· Q3 profit jumps by 143.94%; Total AUM stands at Rs 1979.56 crores, up by 55.97% as on Dec 31, 2017, YoY
New Delhi, Jan 15 2018: With innovative and technology led initiatives, strategic moves and geographical spread through the year, for 9M, 2017-18, Muthoot Capital Services Limited (MCSL) has shown remarkable performance and rapid growth. MCSL, a rising star in the 130-years-old Muthoot Pappachan Group, reported a handsome Rs 32.16 crores profit for the 9 months of FY 2018, registering the highest ever quarterly and 9 Month profit so far for the two-wheeler financing major.
According to the unaudited financial results, as approved by Board of Directors here today, the profit after tax for the quarter ending December 31, 2017 rose by 143.94 % over the corresponding quarter of the previous year, from Rs 6.44 crores to Rs 15.71 crores. The total income for the quarter under review touched Rs 105.22 crores, against Rs 70.07 crores for the corresponding quarter of the previous year, showing a growth of 50.19 %. The company disbursed two-wheeler loans of Rs. 485.89 crores during the quarter ending December 2017 (Rs.270.95 crores for the corresponding quarter previous year) and a total disbursement of Rs. 526.09 as against Rs. 313.90 crores for the corresponding quarter in the previous year. The total AUM (Asset under Management), including managed portfolio, reached Rs 1979.56 crores at the end of the quarter.
Considering the cumulative performance for the first three quarters of the current financial year FY 2018, the Company achieved a total income of Rs 279.33 crores compared to Rs 204.40 crores for the corresponding period last year, recording a growth of 36.66 %. The finance expenses increased by 15.77 % from Rs 78.18 crores to Rs 90.51 crores during the period. The overall Net Interest Income (NII) went up from Rs 126.22 crores to Rs 188.83 crores, a growth of 50%. The profit before tax for the 9M period in the current year recorded a growth of 69.30 % to Rs 49.57 crores compared to Rs 29.28 crores for the same corresponding period last year. The Company recorded net profit amounting to Rs 32.16 crores for the 9 months ended 31stDecember 2017, which is 69.53 % higher compared to Rs 18.97 crores for the corresponding period last year.
In the current quarter the Company successfully did a QIP raising Rs 165 crores, getting high profile Mutual Funds and other Investors into the Company. The equity raise, besides helping the Company in improving its Capital Adequacy, will also help the Company grow aggressively in the existing and new geographies over the next few quarters.
“As part of our strategy towards customer-centric digital transformation, in the year 2017-18 the Muthoot Pappachan Group has taken several robust and strategic steps, such as investment in new-age Fintech startups, SMS-based transactions for Gold Loans and so on. Muthoot Capital Services, being one of the key and core company in the Group, has also taken several strategic and smart initiatives resulting in the exemplary performance. The QIP successfully concluded in the current quarter will enhance the performance of the Company through funds for faster growth in operations, lower leveraging, higher Capital Adequacy and lower cost of funds.” said Mr. Thomas George Muthoot, Managing Director, Muthoot Capital Services Ltd.
“The coming times will be focused on incorporating the best of practices in terms of technology, processes, people, markets and initiatives. It is an exciting phase for the company where enhanced productivity will take the center stage. Movement into newer geographies is picking pace and would be the next engine for growth. The Company is looking at new products and hope to have at least one new market tested in the current quarter” said Mr. Madhu Alexiouse, Chief Operating Officer, Muthoot Capital Services Ltd.
About Muthoot Capital Services Ltd
Muthoot Capital Services Ltd. (MCSL) is the first listed entity of Muthoot Pappachan Group. A Non-Banking Financial Company (NBFC) listed on the BSE and NSE, MCSL offers financial solutions including Vehicle Loans (2 wheeler loans). MCSL is presently active in retail financing and caters to the requirements of borrowers both in rural and semi-urban areas. The Company's direct approach helps arrive at solutions that best suit the financial requirements of individuals and small entrepreneurs. The Company being a deposit taking ‘Category A’ NBFC, also accepts deposits from public at attractive rates of interest. The company is currently servicing more than 2,200 dealerships in fifteen states and a strong presence with Hero and Honda, which together contribute more than 80% of the total business.
About Muthoot Pappachan Group
Muthoot Pappachan Group (MPG), the 130-year-old business conglomerate has been providing solutions, services and expertise to millions of customers across the country in various domains like financial services, automotive, realty, hospitality, IT and alternate energy. Over the years, Muthoot Pappachan Group has grown to become a significant entity in the Indian business landscape. Muthoot Pappachan Group in fact is one of the largest employees in the country, across industries, providing employment to over 20,000 people and endeavouring to give them a family-like work environment. The group’s customer-centric approach and innovation in terms of new products that cater to changing customer needs, have helped in gaining the loyalty of innumerable customers, as well as attracting new ones. The Group adopts the latest technology and new ways of catering to the needs of customers, coupled with an uncompromising stand on values, principles and ethics.
Muthoot Fincorp Ltd., the flagship company of Muthoot Pappachan Group, is one of the largest NBFCs in India with over 3600 retail branches, pan India. Muthoot Fincorp is a provider of retail finance, predominantly in the form of secured and unsecured loans to the middle and low-income customer. Decades of customer centricity, dedicated research and experience with the customers and their families have enabled the Company to provide quick and customized financing options and investment schemes for millions of customers. Muthoot Fincorp is one amongst the largest Gold Loan companies in India. At the same time the company has a diverse mix of retail offerings catering to the various needs of its customers including MSME Loan products, Housing Loan, Auto Loan, Money Transfer, Foreign Exchange, Insurance Services, Wealth Management Services and Travel related services.
Five years ago, the Group entered the affordable housing finance arena through Muthoot Housing Finance Company Ltd (MHFCL). MHFCL caters mainly to the housing finance requirements of customers in the middle and lower income category. The Company offers housing loan, primarily to the people in the unorganised sector to make their dream of owning a home come true. Loan amounts range from Rs.3 lakhs to Rs.15 lakhs, with a loan repayment period up to 15 years and a loan-to-property value of up to 80%. MHFCL offers loans for the purchase of ready property, house/flats under-construction, self-construction on own plot and home extension for the informal segment, who has got income but no proof of income.
The Muthoot Pappachan Group firmly believes that financial inclusion of the economically weaker section of society is important for the socio-economic growth of the country. With this belief Muthoot Microfin Ltd., the micro finance business unit was launched by the Group in 2015. It follows the Joint Liability Group (JLG) model of micro-finance. Clients are organized in groups of five to ten women from economically weaker sections of society, living in rural and semi- urban areas or urban slums. Target clients are economically active women with regular cash flow through lawful, sustainable and stable economic activity. Under this program, everyone in a JLG is offered a loan between Rs. 10,000 to Rs. 15,000 depending on her repayment capacity, for a tenure of 52 weeks. It also fosters entrepreneurship skills among women and gives them basic financial literacy.
The Group has contributed to the tourist attractions of Kerala by setting up star hotels run by the Taj and Hilton Groups, Villa Maya, the exclusive restaurant and Sky Chef, the air catering unit, while contribution to safe and clean energy comes in the form of electricity through wind farms and to technology through the state of the art Muthoot Technopolis.
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