India’s largest Gold loan finance company Muthoot Finance Limited(MFIN) on 2nd June, Wednesday reported a 22% rise in standalone Profit After Tax(PAT) at ₹996 crore for 3 months that is from Jan to March 2021 as compared to a standalone profit of ₹ 815 crore in the year-ago period, whereas for the full year, the standalone net profit rose by 23% to ₹3722 crore in FY 2021 as compared to ₹3018 crore in FY 2020 due to good growth performance of the gold loan division.
Muthoot Finance Limited Co. (MFIN) have seen the good business growth during the last year also, especially in 2nd and 3rd Quarter of 2020. After the pandemic, there was a lot of demand for gold loan against bank loan; as everybody wanted to restart their business once again and for this businesses wanted quick funding and it was a good idea to go for gold loan in respect of bank loan as it was a hassle-free procedure for obtaining instant funding of money.
The Muthoot Co. Gold loan division reported a quarter-on-quarter growth of 5% during Quarter 4 and net profit of gold division rose by 24% year-on-year basis while other Muthoot Finance Limited Subsidiaries i.e.( home loans, microfinance, and insurance broking sector) declined by nearly 9% and net profit declined by 32% from 176 crores in 2020 to 119 crore in 2021.
Key highlights of FY 2020-21 of Muthoot Finance Limited(MFIN):
1. Consolidated loan Assets Under Management(AUM) increased by 24% on a year-on-year basis at ₹58280 crores for FY 2021 v/s ₹46871 crores for FY 2020.
2. Consolidated PAT increased by 21% on a year-on-year basis at ₹3819 crores for FY 2021 v/s ₹3169 crores for FY 2020.
3. Standalone loan AUM increased by 20% on a year-on-year basis at ₹52622 crores for 31st March 2021 v/s 41611 crores on March 31st, 2020.
4. Standalone PAT increased by 23% on a year-on-year basis at ₹3722 crores for FY 2021 v/s ₹3018 crores for FY 2020.
During this quarter Gold loan assets increased by ₹2304 crores.
CRISIL and ICRA two largest Credit Rating Agencies upgrades the long-term credit rating of Muthoot Finance Company from AA to AA+/ stable.
Also Dividend of 200% on the face value of shares of ₹10 each involving a payout of ₹802 crores declared by Muthoot Finance Co. which makes them only Gold loan NBFCs with ‘AA+’ credit rating by these rating agencies.