Muthoot Finance's net profit in the October-December period of the current fiscal came in at Rs 1,027.3 crore, which is 13.9 percent higher as against the year-ago quarter, as per the financial results declared by the company on February 14.
The company's net profit in the corresponding period of the previous fiscal stood at Rs 901.7 crore.
The net interest income, which is the difference between income earned from lending operations and interest paid to depositors, came in at Rs 1,905.7 crore in Q3 FY24. This is 11.8 percent higher as compared to Rs 1,704.3 crore recorded in the year-ago period.
The net profit and NII surpassed the CNBC-TV18 estimates of Rs 958.8 crore and Rs 1,871.5 crore, respectively.
The board also approved raising up to Rs 16,000 crore through an issue of non-convertible debentures.
Gold prices hit a record high during the quarter and benefitted gold financiers by increasing the value of pledged gold collateral, driving loan growth as more customers sought loans against their higher-valued assets.
The company's standalone loan assets under management(AUM) increased 23 percent, while gold-loan AUM grew 22 percent for the nine months ended December 31.
Finance cost rose surged 33 percent in the quarter amid elevated borrowing costs.
Muthoot Finance had missed estimates in the previous three quarters due to higher finance costs.
Indian lenders have been facing higher finance costs as the central bank kept key lending rates unchanged for the past six policy meetings following, a 250 basis points increase since May 2022.
Smaller rival Manappuram Finance, last week, reported a profit that beat estimates, driven by growth in non-gold loan segments.
Shares of Muthoot Finance closed at Rs 1,383 apiece on the BSE during the day's trading session, higher 1.14 percent as against the previous day's close.
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