Driven by growth in customer acquisition and expansion of the branch network, Muthoot Microfin, a non-banking financial company- micro finance institution (NBFC-MFI), has posted steady numbers in the first quarter of the current financial year (Q1FY25).
According to the company’s un-audited financial performance figures, the profit after tax (PAT) of the company has increased by 50.4 per cent year-on-year (YoY) basis from Rs 96 crore in Q1FY24 to Rs 113 crore in Q1FY25. The total income has also gone up from Rs 480 crore in Q1FY24 to Rs 641 crore in Q1FY25, witnessing a 33.5 per cent YoY growth.
The company’s assets under management (AMU) have also increased by 21.6 per cent YoY taking the figure to Rs 12,210 crore in Q1FY25 from Rs 10,038 crore during the same quarter a year ago. The company made inroads into two new states, namely Telangana and Andhra Pradesh. It added 54 new branches in the recently concluded quarter, taking the total to 1562 branches, a 27 per cent increase on a YoY basis. The borrower base also grew by 13.1 per cent YoY to 34 lakhs, the company stated in a press release.
The Gross loan portfolio of the company registered a 21.6 per cent YoY growth in the quarter, taking the figure to Rs 12,210.3 crore from Rs 10,037.6 crore in Q1FY24.
The net interest income of the company grew to Rs 382.6 crore in Q1FY25 from Rs 280.1 crore in Q1FY24, marking a 36.6 per cent YoY jump. The net interest margins also increased by 123 basis points to 13.29 per cent in Q1FY25 from 12.05 per cent a year ago.
Thomas Muthoot, Managing Director, Muthoot Microfin, said, “Q1FY25 was a challenging quarter. In spite of the long duration of general elections, we managed to maintain the growth momentum. Despite these temporary disruptions, we remained resilient and continue to focus on steady portfolio growth driven by customer acquisition and the expansion of our branch network.”
As far as the gross non-performing assets (NPA) are concerned, it was down by 65 basis points from 2.75 per cent in Q1FY24 to 2.10 per cent in Q1FY25. The return on equity declined significantly by 701 basis points from 22.84 per cent in Q1FY24 to 15.82 per cent in Q1FY25.
The company lowered the interest rates by 35 basis points in July, the second reduction this year, bringing the effective lending rate to 23.30 per cent from 23.65 per cent. The company boasts robust liquidity of Rs 1,070 crore of unencumbered cash and cash equivalents.
Sadaf Sayeed, CEO, Muthoot Microfin, stated, “Reflecting on our Q1-FY25, we are proud with our consistent operating performance. In spite of the elections, heatwaves and seasonal factors at play during the quarter, AUM growth remained strong at 21.6% YoY driven by expansion in branches and acquisition of customers.”
