Muthoot Finance today reported an increase of 21 percent in net profit at Rs 187 crore for the third quarter ended December 31, 2015. The company had posted a net profit of Rs 154 crore in the corresponding October-December quarter of the previous fiscal. Total income of the gold financing company rose 7 percent at Rs 1,141 crore as against Rs 1,069 crore in the year-ago period, it said in a BSE filing.
"The woes of the economy continue to impact us. However, we could achieve 21 per cent increase in profit after tax at Rs 187 crore," Muthoot Finance Chairman M G George Muthoot said. Managing Director George Alexander Muthoot said: "Fall in interest cost as well as better control on expenditure and lower provisions have enabled us to show a better performance this quarter."
"Since gold loans are of short duration and consequent to higher level of demand being absent, incremental growth in portfolio is muted," he added. However, the company is witnessing good demand for the new customer-friendly lifestyle schemes. Besides, to meet unforeseen contingencies and as a matter of higher level of investor comfort, the company has increased the standard asset provision again from 0.5 percent to 0.52 percent, thus in excess of regulatory requirement of 0.25 percent.
This will be the first complete financial year after Sri Lankan Asia Asset Finance Plc became its subsidiary, and the business in island nation made considerable progress, he said. Shares of the company today closed 0.24 per cent lower, at Rs 185.20 apiece on the BSE.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
