Q3 2024 Muthoot Finance Ltd Earnings Call Transcript
Key Points
- Muthoot Finance Ltd (BOM:533398) reported a 27% year-on-year increase in consolidated loan AUM, reaching INR82,773 crores.
- The company's consolidated profit after tax increased by 23% year-on-year, amounting to INR3,285 crores for the nine-month period.
- Subsidiary Belstar showed significant growth with a 65% increase in AUM and an 85% rise in loan disbursements year-on-year.
- Muthoot Home Finance reported a 26% year-on-year increase in loan assets under management, now standing at INR1,783 crores.
- The company successfully raised INR480 crores through the 33rd Public Issue of Secured Redeemable Non-Convertible Debentures this quarter.
- There was a slight dip in new customer additions and old customer reactivations on a sequential basis, attributed to seasonal factors.
- The cost of borrowings is expected to rise from 8.55% to around 9% in the next six months, potentially impacting margins.
- Belstar's asset quality showed a minor deterioration with a 40 basis points increase in NPAs sequentially.
- The company's operational expenses saw a significant jump, particularly in the insurance brokers entity, though the exact reason was not specified.
- The gold loan growth was largely driven by an increase in gold prices rather than new customer acquisitions, indicating a dependency on gold price fluctuations.
Ladies and gentlemen, good day, and welcome to the Muthoot Finance Limited 3Q FY24 earnings conference call hosted by Nirmal Bang Institutional Equities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Rati Pandit from Nirmal Bang Institutional Equities. Thank you, and over to you, ma'am.
Thank you, Rico. A very good evening to everyone. On behalf of Nirmal Bang Institutional Equities, we welcome you all to the 3Q FY24 earnings conference call of Muthoot Finance Limited. We are pleased to host the senior management of the company, represented by Mr. George Alexander Muthoot, Managing Director; Mr. Alexander George, Whole-Time Director; Mr. George M. Alexander, Whole-Time Director; Mr. George M. George, Whole-Time Director; Mr. George M. Jacob, Whole-Time Director; Mr. Eapen Alexander, Executive Director; Mr. K.R. Bijimon, Executive Director; and Mr. Oommen K. Mammen, Chief Financial Officer.
I now hand over the call to
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