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Muthoot Finance, a leading gold loan financier in India, reported an 11 per cent increase in net profit, reaching Rs 1,079 crore for the first quarter ended June 30, 2024. This growth comes in comparison to the Rs 975 crore net profit earned in the same quarter last year.
The company’s total income also saw a significant rise, climbing to Rs 3,710 crore during the April-June quarter, compared to Rs 3,026 crore in the corresponding period of the previous year. This increase was highlighted in a regulatory filing released by Muthoot Finance on Tuesday.
However, the company's total expenses grew as well, rising to Rs 2,218 crore from Rs 1,711 crore a year ago. Despite the increase in expenses, the company’s loan assets under management (AUM) showed strong growth, standing at Rs 84,324 crore, a 25 per cent increase from Rs 67,639 crore in Q1 FY24.
Notably, during the quarter, the company's loan assets surged by Rs 8,497 crore, marking an 11 per cent growth. Gold loan assets, a key segment for Muthoot Finance, increased by Rs 8,043 crore, also reflecting an 11 per cent rise.
This solid financial performance underscores Muthoot Finance’s continued dominance in the gold loan market, as it effectively navigates the challenges posed by economic conditions.
