Muthoot Finance holds 60% stake, increased its loan portfolio to LKR 1124 crore as against last year of LKR 949 crore, a YoY increase of 18%. During the quarter, loan portfolio increased by LKR 56 crore, QoQ growth of 5%. Total revenue for Q2 FY19 & H1 FY19 stood at LKR 69 crore & LKR 138 as against previous year total revenue of LKR 64 CRORE & LKR 123 crore. It generated a profit after tax of LKR 2 crore & LKR 4 crore during Q2 FY19 & H1 FY 19as against previous year profit after tax of LKR 4 crore & LKR 10 crore.
Half Yearly Financial Performance:
For the year ended September 2018 (FY2018), Muthoot Finance reported 8% rise in Income from operations at Rs 3281.98 crore. Other income jumped 277% to Rs 1.13 crore in FY2018. The total income improved 8% to Rs 3283.11 crore. Interest expense increased 3% to Rs 1036.91 crore, while other expenses fell 1% to Rs 726.78 crore. Ensuing Gross profit rose 17% to Rs 1519.42 crore. Depreciation declined 9% to Rs 19.13 crore. PBT jumped 17% to Rs 1500.29 crore. Effective tax rate stood at 35.0% compared to 38.3%. The final bottomline of the company inched up 23% to Rs 975.39 crore in FY2018.
Muthoot Finance: Financial Results
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