Muthoot Finance net profit falls 10% to Rs 902 crore in July-September

Muthoot Finance on Thursday reported a decline of 10 per cent in its consolidated net profit at Rs 901.6 crore in the July-September quarter of FY23 as income fell.

The country’s largest gold financier in terms of loan portfolio had posted a net profit of Rs 1,002.90 crore in the same period of the previous fiscal year. Compared sequentially, however, the net profit rose by 9 per cent from Rs 825 crore in June 2022 quarter.

Company’s total income during July-September period of 2022-23 fell to Rs 2,841.9 crore as against Rs 3,064.8 crore in the same period of 2021-22, Muthoot Finance said in a regulatory filing. The interest income was down by 8.2 per cent at Rs 2,757.9 crore in Q2FY23 from Rs 3,003.3 crore in the year-ago period.

With 4,641 branches across India, Muthoot Finance said that rural India accounts for about 65 per cent of total gold stock in the country. Muthoot Finance also offers services such as money transfer, collection services, business and personal loans.

As of September 30, 2022, Muthoot Finnace had 177 tonnes gold jewellery kept as security. It was flat as compared to 178 tonnes each, by year ago period September 2021 and preceding quarter ended June 2022. However, it fell from 187 tonnes at end of March 2022.

The gold loan assets were worth Rs 56,500 crore as of September 30, 2022, up from Rs 54,700 crore in the year-ago period. Company’s loans assets under management in Q2FY23 stood at Rs 57,230.30 crore. Stock of Muthoot Finance closed at Rs 1,105.35 apiece on the BSE, down 1.18 per cent from previous close.