Q1 2025 Muthoot Finance Ltd Earnings Call Transcript
Key Points
- Muthoot Finance Ltd (BOM:533398) reported the highest-ever standalone profit after tax of INR1,079 crores and consolidated profit after tax of INR1,196 crores for the quarter.
- The consolidated loan assets under management crossed INR98,000 crores, with standalone loan assets under management at INR84,324 crores.
- The company successfully raised $650 million through global issuance of bonds and opened 280 new branches.
- Subsidiaries like Belstar Microfinance and Muthoot Home Finance showed significant growth, with Belstar's profit after tax increasing to INR19 crores and Muthoot Home Finance's loan assets growing to INR2,199 crores.
- Muthoot Finance Ltd (BOM:533398) has been selected for the FATF, Financial Action Task Force, on-site mutual evaluation report on India, highlighting its compliance and operational excellence.
- The company faced technical difficulties during the earnings call, impacting the clarity of some responses.
- There was a significant increase in impairment of financial instruments, amounting to INR375 crores, primarily due to ECL provisions and an increase in Stage III assets.
- Despite strong growth, the company maintained a conservative guidance of 15% AUM growth, which some analysts felt was too cautious given the current performance.
- The GNPA (Gross Non-Performing Assets) for Muthoot Money and other subsidiaries, although declining, still posed a concern for investors.
- Operational expenses increased, leading to a higher cost-to-assets ratio, which was attributed to the impairment provisions and other operational costs.
Ladies and gentlemen, good day, and welcome to the Muthoot Finance Q1 FY 2025 earnings conference call hosted by DAM Capital Advisors Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sanket Chheda. Thank you, and over to you.
Yeah. Hi, all. Good evening. I welcome you, all, to the Muthoot Finance Q1 FY25 conference call. We have with us the entire management team today.
We will start with George Alexander Muthoot, who is the Managing Director; Alexander George, who is a Whole-Time Director; George M. Alexander, Whole-Time Director; George M. George, Whole-Time Director; George M. Jacob, Whole-Time Director; Mr. Eapen Alexander, who is our Executive Director; Mr. K.R. Bijimon, who is Executive Director; and Mr. Oommen Mammen, who is our CFO.
Without further ado, I'll hand the call over to the MD, sir. We'll follow that up with questions and answers. Over to you, sir.
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