Muthoot Finance share price surges over 6% post strong December quarter earnings; stock hits 52-week high

The gold loan financer reported a 21.4% rise in its consolidated net profit during the third quarter of the current financial year to ₹1,392 crore, as against Rs 1,145 crore in Q3 FY24. 

During the intraday trade, shares of Muthoot Finance were up 6.58% at ₹2,324.7 apiece on BSE. The company touched its 52-week high of ₹2,335 during the day.

The company's total revenue from operations also increased by 36% to ₹5,189 crore, compared to ₹3,820 crore during the corresponding quarter last fiscal. The company's consolidated loan assets under management grew by 34% from ₹82,773 crore last financial year to ₹111,308 crore during the quarter under review.

Muthoot Finance’s consolidated loan assets under management (AUM) grew 34% year-on-year (YoY) to ₹1,11,308 crore as at 9M FY25 as against ₹82,773 crore last year.

Its net interest income (NII) in Q3FY25 increased 42.8% to ₹2,721.4 crore from ₹1,905.7 crore, year-on-year (YoY). Calculated net interest margin (NIM) expanded by 69 basis points (bps) YoY and 9 bps quarter-on-quarter (QoQ) to 11.6%.

Credit costs stood at 0.89% in Q3FY25 as against 0.94% in Q2FY25 and 0.08% in Q3FY24.

Muthoot Finance’s disbursements during the reporting quarter stood at ₹350.8 crore while assets under management (AUM) were at ₹2,719.6 crore as of December 31, 2024. The company’s loan book stood at ₹2,352 crore as of December 31, 2024.

"We are pleased to report another strong quarter, building on our robust performance trajectory. The surge in gold loan advances reflects not only the trust our customers place in us but also the resilience of India's economic momentum. Among our subsidiaries, we have witnessed growth in our housing finance arm disbursing ₹880 crore in 9M FY25, up from ₹493 crore last year. We have tempered disbursements in response to challenges faced in the microfinance sector, and our focus continues to be on strengthening collections and enhancing the quality of loan book,” said George Alexander Muthoot, Managing Director, Muthoot Finance.

“We are closely monitoring the industry situation, and we see this as a transitionary issue, and expect it to get to be resolved in the next couple of quarters. The expansion of our branch network and the increasing adoption of digital platforms have further strengthened customer engagement, with a significant portion of transactions now being facilitated through digital channels,” Alexander further said.