Muthoot Finance Q3 Results: Net profit jumps 26% to Rs 1,389 crore

Muthoot Finance

Muthoot Finance on February 12 reported a net profit of Rs 1,389 crore for the quarter which ended on December 31, 2024. This marks a rise of nearly 26 percent from the Rs 1,104 crore net profit reported in Q3 of the previous financial year.

The company's revenue from operations meanwhile jumped 36 percent year-on-year to Rs 5,190 crore during the reported quarter. It had earlier reported revenue from operations at Rs 3,820 crore in the corresponding quarter of FY24. Muthoot Finance's interest income also significantly surged to Rs 5,067 crore.

The company reported its highest ever consolidated loan assets under management (AUM) at Rs 1.11 lakh crore, as on December 31, 2024. During the reported quarter, its gold loan assets increased by Rs 6,800 crore.

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"Amid favorable macroeconomic indicators, the union budget’s positive tax reform announcements are expected to start a consumption cycle, combined with a steadfast commitment to the fiscal deficit target, the general economic outlook looks promising. Also, RBI’s focus on enhancing liquidity, and the move to slash the benchmark interest rate for the first time in 5 years, paint an optimistic outlook," said George Jacob Muthoot, Chairman, The Muthoot Group.

"We have tempered disbursements in response to challenges faced in microfinance sector, and our focus continues to be on strengthening collections and enhancing quality of loan book. We are closely monitoring the industry situation, and we see this as a transitionary issue, and expect it to get to be resolved in the next couple of quarters. The expansion of our branch network and the increasing adoption of digital platforms have further strengthened customer engagement, with a significant portion of transactions now being facilitated through digital channels," said Muthoot Finance Managing Director George Alexander Muthoot.

The Q3 results were announced in the post-market hours of February 12. The shares of the company closed in the red at Rs 2,176.85 apiece. The stock will be kept under active watch when the market reopens on February 13.