Muthoot Microfin Reports Q2 Results with 28% QoQ Disbursement Growth

Muthoot Microfin , a leading microfinance institution in India, has reported its financial results for the second quarter, showcasing significant quarter-on-quarter improvements.

Financial Performance

Muthoot Microfin reported a net profit of ₹30.50 crores for Q2, marking a substantial increase of 393.6% sequentially from the previous quarter.

Key Financial Metrics

Metric	Q2	QoQ Change
Disbursements	₹2,273.90 crores	+28.1%
Gross Loan Portfolio	₹12,558.80 crores	+2.5%
Net Interest Margin	11.9%	+43 bps
Gross NPA	4.61%	-24 bps
Net NPA	1.41%	-17 bps
Capital Adequacy Ratio	28.91%	+106 bps

Business Highlights

The company's disbursements grew by 28.1% quarter-on-quarter to ₹2,273.90 crores. Muthoot Microfin's customer base expanded to 33.6 lakh active customers across 1,718 branches.

Asset Quality and Capital Adequacy

Muthoot Microfin reported an improvement in asset quality, with Gross Non-Performing Assets (GNPA) decreasing to 4.61% from 4.85% in the previous quarter. The Net NPA stood at 1.41%. The company's capital adequacy ratio improved to 28.91%, up 106 basis points quarter-on-quarter.

Strategic Initiatives

As part of its diversification strategy, the company has launched gold loans and micro-LAP (Loan Against Property) products. This move aims to broaden Muthoot Microfin's product offerings and enhance its market position.

Credit Rating

CRISIL has revised the outlook on long-term facilities to positive while reaffirming ratings at CRISIL A-. This revision reflects the company's improving financial profile and business prospects.

Corporate Actions

The board has approved amendments to debenture trust deed clauses and registration under Credit Guarantee Fund for Micro Units, indicating proactive measures to strengthen the company's financial structure and risk management.

Outlook

The sequential improvements and strategic initiatives suggest the company is positioning itself for growth in the microfinance sector. The management's focus on diversification and asset quality improvement is expected to support consistent growth in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.15%	+0.22%	-0.81%	+10.62%	-17.07%	-36.79%

Muthoot Microfin Limited , a prominent player in the microfinance sector, has successfully raised ₹750 crore through the allotment of non-convertible debentures (NCDs). This move, approved by the company's Debenture Issue and Allotment Committee, marks a significant step in Muthoot Microfin's financial operations.

Debenture Details

The company has allotted 7,500 rated, unsubordinated, secured, listed, taxable, transferable, redeemable NCDs through private placement. Here are the key details of the debenture issue:

Parameter	Details
Face Value per Debenture	₹1.00 lakh
Total Issue Size	₹750.00 crore
Coupon Rate	9.80% per annum
Payment Schedule	Monthly
Tenure	24 months
Maturity Date	November 4, 2027
Security	First ranking charge on identified receivables
Hypothecation Ratio	1.1 times the outstanding debenture amount

Strategic Implications

This NCD issuance falls within the limits previously approved by Muthoot Microfin's Board of Directors. The move is likely aimed at strengthening the company's financial position and potentially funding its growth initiatives in the microfinance sector.

Regulatory Compliance

In line with regulatory requirements, Muthoot Microfin has informed the BSE Limited and the National Stock Exchange of India Limited about this allotment.

Conclusion

The successful placement of these NCDs demonstrates Muthoot Microfin's ability to attract institutional investment and its commitment to diversifying its funding sources. As the microfinance sector continues to play a crucial role in financial inclusion, such capital-raising activities may help Muthoot Microfin expand its reach and impact in the future.