Economy Finance Markets

Muthoot Finance shows a growth of 46 percent in its net profit for the current financial year

As per reports, in comparison to 2016-17 where its profit was ₹1,180, Muthoot Finance has now registered a 46 percent increase in net profit at ₹1,720 crore for the current year of 2017-18.

Loan assets as of March 31, 2018, was ₹29,138 crore, against ₹27,278 crore as of March 31, 2017, where the company showed an year-on-year growth of 7 percent. Also, significantly Income tax paid during the year stood at an all-time high of ₹1,037 crore.

MG George Muthoot, the Chairman of the company, said, “even as the company continues to thrust on increasing the gold loan business, the major focus on the divergence of the lending portfolio has begun to produce results.”

The consolidated loan book has shown a 12 percent year-on-year increase to ₹32,154 crore.

George further added, “We take extreme pride in announcing that we are among the top 50 corporate Income Taxpayers in India.”

Also, the loan portfolio of Muthoot Homefin (India) increased by ₹1,024 crore to ₹1,465 crore during the current year. Total revenue for the current year stood at ₹126 crore in comparison to ₹24 crore during the previous year.

The loan portfolio of Belstar Investment and Finance, an RBI-registered micro-finance NBFC and a subsidiary of Muthoot Finance that holds a 66.61 percent stake, also witnessed a growth rate of 97 percent amounting to ₹1,137 crore for the current year.

After the deduction of tax worth ₹34 crore against the previous year’s ₹10 crore, it managed to be profitable. As of March 31, 2018, the gross and net NPAs of Belstar Investment and Finance stood at 0.76{27c26ef558c28c964c96a6821835eda56a0f914c6657a8b819ac8be921972988} and 0.30{27c26ef558c28c964c96a6821835eda56a0f914c6657a8b819ac8be921972988} respectively.

A first-year premium collection of ₹101 crore was generated by Muthoot Insurance Brokers during the year (₹70 crore in the previous year). after deduction of tax, it showed a profit of ₹11 crore (6 crores previous year).

George Alexander Muthoot, Managing Director, claims almost 10 percent of the group assets have been contributed by its subsidiaries.

His statement reads as follows, “In the upcoming year, we expect this to rise to 15 percent.”

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