InvestorQ : How do you read the latest quarterly results of Muthoot Finance for the Sep-20 quarter?
vidhya Laxmi made post

How do you read the latest quarterly results of Muthoot Finance for the Sep-20 quarter?

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sarah Leo answered.
4 weeks ago
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Muthoot Finance reported a marginal 2.50% increase in net profit at Rs.931 crore for the Sep-20 quarter. Total income from operations for the Sep-20 quarter grew 17.4% to Rs.2824 supported by a 29% growth in consolidated loan assets under management to Rs.52,286 crore.

Muthoot Finance derives a chunk of its revenues from the gold lending activities and for the Sep-20 quarter, it saw highest ever quarter-on-quarter growth in its gold loan portfolio supported largely by a return of customers to the market and a preference of small businesses to fund their needs via gold loans which are much easier to access.

The gold loan portfolio of Muthoot in Sep-20 grew by Rs.5,739 crore, or roughly14% on a sequential basis. Most small businesses have preferred to opt for gold loans as these funds are easily available and also easier to access with minimal documentation. Their half year profits stood at Rs.1735 crore.

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