Muthoot Microfin Ltd has reported a 119.06 per cent increase in net profit for the quarter ended December 31, 2023, at ₹124.57 crore (₹56.86 crore).
The bottomline surge was aided by a 53.07 per cent increase in net interest income for the quarter under review at ₹343.07 crore (₹224.13 crore).
This is the first quarterly results for the company after its recent public listing of shares. It had raised ₹960 crore through IPO. Asked as to what helped boost Q3 bottomline performance, Sadaf Sayeed, CEO, Muthoot Microfin, told businessline that the performance was bolstered by a 38.64 per cent year-on-year increase in gross loan portfolio at ₹11,458.14 crore (₹8,264.59 crore).
Sayeed expressed confidence that this bottomline growth performance seen in Q3 would be sustained in coming quarters.
Asked if Muthoot Microfin would look to raise capital to fund business growth, he replied in the negative. “For next two years we are not looking to raise any capital. Internal accruals and IPO mop up will be enough to meet our business growth requirements ”, he said.
The number of branches have increased to ₹ 1,424 in Q3 this fiscal from 1,088 branches as of same quarter last fiscal.
“The improved NPA figures (NNPA of 0.33 per cent) underscore our commitment to maintaining a healthy loan portfolio. All the key indicators are showing tremendous growth and the macro-economic outlook of the country is favourable to the industry for us to sustain this growth rate”, he said.
Muthoot Microfin is now looking to close the current fiscal of Return of Assets of 4.5, more than double the RoA of 2 per cent last fiscal.
The company’s NIM has reached 12.7 percent. “Our cost of operation has gone down to 6 per cent. Our credit cost has halved to 1.5 percent. This has helped in expansion of RoA”, he said.
Muthoot Microfin will soon enter Andhra Pradesh and Telangana. “We will enter these two States this financial year itself. We will soon open four branches each in AP and Telangana. We are aiming to have at least 20 branches put together by end March in these two States”, he said.
Thomas Muthoot, Managing Director of Muthoot Microfin, said: “Our focus on expanding operations, coupled with a robust risk management framework has enabled us to grow at a good and sustainable pace. As we look ahead, we are confident in our ability to sustain this momentum and contribute to the economic well-being of the communities we serve. With a commitment to serving customers in new geographies, the company is set to embark on a strategic expansion plan in the coming months.”