Muthoot Finance (MUTHOOTFIN) Q2 24/25 earnings summary

Executive summary

• Consolidated loan AUM reached ₹1,04,149 crore as of September 30, 2024, up 31% year-over-year, with standalone AUM at ₹90,197 crore and gold loan AUM at ₹86,164 crore, marking 28% year-on-year growth in the core gold loan portfolio.

• Consolidated profit after tax for H1 FY25 was ₹2,517 crore, up 18% year-over-year, with standalone PAT at ₹2,330 crore.

• Record new customer acquisition with 996,000–966,405 new gold loan customers in H1 FY25, supported by digital initiatives.

• Branch network stands at 4,855, with an average gold loan AUM per branch of ₹17.75 crore and 97 lakh loan accounts.

• Subsidiaries contributed 14% to consolidated loan AUM and 8% to consolidated profit after tax.

Financial highlights

• Interest income for H1 FY25 was ₹91,298 million, up 33% year-over-year; finance cost rose 32% to ₹34,015 million.

• Gold loan portfolio grew by 18% to ₹13,285 crore; gold loan outstanding at ₹86,164 crore.

• Belstar Microfinance AUM grew 22% year-over-year to ₹9,625 crore, with revenue up 47% and PAT at ₹142 crore.

• Muthoot Homefin AUM grew 51–55% year-over-year to ₹2,441 crore, with loan disbursement up 90% and PAT at ₹17 crore.

• Muthoot Money AUM up 259% year-over-year to ₹2,265 crore; reported a loss after tax of ₹52 million for H1 FY25.

Outlook and guidance

• Gold loan growth guidance for FY25 revised upward from 15% to over 25%, driven by strong demand and favorable market conditions.

• Focus remains on gold loans, digital expansion, and leveraging strong capital base for further growth.

• Management expects continued growth in gold loans due to tightening in unsecured lending by other NBFCs and fintechs.

• Home loans identified as the second key growth area, with plans to double the book in the next two to three years.

• Opportunities identified in affordable housing, microfinance, and underserved rural markets.