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Muthoot Finance Q4 FY21 Earnings Call Highlights

Muthoot Finance Q4 FY21 Earnings Call Highlights

Published on 11 June 2021

 

Management:

George Alexander Muthoot - Managing Director

Oommen K. Mammen - Chief Financial Officer

K.R. Bijimon - Chief General Manager

 

 

Q4 performance:

 

  • Muthoot Finance reported growth in gold AUM at 27% YoY in Q4 FY21.
  • Interest income increased from Rs 27,169 Mn in Q3 FY21 to Rs 27,891 Mn in Q4 FY21; 2.7% QoQ growth.
  • PBT increased from Rs 13,315 Mn in Q3 FY21 to Rs 13,496 Mn in Q4 FY21.
  • PAT increased from Rs 9,914 Mn in Q3 FY21 to Rs 9,957 Mn in Q4 FY21.
  • Total liabilities decrease by 1% from Rs 465,517 Mn in Q3 FY21 to Rs 460,196 Mn in Q4 FY21.
  • Gold Loan Assets Under Management as of march’21 is around Rs 519 Bn which grew from Rs 496 Bn in Q3 FY21.
  • Average Gold Loan Per Branch is Rs 112 Mn in Q4 FY21 which grew from Rs 107 Mn in Q3 FY21.
  • ROE in Q4 FY21 was 27%.
  • NIMs declined by 27bps QoQ to 14.27%
  • Capital adequacy ratio was 27.5% as on March’21
  • Price to earnings ratio as on March’21 was 13 and price to book value ratio was 3.2.
  • During Q3FY21, added 3.88 lakh new customers and 3.61 lakh new customers in Q4FY21.

 

 

FY21 performance of the group:

 

  • The total gross loan assets of the group grew from Rs 468,705 Mn in FY20 to Rs 582,802 Mn in FY21; YoY growth is 24%.
  • Consolidated profit of the group grew from Rs 31,687 Mn in FY20 to Rs 38,189 Mn in FY21; YoY growth is 21%.
  • Contribution of Muthoot finance in the consolidated gross loan assets of the group is 90% and the remaining is of its subsidiaries.
  • Contribution of Muthoot finance in the profit of the group is 97% and the remaining is of its subsidiaries.
  • The standalone profit of Muthoot finance ltd. in FY21 is Rs 37,222 Mn which grew from Rs 30,183 Mn in FY20.
  • The total consolidated assets grew from Rs 548,816 Mn in FY20 to Rs 686,414 Mn in FY21.
  • The total standalone assets grew from Rs 504,597 Mn in FY20 to Rs 634,649 Mn in FY21.
  • The total loan disbursements in the year is Rs 1.24 lakh crore.
  • Loan assets under management is Rs 526,223 Mn.
  • The consolidated profit after tax is now at Rs 3,819 crores, which is a 21% year-on-year growth.
  • Standalone profit before tax increased by 23% YoY; it grew from Rs 40,574 Mn in FY20 to Rs 50,065 Mn in FY21.
  • Standalone profit after tax increased by 23% YoY; it grew from Rs 30,183 Mn in FY20 to Rs 37,222 Mn in FY21.
  • Gold jewellery kept as security is 171 tonnes.
  • Interest income increased by 21% YoY; it grew from Rs 85,644 Mn in FY20 to Rs 103,285 in FY21.
  • ROE in FY21 was 28%.

 

 

Loan assets:

 

  • Interest Income on Average Loan Assets was 22.2% in FY21 and was 21.7% in Q4 FY21.
  • Interest Expense on Average Loan Assets was around 8% in FY21 and was 7.4% in Q4 FY21.
  • Net Interest Margin in FY21 was around 14.24% and 14.27% in Q4FY21.
  • return on average loan assets in FY21 was around 8% and 7.8% in Q4 FY21.
  • operating expenses to average loan assets ratio was around 4% in FY21.

 

 

Liability mix: 

 

  • Borrowings from Banks/Fis - 198,331 Mn (43%)
  • Secured Non-Convertible Debentures – Listed – 135,656 Mn (29%)
  • External Commercial Borrowings- Senior secured Notes – 73,111 Mn (16%)
  • Commercial Paper – 38,540 Mn (8%)
  • Other Loans – 9,817 Mn (2%)
  • Secured Non-Convertible Debentures (Muthoot Gold Bonds) – 2,635 Mn (1%)

 

 

Subsidiaries highlights:

 

  • Muthoot Homefin: Disbursements in FY 2021: Rs1,010 Mn. AUM as on Mar 31, 2021: Rs. 17,042 Mn, Loan Book as on Mar 31, 2021: Rs14,040 Mn, ROA for FY 2021: 0.75%, ROE for FY 2021: 2.92%
  • Belstar MFI- Book grew to Rs 33 bn from Rs 26 bn (+25% YoY); PAT has decline due to higher provisions. Stage 3 stood at Rs 0.78 bn as on Mar’21, made Rs 0.80 bn additional provision during FY21.
  • Home finance- book did not grew but this year expects good disbursal.
  • Vehicle finance- Book did not grew but they’re restarting this business from July onwards.

 

 

Domestic credit ratings:

  • long-term rating:

      CRISIL - AA + stable

      ICRA - AA + stable

  • Highest Rating among gold loan companies

 

 

 

 

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