Muthoot Finance Q4 results: Share price jump over 6% as company records all-time high gold loan growth in Q4
Muthoot Finance share price jumped over 6% in the early morning trade Monday after the company reported its earnings for the quarter ended March 2023.
The stock price rallied as much as 6.47% to ₹1,101.70 apiece on the BSE.
The gold financier Muthoot Finance posted a net profit of ₹1,009.2 crore in Q4FY23, registering a rise of 0.3%, from ₹1,006 crore in the corresponding period last year.
The company’s revenue from operations grew 8.4% to ₹3,274.8 crore in the January-March quarter from ₹3,021.1 crore in the year-ago period.
Muthoot Finance, the largest gold loan NBFC in the country, reported the highest-ever quarterly gold loan disbursement in the fourth quarter of FY23 at ₹51,850 crore and an all-time high gold loan growth of ₹5,051 crore during the period.
Muthoot Finance’s consolidated loan assets under management grew 11% YoY to ₹71,497 crore in FY23 as against Rs.64,494 crore in the previous fiscal.
The company had also announced an interim dividend of ₹22 per equity share for the financial year FY23. In percentage terms, the dividend comes to around a 220%.
“Increase in Stage 3 assets is purely an accommodation given to customers for few more months on the back of higher collateral value and we do not envisage any loss on account of the extended time.
We have entered into new lending products like small business loans as well as micro personal loans.
We intend to achieve calibrated growth in these new products during FY 24.
We also see revival in disbursements in subsidiaries,” said George Alexander Muthoot, Managing Director, Muthoot Finance.
Muthoot Finance stock price has fallen over 5% in the last one year. However, it has jumped over 12% in the last three months.
Brokerage firm Motilal Oswal Financial Services said that the Muthoot Finance reported a strong operational quarter, with a healthy sequential growth in gold loans without the associated trade-offs in spreads/margins.
“However, striking an appropriate balance between loan growth and margin will still remain an important deliverable in FY24. With limited upside catalysts, an aggressive competitive landscape and the need for a shift in gold loan NBFCs’ business model, we maintain our Neutral rating with a target price of ₹1,125 (based on 1.6x Mar’25E BVPS),” the brokerage said.
At 9:35 am, the shares of Muthoot Finance were trading 5.79% higher at ₹1,094.65 apiece on the BSE.
Bylivemint
