Muthoot Finance (MUTHOOTFIN) Q1 24/25 earnings summary

Executive summary

• Consolidated loan AUM reached ₹98,048 crore, up 28% YoY, with standalone AUM at ₹84,324 crore, both historic highs.

• Consolidated profit after tax hit a record ₹1,196 crore in Q1 FY25, a 14% YoY increase; standalone PAT was ₹1,079 crore, up 11% YoY.

• Gold loan disbursement reached an all-time high of ₹73,648 crore in Q1 FY25, with gold loan AUM up 23% YoY to ₹80,922 crore.

• Subsidiaries, including Belstar Microfinance, Muthoot Homefin, and Muthoot Money, posted strong double- or triple-digit YoY growth in AUM and profits.

• Maintained strong capital adequacy and liquidity, with a diversified funding profile and high credit ratings.

Financial highlights

• Standalone total income for Q1 FY25 was ₹37,100.98 million, up from ₹30,263.22 million in Q1 FY24; consolidated total income was ₹44,924.70 million, up from ₹35,087.00 million.

• Standalone net profit after tax for Q1 FY25 was ₹10,786.84 million, up from ₹9,751.17 million; consolidated net profit after tax was ₹11,956.64 million, up from ₹10,447.20 million.

• Interest income grew 29% YoY to ₹43,483 million; net interest margin for Q1 FY25 stood at 11.23%.

• Book value per share at ₹607.21; market price per share at ₹1,795.85 as of June 30, 2024.

• Basic and diluted EPS (consolidated) for Q1 FY25: ₹28.99, up from ₹25.46 in Q1 FY24.

Outlook and guidance

• AUM growth guidance remains at 15% for the year, with a possible revision after Q2 based on performance.

• Focus on expanding gold loan business, leveraging digital initiatives, and increasing penetration in rural and semi-urban markets.

• Subsidiaries expected to continue strong growth, especially in microfinance and affordable housing.

• Ample headroom for leveraging with capital adequacy at 27.47% and debt/equity at 2.61.