Muthoot Finance Reports Robust Q4 FY25 Results; Analysts Divided on Stock Prospects

1 min read     Updated on 15 May 2025, 05:51 AM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Muthoot Finance announced strong Q4 FY25 results with net profit rising 43% to ₹15.10 billion and revenue increasing 42.3% to ₹48.54 billion year-over-year. Asset quality improved with GNPA decreasing to 1.17% from 1.88% in FY24. The company maintained its 15% gold loan growth guidance for FY26. Quarterly performance showed consistent growth across key metrics. Analysts have mixed views on the stock's prospects, with some bullish and others cautious due to potential gold price fluctuations. Management expressed confidence in the company's market position and downplayed the impact of recent RBI guidelines on established players.

8814118

*this image is generated using AI for illustrative purposes only.

Muthoot Finance , a leading non-banking financial company (NBFC) specializing in gold loans, has announced its fourth-quarter financial results for the fiscal year 2025, showcasing significant growth across key financial metrics. The company has also maintained its 15% gold loan growth guidance for FY26, sparking diverse reactions from analysts.

Financial Highlights

  • Net Profit: Soared to ₹15.10 billion, marking a substantial 43% increase from ₹10.56 billion in the previous year.
  • Revenue: Rose to ₹48.54 billion, up 42.3% from ₹34.10 billion in the corresponding quarter last year.
  • Asset Quality: Improved significantly with Gross Non-Performing Assets (GNPA) decreasing to 1.17% in FY25 from 1.88% in FY24.
  • Net Non-Performing Assets (NNPA): Reduced to 0.46% from 0.57% year-over-year.

Quarterly Performance Analysis

The company's quarterly income statement reveals consistent growth:

Metric (in ₹ crore) Q4 FY25 Q3 FY25 YoY Change
Revenue 5,221.70 4,957.40 5.33%
EBITDA 3,816.50 3,633.70 5.03%
Net Profit 1,391.60 1,321.20 5.33%
EPS (in ₹) 35.36 31.67 11.65%

Year-on-Year Growth

Comparing the full fiscal year 2025 with the previous year:

Metric (in ₹ crore) FY25 FY24 YoY Change
Revenue 15,162.70 11,975.00 26.62%
EBITDA 11,518.70 9,210.10 25.07%
Net Profit 4,467.60 3,669.80 21.74%
EPS (in ₹) 107.72 89.99 19.70%

Operational Efficiency

The company's Operating Profit Margin (OPM) for Q4 FY25 stood at 72.92%, indicating strong operational efficiency despite a slight decrease from 77.18% in the same quarter of the previous year.

Analyst Perspectives

Following the Q4 results announcement, analysts have expressed divergent views on Muthoot Finance's stock prospects:

  • Bullish Outlook: Jefferies and Bernstein maintain a positive stance, citing the company's improved asset quality and growth potential.
  • Neutral Stance: Morgan Stanley remains cautious, highlighting potential risks associated with gold price fluctuations.

Management Commentary

Muthoot Finance's management has expressed confidence in the company's market position, noting an increase in market share. They also commented on recent RBI guidelines, suggesting that these regulations are primarily aimed at newer entrants in the gold loan market rather than established players like Muthoot Finance.

Conclusion

Muthoot Finance's Q4 FY25 results demonstrate the company's resilience and growth potential in the NBFC sector. The significant improvements in net profit, revenue, and asset quality reflect the company's strong business model and effective management of its loan portfolio. While analysts remain divided on the stock's future prospects, the company's maintained growth guidance and positive outlook on market share suggest confidence in its strategic direction. As Muthoot Finance continues to navigate the dynamic financial landscape, investors and stakeholders will likely keep a close watch on its future performance, strategic initiatives, and ability to manage potential risks associated with gold price movements.

Historical Stock Returns for Muthoot Finance

1 Day5 Days1 Month6 Months1 Year5 Years
-0.04%-1.85%-1.16%+19.65%+40.06%+103.63%
Muthoot Finance
View in Depthredirect
like18
dislike

Muthoot Finance Reports Strong Q4 and FY25 Results, Driven by Gold Loan Demand

1 min read     Updated on 14 May 2025, 05:40 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Muthoot Finance announced strong FY25 results with highest-ever gold loan AUM of Rs. 1,02,956.00 crores, up 41% YoY. Q4 net profit increased 42.70% to Rs. 1,508.00 crores. Asset quality improved with Gross NPA at 1.17% and Net NPA at 0.46%. The company projects minimum 15% AUM growth for FY26.

8770270

*this image is generated using AI for illustrative purposes only.

Muthoot Finance , a leading gold loan company in India, has announced impressive financial results for the fiscal year 2025 (FY25) and the fourth quarter (Q4), showcasing robust growth and improved asset quality.

Record-Breaking Gold Loan AUM and Q4 Performance

The company reported its highest-ever gold loan Assets Under Management (AUM) of Rs. 1,02,956.00 crores as of March 31, 2025. This represents a significant year-over-year growth of 41.00%, highlighting the company's strong performance in its core business segment.

In the fourth quarter of FY25, Muthoot Finance reported a 42.70% year-on-year increase in net profit to Rs. 1,508.00 crores, driven by high gold prices boosting loan demand. Standalone loan assets under management grew 43.00% to Rs. 1,09,000.00 crores. Net Interest Income rose 36.00% to Rs. 2,904.00 crores.

Improved Asset Quality

Muthoot Finance demonstrated a marked improvement in its asset quality during FY25:

  • Gross Non-Performing Assets (NPA) improved to 1.17% in FY25, down from 1.88% in FY24
  • Net NPA decreased to 0.46% in FY25, compared to 0.57% in the previous fiscal year

These improvements indicate the company's effective risk management and asset quality control measures.

Q4 Financial Highlights

The fourth quarter of FY25 saw substantial growth in both revenue and profitability:

Metric Q4 FY25 Q4 FY24 YoY Growth
Revenue 48.54 34.10 42.30%
Net Profit 15.10 10.56 43.00%

Note: All financial figures are in billions of Indian Rupees

The significant increase in both revenue and net profit demonstrates the company's strong operational performance and efficiency.

FY26 Guidance

Looking ahead, Muthoot Finance has provided guidance for the fiscal year 2026 (FY26). The company projects a minimum AUM growth of 15.00%, indicating continued confidence in its business model and market conditions.

This positive outlook, combined with the strong FY25 performance, positions Muthoot Finance for potential continued growth in the coming fiscal year.

Muthoot Finance's impressive FY25 results and optimistic FY26 guidance reflect the company's strong position in the gold loan market and its ability to capitalize on growth opportunities while maintaining asset quality.

Historical Stock Returns for Muthoot Finance

1 Day5 Days1 Month6 Months1 Year5 Years
-0.04%-1.85%-1.16%+19.65%+40.06%+103.63%
Muthoot Finance
View in Depthredirect
like19
dislike
More News on Muthoot Finance
Explore Other Articles
Century Enka Reports 37% Decline in Q1 Net Profit Amid Revenue Contraction just now
Aro Granite Industries Reports Q1 Loss of Rs 642.28 Crore Amid Revenue Decline 2 minutes ago
SRG Housing Finance Approves ₹250 Crore NCD Issuance for FY 2025-26 20 minutes ago
MOIL Implements Strategic Price Adjustments Across Manganese Ore Grades 24 minutes ago
Trishakti Electronics Secures ₹3.70 Crore Order from Reliance, Invests ₹13.50 Crores in Heavy Lifting Equipment 46 minutes ago
2,611.30
-1.00
(-0.04%)