Muthoot Finance (MUTHOOTFIN) Q2 24/25 earnings summary

Executive summary

• Consolidated assets under management (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 growing 28% year-over-year to ₹86,164 crore.

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

• Record new gold loan customer acquisition in H1 FY25, with 996,000–966,405 new customers and highest-ever gold loan disbursements at ₹10,687 crore.

• Branch network stands at 4,855, with average gold loan AUM per branch at ₹17.75 crore.

• Subsidiaries contributed 14% to consolidated loan AUM and 8% to consolidated PAT.

Financial highlights

• Standalone loan AUM rose 31% year-over-year to ₹90,197 crore; standalone profit after tax for H1 FY25 was ₹2,330 crore, up 18% year-over-year.

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

• Earnings per share (basic and diluted) for H1 FY25 stood at ₹60.67, up 17% year-over-year.

• Credit losses for the half-year were ₹28.84 crore, representing 0.03% of gross loan AUM.

• Interest accrued outstanding as of September was around ₹1,700 crore.

Outlook and guidance

• Gold loan growth guidance for FY25 revised upward from 15% to over 25%, reflecting strong demand and performance.

• 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 and favorable economic indicators.

• Cost of borrowing is expected to remain around 9%, with potential for reduction if benchmark rates fall.

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