Home Business Muthoot Finance posts 14% growth in net profit at ₹984 cr in Q2FY24

Muthoot Finance posts 14% growth in net profit at ₹984 cr in Q2FY24

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Muthoot Finance posts 14% growth in net profit at ₹984 cr in Q2FY24

The standalone net profit of gold loan lender Muthoot Finance has achieved a 14 per cent growth at ₹984 crore in Q2 of FY24 compared to ₹865 crore in the corresponding period of the previous fiscal. Consolidated PAT of the standalone entity during the period stood at ₹1,095 crore against ₹902 crore.

The consolidated loan assets under management grew 24 per cent y-o-y to ₹79,493 crore as at H1 FY24 against ₹64,356 crore last year. During the quarter, consolidated loan assets under management increased by ₹2,694 crore, an increase of 4 per cent.

  • Also read: Muthoot Finance post 22% rise in net profit at ₹975 crore in Q1 FY24 

George Jacob Muthoot, Chairman, The Muthoot Group, said the increased profits came from gold loan, microfinance, housing finance as well as insurance broking businesses. “We are focusing on maintaining strong leadership in gold loan business and a gradual calibrated growth in non-gold loan business comprising of microfinance, housing finance, vehicle loan, personal loans, business loans, small business loans, loan against property and corporate loans. Over the next five years, we are keen on increasing the proportion of non-gold business to 18 per cent from present 13 per cent”.  

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George Alexander Muthoot, Managing Director, said, “Our gold loan AUM demonstrated strong growth, led by strong demand trends in both urban and semi-urban markets. We have continued our strategic emphasis on disbursements, operational efficiency, and margins, which has resulted in our profits growing 18 per cent at ₹1,966 crore in H1 of FY24. We strongly believe that the resilience of the Indian economy, its positive outlook coupled with optimistic consumer and business sentiments, will keep the gold loan demand strong, and we retain our guidance of growing our gold loan book by 10-15 per cent in FY24”.

Further, our non-gold loan businesses in subsidiaries continue to do well, with disbursements during the first half of the year increasing by 76 per cent to ₹4,294 crore in microfinance business and by 164 per cent at ₹278crore in housing finance business. We retired $-denominated Senior Secured Notes amounting to $550 million, during 1st half of FY24 which carried a high cost. Our investment in digital strategy is paying off well with nearly 39 per cent of our customer transactions now happening via our various digital channels”.