Muthoot Finance Ltd, the gold financing company, has registered a growth of 125 per cent in its net profit at Rs 190 crore for the quarter ended June 30 compared with Rs 85crore of the previous fiscal.
The total income for the quarter stood at Rs 920 crore compared with Rs 383 crore in the first quarter, a growth of 140 per cent. The profit after tax was at Rs 290 crore, a growth of 128 per cent.
Mr M.G. George, Chairman, Muthoot Finance Ltd, said at a press meet that the retail loan assets under management increased by Rs 2,080 crore to Rs 17,949 crore. The interest income to average retail loans AUM stood at 21.63 per cent and interest expense to average retail loans AUM stood at 10.63 per cent.
“We are glad that in spite of significant increase in borrowing cost, we have been able to maintain our return on assets and manage good growth. We continue to remain focused on India’s vast rural and semi-urban areas to deliver the best in terms of financial inclusion whether it be on customer service or in loan conditions,” he said.
Regarding the spatial spread of the company, he said the presence in urban locations of North, West and eastern geographies where the company had undertaken major concept selling years ago is paying off now.
Mr George Alexander Muthoot, Managing Director, said the company plans for a public issue of non-convertible debenture of Rs 1,000 crore in a couple of weeks to augment its working capital. The company will apply for permission with SEBI today and the coupon rate will be decided in a week’s time, he said.