Muthoot Finance Q4 Results: Net profit at ₹1,009 crore, records all-time high gold loan growth

Muthoot Finance announced its Q4FY23 results on May 19, reporting a net profit of ₹1,009.2 crore, registering a meagre rise of 0.3 per cent, compared to ₹1,006 crore in the corresponding period last year. The gold financing company’s revenue from operations stood at ₹3,274.8 crore in the January-March quarter, posting a growth of 8.4 per cent, compared to ₹3,021.1 crore in the year-ago period.

The company reported the highest-ever quarterly gold loan disbursement in the fourth quarter of fiscal 2022-23 at Rs. 51,850 crore and an all-time high gold loan growth of ₹5,051 crore during the period. It was hurt by total expenses of ₹1,943.48 crore during the quarter, registering a rise of 15 per cent, compared to ₹1,689.31 crore in the year-ago period.

Muthoot Finance’s consolidated loan assets under management grew 11 per cent year-on-year to Rs.71,497 crore in FY23 as against Rs.64,494 crore in the previous fiscal. 

Analysts on average were expecting a profit of ₹946 crore, according to Refinitiv IBES data. The gold loan industry has continued to benefit from a surge in the metal’s prices amid an increase in safe-haven investment in gold due to market volatility.

Goal loan industry as a whole has seen a surge in their cost of funds amid rising interest rates, driving potential borrowers away. The macroeconomic environment has driven the interest rates on loans higher during the quarter. The company had declared an interim dividend of Rs. 22 per share for the year ended March 31, 2023 on April 6, 2023. 

‘’We expect to grow the loan book by 10-15 per cent during FY 24. We continue to engage in various social projects and spent Rs.96 crore under CSR during FY23. We continue to share the profits generated during the year to our shareholders by paying an interim dividend of 220 per cent ie., Rs.22/- per equity share of Rs.10/- each which involved a total payout of ₹883 crore,” said George Jacob Muthoot, Chairman, Muthoot Group.

On May 19, shares of Muthoot Finance settled 1.45 per cent to ₹1,034.75 apiece on the BSE. 

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