muthoot finance: Muthoot Finance likely to grow its loan book by 10-15% in FY24

Gold loan non-banking finance company (NBFC) Muthoot Finance expects to grow its loan book by 10-15% in FY24 driven by its performance in Q4 of FY23.

The NBFC has registered the highest ever gold loan disbursement of Rs 51,850 crore in the Q4 of FY23. The gold loan growth in Q4 stood at Rs 5,051 crore and interest collection was at Rs 2,677 crore. The NBFC opened 67 new branches in Q4 of FY23.

The consolidated loan AUM stood at Rs. 71,497 crores, up by 10% Q-o-Q and the consolidated Profit after Tax (PAT) stood at Rs. 1,009 crores for Q4FY23, up by 8% Q-o-Q. The standalone loan AUM stood at Rs. 63,210 crores, up by 9% Q-o-Q and the standalone PAT stood at Rs. 903 crores for Q4FY23.

Commenting on the company’s performance, Mr. George Jacob Muthoot, chairman, Muthoot Group said, “Our vision is to remain leader in gold loan business and at the same time cater to large customer base with various loan products to meet their varied requirements. We continue to share the profits generated during the year to our shareholders by paying an interim dividend of 220% ie., Rs.22/- per Equity Share of Rs.10/- each which involved a total payout of Rs.883crs.”

Mr. George Alexander Muthoot, managing director said, “The Gold Loan assets growth during Q4 FY23 of Rs.5,479 crores was the highest ever in any Q4. The disbursements also stood historic high in any Q4 at Rs.51,850 crores. Profit after tax remained steady for the quarter at Rs.903 crores. Increase in Stage 3 assets is purely an accommodation given to customers for few more months on the back of higher collateral value and we do not envisage any loss on account of the extended time. We have entered into new lending products like small business loans as well as micro personal loans. We intend to achieve calibrated growth in these new products during FY 24. We also see revival in disbursements in subsidiaries.”

He added “Microfinance achieved a YoY loan growth of Rs.1,827crores. Housing Finance business achieved a QoQ loan growth of Rs.28 crores Vehicle finance business achieved a disbursement of Rs.24 crores in Q4 FY23 as against Rs.20crores during 9M FY23.”

Muthoot Homefin disbursements jumped growing at 106% YOY from Rs.84 crores in FY22 to Rs.173 crores in FY23.“We plan to grow disbursement by 400% in FY 24 as per compared to FY23.· We plan to expand our branch network by opening 26 new branches across states in FY24. Our sales manpower count as on today stands at 230 employees which is 50 % increase from FY22 end. And we plan to take this count up-to 600 by Q3 FY24 end,” the MD said.

Belstar Microfinance, another subsidiary of Muthoot Group, has crossed Rs.6192 crores loan AUM as of March 2023 , Net worth crossed Rs.1,000 crores and total revenue crossed Rs.1,000 crores, YoY growth of 42%.