Muthoot Finance falls 7% post Q4 results

Shares of Muthoot Finance have fallen 7% to Rs 389 per share on the market in early morning trade after the company reported 8% year on year (YoY) decline its standalone revenue from financing segment at Rs 15.73 billion in March quarter (Q4FY18). It had revenue from financing segment of Rs 17.10 billion in year ago quarter.

Total revenue including other income fell 6% to Rs 16.08 million from Rs 17.13 billion in the corresponding quarter of previous fiscal.

Despite single digit growth in its gold loan portfolio, Muthoot Finance reported 40% YoY growth in net profit at Rs 4.5 billion, largely on the back of financial leverage.

Net NPA increased from 4.93% in Q3FY18 to 6.16% in Q4FY18. Generally NPA will not result into bad debts as collateral can be auctioned, Muthoot Finance said in a press release.

Gross non-performing assets (GNPAs) increased from 5.62% in December 2017 quarter to 6.98% in March 2018, largely on account of migration to 90dpd & shifting to borrower wise NPA classification, analysts at Antique Stock Broking said in result review.