Muthoot Microfin Ltd Share Price – NSE  /  BSE

Finance, Small Cap

Muthoot Microfin will hold a meeting of the Board of Directors of the Company on 6 May 2024.

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Muthoot Microfin announced its foray into Telangana. The first phase of the expansion will see the inauguration of 4 branches across Telangana in March 2024. These branches will strategically serve locations including Bhuvanagiri, Jangaon, Hanmakonda and Parakala, enhancing accessibility to financial services. Subsequently, Muthoot Microfin plans to further establish branches in Andhra Pradesh by June 2024, reinforcing its commitment to advancing financial inclusion in the two states.

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Total income jumped 52.61% year on year (YoY) to Rs 584.83 crore in the quarter ended 31 December 2023.

Net interest income (NII) increased 53.07% YoY to Rs 343.07 crore in Q3 FY24 from Rs 224.13 crore reported in the same quarter last year.

Net Interest Margin (NIM) improved to 12.60% in Q3 FY24 as against 11.74% posted in Q3 FY23.

Pre-provision operating profit (PPOP) soared 71.97% YoY to Rs 182.31 crore in the third quarter of FY24.

Gross Loan Portfolio stood at Rs 11,458.14 crore in third quarter of FY24 as against Rs 8,264.59 crore in corresponding quarter previous fiscal.

Gross Non-Performing Assets (GNPA) stood at 2.29% as of 31 December 2023 as against 3.49% as of 31 December 2022.

Net NPA stood at 0.33% as on 31 December 2023 as compared with 0.97% as of 31 December 2022.

The firm stated that the capital position was healthy with a CRAR of 29.57%.

The microfinance institution said that 26.28% of its collections were via digital channels such as UPI/Customer App, while 100% disbursements are entirely executed digitally.

In Q3 FY24, return on assets (RoA) was at 4.47%, up 155 bps while return on equity (ROE) stood at 25.97%, up 957 bps.

Thomas Muthoot, managing director of Muthoot Microfin, said “The company’s balance sheet has grown over 12% QoQ and 49% YoY to Rs 112,049.2 million, with active customers number growing by 27% YoY to 3.28 million as of 31 December 2023. Our focus on expanding operations, coupled with a robust risk management framework has enabled us to grow at a good and sustainable pace.”

Sadaf Sayeed, CEO of Muthoot Microfin said, “Our assets under management have grown 5% QoQ and 39% YoY to Rs 114,581.37 million, with PAT soaring by 119% YoY to Rs 1,245.7million for the quarter ending December 2023. Our digital collection is growing steadily with 26.28% of overall collections, a 7% QoQ and 5% YoY growth. The improved NPA figures (NNPA of 0.33%) underscore our commitment to maintaining a healthy loan portfolio. All the key indicators are showing tremendous growth and the macro-economic outlook of the country is favourable to the industry for us to sustain this growth rate.”

Muthoot Microfin is the fifth largest NBFC-microfinance company in terms of gross loan portfolio. The company provides micro-loans to women customers primarily for income generation purposes with a focus on rural regions of India.

Shares of Muthoot Microfin debuted on the bourses on 26 December 2023. The scrip was listed at Rs 278, representing discount of 4.47% to the issue price of Rs 291.

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Net profit of Muthoot Microfin rose 119.04% to Rs 124.57 crore in the quarter ended December 2023 as against Rs 56.87 crore during the previous quarter ended December 2022. Sales rose 52.84% to Rs 581.05 crore in the quarter ended December 2023 as against Rs 380.18 crore during the previous quarter ended December 2022.

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