Profit Rises 14.3%, But Misses Estimates

Muthoot Finance Ltd.’s second quarter profit rose, though it missed analysts’ estimates.

The lender’s standalone net profit rose 14.3% year-on-year to Rs 991 crore in the quarter ended September, according to an exchange filing. Analysts polled by Bloomberg had estimated a standalone net profit of Rs 1,057.8 crore.

Sequentially, it rose 2%. The company’s total income stood at Rs 3,074 crore, up 23% year-on-year.

Interest income, on a standalone basis, increased 21.8% year-on-year to Rs 3,014.7 crore. The financing cost was up 28% year-on-year to Rs 1,156.3 crore.

Muthoot Finance’s asset quality improved, with standalone stage 3 gross loan assets falling 25 basis points to 4.01% quarter-on-quarter. The ECL provision however, stayed flat, sequentially at 1.24%, as compared with 1.25% quarter-on-quarter.

The net interest margin compressed 70 bps quarter-on-quarter to 10.88%.

The loan assets under management were up 21% year-on-year to Rs 69,002 crore.

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