Tue. Aug 11th, 2020

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Muthoot Capital Services net profit remains flat in Q1

The net profit of Muthoot Capital Services Ltd (MCSL) remained flat at ₹13.5 crore in Q1 of FY21 against ₹13.6 crore in the same quarter last year.

The total income for the quarter was at ₹131.2 crore. In view of the lockdown in several parts of the country and the company’s own conservative approach, it only disbursed two-wheeler loans amounting to ₹16.5 crore and made a total disbursement of ₹17 crore during the quarter.

The total AUM reached ₹2,474 crore at the end of the quarter, including the assigned portfolio of ₹45 crore. For the same quarter last year, the company had a total disbursement of ₹486.9 crore and AUM at the end of same quarter last year was at ₹2,760.3 crore. During the same quarter last year, the company reported a total revenue of ₹144.crore.

Thomas George Muthoot, Managing Director, said the challenging period for business is continuing. The all-round pandemic and the related lockdowns are delaying the starting of the business. While the escalated price could play a spoil sport, the need for own personal vehicle will definitely lead to more demand for two-wheelers. He said he expects things to return to normal towards the end of Q2 when the festival season begins.

Madhu Alexiouse, Chief Operating Officer, said there is improvement in collections due tocustomer connect programmes. Post the lockdown with relaxations coming into place, collections through Muthoot Fincorp branches and other online means is increasing significantly.

Vinod Panicker, Chief Financial Officer, said the company has taken a cautious approach for disbursements towards the end of Q4 with Covid-19 raising concerns. That continued in Q1 and is now being unshackled in a slow and steady manner.

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