Muthoot Finance reported 66 percent YoY jump in its consolidated net profit to Rs 803 crore in the quarter ended December 2019 against profit of Rs 485 crore.
Total income rose by 35 percent to Rs 2,313 crore from Rs 1,717 crore in the year-ago period.
During the quarter, gold loan assets increased by Rs 2,783 crore.
Here are the highlights from the Muthoot Finance's earnings call as compiled by Narnolia Financial Advisors:
Company management has taken a hike in the interest rate from the month of June which is now reflecting in the portfolio.
Management has guided ECL standard provision at 1.33% while write off is to be around 10-15 bps of the loan assets.
Other expenses increase mainly on account of rental expenses, Rs 21 crore of MTM loss for foreign exchange loss and Rs 44 crore advertisement expenses. Management has guided the incremental OPEX is to be driven by advertisement expense.
In the housing, book management has guided to end up at Rs 2,200 crore with the disbursement of Rs 700-900 crore in FY21. RoA is expected to maintain 2%.
Management has guided to keep the liquidity high in the book going level.