Serv­ing Un­der-served Ru­ral And Semi-ur­ban Mar­kets

Dalal Street Investment Journal - - COMMUNICATION FEATURE -

FY17 with profit af­ter tax of Rs10 crore as against PAT of Rs6 crore. The com­pany also ac­quired 100% stake in Muthoot In­sur­ance Bro­kers Pvt Limited, an IRDA reg­is­tered di­rect bro­ker in in­sur­ance prod­ucts. It gen­er­ated a first year premium col­lec­tion amount­ing to ₹70 crore dur­ing FY17, as against ₹48 crore dur­ing the pre­vi­ous year.

Dur­ing FY17, the com­pany in­creased its share­hold­ing in the hous­ing fi­nance com­pany Muthoot Homefin (India) Ltd from 79% to 88.27%. Its loan port­fo­lio in­creased by ₹409 crore at ₹441 crore. To­tal rev­enue for FY17 stood at ₹24 crore as against Rs2 crore in FY16. It achieved a profit af­ter tax of ₹2.87 crore dur­ing the FY17 as against ₹1.36 lakh.

Dur­ing the year, the com­pany in­creased its share­hold­ing in the Sri Lankan sub­sidiary - Asia As­set Fi­nance PLC. It in­creased its loan port­fo­lio by 26% at LKR 866crore in FY17. The to­tal rev­enue for FY17 stood at LKR 213crore as against LKR 139crore in FY16. It gen­er­ated a profit af­ter tax of LKR 28 crore dur­ing the year, as against pre­vi­ous year profit af­ter tax of LKR 18 crore.

Be­ing the in­dus­try leader, we have iden­ti­fied digi­ti­sa­tion is need-based, which is cur­rent and fu­ture en­vis­aged. We leave no stone un­turned to en­sure the best pos­si­ble user ex­pe­ri­ence to main­tain and in­crease our high level of cus­tomer sat­is­fac­tion. The com­pany is en­cour­ag­ing on­line gold loan, di­rect credit to cus­tomers ac­count, load­ing to pre­paid cards for dis­burse­mentof loan. For re­pay­ment, the com­pany is ac­cept­ing pay­ments through Web­pay, Muthoot App, RTGS/NEFT/IMPS fa­cil­ity. We are also ac­cept­ing cheques and drafts.

The sub­sidiari­escon­tributed about 5% of the group as­setsin FY17. The com­pany is look­ing at in­creas­ing the share of sub­sidiaries to about 10% of the group as­sets in FY18 and sub­se­quently to 20% by FY22. Dur­ing FY17, the com­pany wit­nessed 46% growth in net profit at ₹1180 crore, as against ₹810 crore in FY16. Re­tail loan AUM stood at ₹27,278crore, reg­is­ter­ing 12% growth in FY17.

Our cap­i­tal ad­e­quacy ra­tio stood at 24.88% as on FY17, as against min­i­mum CAR of 15% stip­u­lated by the RBI. Be­ing a non-de­posit tak­ing NBFC, the main source of our funds is NCDS is­sued to pub­lic/in­vestors. Dur­ing FY17, we made two NCD is­sues to­tal­ing Rs1,832 crore. Dur­ing FY18, so far we have made an NCD is­sue for Rs1,969 crore. Re­cently, our NCD in April 2017, where we raised close to ₹2000 crore, was open for a pe­riod of one month but was over­sub­scribed and closed in just two days of its launch. This demon­strates very strong in­vestor con­fi­dence for us. Go­ing ahead, we ex­pect our AUM to touch ₹45,000 crore in 5 years. We also plan to in­crease our con­cen­tra­tion by ven­tur­ing in new ge­ogra­phies in north­ern and west­ern­re­gions through branch ex­pan­sions. We are also look­ing into north-eastern re­gion very closely. Also, in FY17 our av­er­age busi­ness per branch was ₹6.3 crore, which we ex­pect it to in­crease to av­er­age of ₹15 crore per branch in the com­ing years. This will fa­cil­i­tate to achieve our AUM tar­gets. We also are very keen on op­por­tu­ni­ties for di­ver­si­fy­ing our prod­ucts.

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