Muthoot Finance jumps up over 9%

Muthoot Finance is the top gainer on the BSE currently, rising over 9% to Rs.435.85. Volumes have jumped up almost 14 times.

The company announced its Q1FY19 numbers yesterday and they were pretty good. The largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 43%, at Rs. 492crs for Q1FY19 as against Rs.345crs in the previous year.

Loan Assets stood at Rs. 30997crs as at June 30, 2018 as against Rs.27857crs as at June 30 ,2017, Y-o-Y growth of 11%. During the quarter , Loan Assets increased by 6% of Rs. 1855crs.

Its total revenue stood at Rs.1632 crore,  up 18.5% (YoY). The company has 600 branches in Kerala, of which three were impacted by the floods though the company is not expecting major effect on its earnings from the disaster. Its provisions were down 79% at Rs.2.7 crore.

The company, in a bid to increase its non-gold portfolio, plans to start its mutual funds business and vehicle finance business during this fiscal year.  Currently, 90% of its portfolio is gold loan and balance comes from housing finance, microfinance, and the Sri Lankan subsidiary. The plan is to bring down the gold loan to 85% by end of FY19 and to 80% by FY20.

The company has received the Board’s approval   to raise around Rs.5000 crore by way of private placements of redeemable non-convertible debentures.