Q1 2027 Muthoot Capital Services Ltd Earnings Call Transcript
Key Points
- Muthoot Capital Services Ltd (BOM:511766) received a CRISIL rating upgrade to AA- stable, enhancing its ability to access diversified sources of capital at competitive prices.
- The company crossed INR100 crores in its public deposit franchise, indicating a stable and diversified funding base.
- There was a significant improvement in asset quality, with GNPA levels reducing to 3.94%, a decline of 182 basis points year-on-year.
- The company is heavily investing in AI-driven technology, which has improved collection efficiency and operational processes.
- Muthoot Capital Services Ltd (BOM:511766) reported a healthy portfolio yield of about 21% and is focusing on high-quality retail book growth.
- The company's growth in the two-wheeler segment was only 6%, which is below the industry growth of 14%.
- Credit acceptance ratios were kept moderate, with only 35% to 40% of cases approved, potentially limiting growth.
- The co-lending portfolio has significantly declined, with zero incremental business from co-lending, impacting overall disbursement numbers.
- The company has undertaken ARC deals to manage GNPA, indicating challenges in recovering from certain asset pools.
- Despite improvements, the company's ROA is currently at 1%, below the target of 2.5% for the financial year.
Ladies and gentlemen, good day, and welcome to Muthoot Capital Services Limited Q1 FY27 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I would now like to hand over the call to Mr. Maneet Khimawat from Elara Securities. Thank you, and over to you, Mr. Khimawat.
Thank you. Good morning, everyone. On behalf of Elara Securities, we welcome you all to the Q1 FY27 earnings conference call of Muthoot Capital Services Limited. From the management today, we have with us Mr. Mathews Markose, CEO; and Mr. Ramandeep Gill, CFO.
I now hand over the call to the management for their opening remarks. Thank you, and over to you, sir.
Thank you, Maneet. Good morning, everyone, and thank you for joining us today. On behalf of Muthoot Capital Services, let me extend a very warm welcome to all our shareholders, analysts, investors and members of the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
