Muthoot Finance post 22% rise in net profit at ₹975 crore in Q1 FY24 

Gold loan lender Muthoot Finance has registered a net profit of ₹975 crore in Q1FY24 against ₹802 crore in Q1FY23, an increase of 22 per cent.

Loan assets stood at ₹67,639crore compared to ₹56,689 crores in the same quarter last year, registering a growth of 19 per cent. During the quarter, loan assets increased by ₹4,429 crore, a growth of 7 per cent.

George Jacob Muthoot, Chairman, said, “Muthoot Finance has continued to deliver a strong performance in Q1 and achieved consolidated loan AUM of ₹76,799 crore. Consolidated profit after tax grew by 27 per cent and stood at ₹1,045 crore. We achieved highest ever consolidated loan assets growth in any Q1 of ₹5,302 crore. Our subsidiaries Muthoot Homefin, and Belstar Microfinance continue to report strong disbursements and as a result the contribution of our subsidiaries to the overall consolidated loan AUM has increased to 12 per cent. Our vision is to remain a leader in gold loan business and at the same time cater to our large customer base with various loan products to meet their varied requirements.”

Optimistic outlook

George Alexander Muthoot, Managing Directorsaid, “A resilient economy, improved demand conditions, make us optimistic of growing our gold loan book by 10-15 per cent in FY24. With continued focus on loan disbursements and recovery efforts, we are confident of maintaining our NIMs around 11 per cent. Our non-gold loan segments continue to witness improved business environment, and our new products- small business loans and micro-personal loans have reported good traction this quarter.”