Muthoot Finance Q4FY23 PAT flat at Rs974 crore on higher impairment charges in the quarter

Muthoot Finance reported flat revenues for the March 2023 quarter on consolidated basis at Rs3,298cr. Revenues were up 8.84% sequentially. For the quarter the company reported growth in interest income but that was offset by higher interest outflows too. On the top line, the company also reported higher earnings from gains on fair value changes and from derecognition of financial instruments.

For the quarter, the interest costs are higher but the impairment charges for the quarter are also higher. The quarter also saw a 20% spike in manpower charges which also put pressure on the profits of the company for the quarter. Demand for gold loans remained robust as holders of gold did try to leverage on the high prices of gold in India.

Financial highlights for Mar-23 compared yoy and sequentially

 Muthoot Finance    

Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income (Rs cr)

₹ 3,298

₹ 3,041

8.46%

₹ 3,030

8.84%

Operating Profit (Rs cr)

₹ 1,355

₹ 1,352

0.23%

₹ 1,249

8.46%

Net Profit (Rs cr)

₹ 974

₹ 997

-2.36%

₹ 928

4.94%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 24.25

₹ 24.84

 

₹ 23.11

 

OPM

41.08%

44.45%

 

41.22%

 

Net Margins

29.51%

32.78%

 

30.61%

 

 

Operating profits were flat for the quarter while the net profits were marginally lower on a yoy basis. Operating margins tapered from 44.45% to 41% while the net margins fell from 32.8% to 29.5%. The company has also declared an interim dividend of Rs22 per share, which is subject to the approval of shareholders.

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