Muthoot Finance announced its Q4FY23 results on 19 May, reported a net profit 1,009.2 crore, registering a marginal increase of 0.3 percent as against 1,006 crore in the same period last year. The Gold Financing Company’s revenue from operations was 3,274.8 crore in the January-March quarter, registering a growth of 8.4 per cent 3,021.1 crore in the year-ago period.
Read also: Muthoot Finance declares 220% interim dividend 22, sets record date
The company has made the highest ever quarterly gold loan disbursement in the fourth quarter of FY 2022-23 at Rs. 51,850 crore and all-time high gold loan growth 5,051 crore during this period. total cost of loss 1,943.48 crore during the quarter, registering a growth of 15 percent as against 1,689.31 crore in the year-ago period.
Muthoot Finance’s consolidated loan assets under management grew 11 per cent year-on-year to Rs 71,497 crore in FY23, as against Rs 64,494 crore in the previous fiscal.
Analysts were expecting an average gain 946 crore as per Refinitiv IBES data. The gold loan industry has been consistently benefiting from the rally in the metal prices amid increased investment in gold as a safe haven due to market volatility.
The overall target loan industry has seen an increase in the cost of funds amid rising interest rates, driving away potential borrowers. The macroeconomic environment pushed up interest rates on loans during the quarter. The company had declared an interim dividend of Rs. 22 per share for the year ending 6th April, 2023 as on 31st March, 2023.
“We expect loan book growth of 10-15 per cent during FY24. We continue to engage in various social projects and spend Rs 96 crore under CSR during FY2023. We continue to share the profits generated during the year by paying an interim dividend of 220 per cent to our shareholders, ie Rs. 22/- per Equity Share Rs. 10/- each which includes total payment 883 crore,” said George Jacob Muthoot, chairman of the Muthoot Group.
Shares of Muthoot Finance closed at 1.45 per cent on May 19. 1,034.75 per share on BSE.
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