Q1 2025 Muthoot Capital Services Ltd Earnings Call Transcript
Key Points
- Muthoot Capital Services Ltd (BOM:511766) achieved a significant asset sourcing of INR498 crores in Q1 FY '25.
- The company successfully reduced its Gross Non-Performing Assets (GNPA) by 55.4% year-on-year, bringing it down to 9.84%.
- Net Non-Performing Assets (NNPA) also saw a reduction of 28.1%, now standing at 3.41%.
- Total Assets Under Management (AUM) increased by 25.43% year-on-year, reaching INR2,182 crores.
- The company has diversified its portfolio by adding new product lines such as electric vehicles (EVs), loyalty loans, and used cars.
- Despite the positive financial performance, the company faced an increase in NPAs from the pre-COVID portfolio, impacting profitability.
- The cost of borrowing has increased slightly, despite efforts to reduce it.
- The company had to take additional hits in profit due to provisioning and employee appraisals, impacting overall profitability.
- There is a significant concentration of the portfolio in the southern region of India, which could pose a risk.
- The company has not made any new corporate loan transactions in the quarter, indicating a potential slowdown in this segment.
Ladies and gentlemen, good day and welcome to the Muthoot Capital Services Limited conference call hosted by Elara Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Shweta Daptardar from Elara Securities Private Limited. Thank you. And over to you, ma'am.
Thank you, Mia. Good morning, everyone. On behalf of Elara Securities, we welcome you all to Q1 FY '25 earnings conference call of Muthoot Capital Services. From the esteemed management today, we have with us Mr. Mathews Markose, CEO; Mr. Ramandeep Gill, CFO.
Without further ado, I now hand over the call to Mr. Gill for opening remarks, post which we can open the floor for Q&A. Thank you and over to you, sir.
Thanks, Shweta. A very good morning to all of you. I welcome all of you to the investor call for the Q1
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