Profit After Tax (PAT) de-grew by 43.8% YoY from Rs109 crore to Rs62 crore
FinTech BizNews Service
Mumbai, 5 November 2024: Muthoot Microfin Limited (NSE: MUTHOOTMF, BSE: 544055), among India’s leading Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), focused on providing micro-loans to women entrepreneurs with a focus on rural regions of India, today announced its un-audited financial performance for the quarter and half year of the financial year 2024-25.
Business Highlights: Q2FY25
· GLP grew by 15.2% YoY from Rs.10,867 crore to Rs. 12,518 crore; company disbursed Rs. 2,674 crore
· Borrower base grew by 7.7% YoY from 32 lakhs to 34 lakhs across 1,593 branches. The branch count grew by 18.9% YoY as the company added 31 new branches in Q2
· South now comprises 50% of portfolio as the company makes inroads to two new states - Telangana and Andhra Pradesh
Financial Highlights: Q2FY25
· Total income increased by 18.0% YoY from Rs. 565 crore to Rs. 667 crore
· Net interest income (NII) increased by 18.1% YoY from Rs. 338 crore to Rs. 399 crore
· Pre-provision operating profit (PPOP) increased by 26.1% YoY from Rs. 187 crore to Rs. 236 crore
· Profit After Tax (PAT) de-grew by 43.8% YoY from Rs. 109 crore to Rs. 62 crore. The PAT is impacted as we have provided an additional macro enabled overlay of Rs. 31 crs given bulging industry concerns and to address any further impact from disruption in the field due to floods or political activism.
· The GNPA of the Company is at 2.70% as against GNPA of 2.37% a year ago, NNPA (Net of Stage III provision)* stood at 0.97% as against 0.88% last year.
· Robust liquidity of Rs. 706 crore of unencumbered cash and cash equivalents, 6% of the total assets alongside unutilized sanctions totalling Rs. 3,566 crores.
· Healthy capital position with a CRAR of 28.67%.
· 24% of our collections are via digital channels such as UPI/Customer App, while 100% disbursements are entirely executed digitally
Key Metrics: Q2FY25
Particulars | Q2 FY24 | Q2 FY25 | YoY% |
Gross Loan Portfolio (Rs. Cr) | 10,867.0 | 12,518.5 | 15.2% |
Borrowers (Lakh) | 32 | 34 | 7.7% |
Branches (No.) | 1,340 | 1,593 | 18.9% |
Particulars (Rs. Cr) | Q2 FY24 | Q2 FY25 | YoY% |
Net Interest Income (NII) | 337.9 | 399.0 | 18.1% |
Pre-Provision Operating Profit (PPOP) | 187.5 | 236.5 | 26.0% |
Profit After Tax (PAT)# | 109.6 | 61.6 | -43.8% |
Key Ratios | Q2 FY24 | Q2 FY25 | YoY% |
Net Interest Margin (NIM) | 12.79% | 13.36% | +57 bps |
Cost/Income Ratio | 45.54% | 44.54% | -100 bps |
Opex/GLP Ratio | 6.03% | 6.15% | +12 bps |
Gross NPA | 2.37% | 2.70% | +33 bps |
Net NPA* (Net of Stage 3 Provision) | 0.88% | 0.97% | +9 bps |
Return on Assets (ROA) | 4.20% | 2.00% | -220 bps |
Return on equity (ROE) | 23.10% | 8.30% | -1480 bps |
* NNPA % represent Net NPA % (Net of Stage 3 Provision). Net NPA % (Net of Total provision) is 0.10%, 0.33% & 0.23% for Q2 FY’25, Q2 FY’24 & Q1 FY’25 respectively.
# PAT is after providing for management overlay of 31 Cr for Macro economic factors which is over above ECL provisioning.
Commenting on the performance, Mr. Thomas Muthoot, Managing Director of Muthoot Microfin, said, "Amid recent industry challenges, Muthoot Microfin delivered a solid performance this quarter, achieving a 15.2% year-on-year increase in our Gross Loan Portfolio, now at ₹12,518 crore. We also added 31 new branches during this period. Our disciplined lending practices, backed by robust underwriting standards and prudent NATCAT policies, have driven sustainable portfolio growth while preserving asset quality. This quarter, we maintained a GNPA of 2.70% and NNPA of 0.97%, underscoring the strength of our portfolio.
As we look ahead, we are prepared to accelerate our growth trajectory in this evolving industry landscape. With the implementation of SRO guardrails, we are committed to upholding high standards that will further strengthen stakeholder confidence and enhance the industry’s reputation.”
Mr. Sadaf Sayeed, CEO, Muthoot Microfin, said, “The company has cautiously inched up disbursements to Rs. 2,674 crore in the September quarter, up from ₹2,204 crore in the previous quarter and returning to similar levels as last year. We expect growth to reaccelerate in coming quarters with usual seasonal upswing coupled with our focus on harnessing existing customers and strengthening our core geographies.
Our asset quality remains stronger-than-peers led by our core mature southern markets and our robust underwriting and collection practices. During Q2, we have gone a step further and adopted a stance of being far more conservative providing additional Macro enabled overlay of 31.2 crore given bulging industry concerns. This increase in provisioning has resulted in creating Rs.153cr surplus to IRAC prudential norms.
Our willingness to invest against profitability has negatively impacted our ROA during the quarter which has gone down to 2.00%. We continue to underpin our ambition of industry leading returns and re- calibrate our FY25 ROA guidance to 3.0-3.5% acknowledging the uncertainty prevailing within the industry while maintaining a continuous focus on balancing growth, profitability, and liquidity.”
