Muthoot Microfin reports 27% jump in Q4 PAT at ₹120 crore

Muthoot Microfin, the microfinance division of the Muthoot Pappachan group, reported a 27% year-on-year (YoY) increase in net profit at ₹119.76 crore for the fourth quarter of fiscal year 2024.

The company registered an 18% rise in disbursements at ₹2,887.9 crore. Additionally, its assets under management (AUM) rose by 32.4% YoY to ₹12,193.5 crore.

During the March quarter, the firm’s net interest income (NII) rose 47% to ₹400 crore. The pre-provision operating profit (PPOP) rose 62.66% YoY to ₹244.14 crore.

Asset quality improved with the gross non-performing asset (GNPA) ratio coming in at 2.29%, down from 2.97% a year ago. Similarly, the net non-performing asset (NNPA) ratio stood at 0.35%, down from 0.6% last year.

For the fiscal year 2024, the company reported a 58% rise in its total income at ₹2,285.49 crore. Net interest income (NII) increased 55.66% YoY from ₹874.40 crore to ₹1,361.10 crore. The firm’s net profit increased 174.32% YoY to ₹449.58 crore.

The company forayed into Telangana and now operates in 19 states with 353 districts. Its borrower base grew by 20.92% YoY to 33.53 lakh across 1,508 branches. The branch count grew 28.67% compared to the same period a year ago, it said.

Thomas Muthoot, Managing Director at Muthoot Microfin, said the firm’s scale will allow greater operating efficiencies, and believes that stable NIMs and robust asset quality give the firm several reasons to believe its performance will continue to improve.

“Our return on assets (RoA) doubled to 4.19% in FY24 and the quarter was the fifth straight quarter of RoA remaining above 4%. Our return on equity (RoE) has surpassed our annual guidance led by significantly improved profitability as we continue to deliver outsized returns to our shareholders,” he added.

Shares of the company have lost over 4% since the beginning of the year. The stock has fallen over 8% in the last one year.