New Delhi, Jun 17 (PTI) Muthoot Finance Ltd (MFIN) on Wednesday reported a 52.4 per cent jump in consolidated net profit at Rs 835.78 crore in the last quarter of the fiscal ended March 2020 due to higher demand for gold loans.
The company had posted a net profit of Rs 548.56 crore during the corresponding January-March quarter of fiscal ended March 2019.
'Performance for the last year has been good for the company because of gold loan business...all through the year it was nice. Other than last 15 days of March (due to lockdown)...we were able to do good business.
'Overall, the demand was good and that is the key reason for our good performance,' George Alexander Muthoot, Managing Director of MFIN, told PTI after the company declared its results.
MFIN's total income during March quarter of FY20 rose to Rs 2,633.58 crore from Rs 2,088.84 crore in the year-ago period, MFIN said in a regulatory filing.
Of this, the interest income was Rs 2,562.96 crore, up from Rs 2,017.81 crore a year ago.
For fiscal year 2019-20, the company reported a 51 per cent jump in consolidated net profit at Rs 3,168.68 crore as against Rs 2,102.96 crore in 2018-19.
Income for the year increased to Rs 9,683.98 crore from Rs 7,594.43 crore in the previous fiscal.
The company's board of directors declared an interim dividend of Rs 15 per share for 2019-20.
The company was able to open majority of its branches from April 20, and as of now all branches are functioning normally, the company's managing director said on the coronavirus-induced lockdown.
'Disbursements and collections have normalized and we are expecting increase in disbursement once movement of people increases and economic activity level picks up,' he said.
The company continues to maintain adequate liquidity to meet all repayment obligations, he added.
'We are looking to grow gold loan business by about 15 per cent for the whole year (2020-21). We have been able to raise fresh commercial paper, NCDs, bank limits, among others,' Muthoot said.
The company's consolidated loan assets under management increased by 22 per cent to Rs 46,871 crore in 2019-20.
MFIN makes majority of its revenue (90 per cent) from gold loans, while it also has some presence in vehicle finance, affordable home finance and micro loan segment through its various arms.
It is also engaged in broking business and has a gold loan subsidiary in Sri Lanka.
MFIN said there has been no significant impact on the operations and financial position of the company on account of the outbreak of the COVID-I9 pandemic and the consequential lockdown restrictions imposed by the government.
'Based on an assessment of the situation, the company considers that the impairment loss provision...is adequate to cover any future uncertainties,' MFIN said.
Shares of MFIN closed 2.08 per cent higher at Rs 1,000.20 apiece on the BSE on Wednesday. PTI KPM RVK