Q3 2026 Muthoot Finance Ltd Earnings Call Transcript
Key Points
- Muthoot Finance Ltd (BOM:533398) achieved a historic growth in its stand-alone AUM, reaching INR50,000 crores, driven by a robust 50% year-on-year growth in the gold loan portfolio.
- The company's stand-alone profit after tax for the nine-month period grew by 91% to INR7,048 crores.
- Muthoot Home loan portfolio showed a 24% growth year-on-year, with total revenue increasing by 38%.
- Belstar Microfinance, a subsidiary, posted a significant turnaround in Q3 with a profit after tax of INR51 crores, offsetting earlier losses.
- The Reserve Bank of India's draft regulations allowing branch openings without prior permission is seen as a positive step for Muthoot Finance Ltd (BOM:533398), potentially aiding in further expansion.
- The company's new customer acquisition has not grown significantly, stabilizing around 0.4 million new customers this quarter.
- Operating expenses have been increasing, with a growth rate of 25%, attributed to rising salaries, rents, and advertising costs.
- The cost of funds has not seen a significant reduction despite a declining rate environment, as banks have not passed on the benefits of reduced MCLR.
- There is concern about the impact of gold price volatility on AUM growth, although the company maintains that demand is not solely based on gold prices.
- The company's net NPA reduction and interest recovery are partly due to legacy NPA accounts, which may not be a sustainable source of income in the long term.
Ladies and gentlemen, good day, and welcome to Muthoot Finance Q3 FY '26 Earnings Conference Call hosted by DAM Capital Advisors Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Sanket Chheda from DAM Capital Advisors Limited. Thank you, and over to you.
Yes, very good evening to all of you. We have with us the entire management team of Muthoot Finance today to discuss their Q3 results. From management side, we have Mr. George Alexander Muthoot, who is Managing Director; Mr. Alexander George, who is the Whole-Time Director; Mr. George M. Alexander, who is the wholed-time Director. Mr. George M. George, Full-time Director; George M. Jacob, whole-time Director; and Mr. Eapen Alexander, who's an Executive Director; K.R. Bijimon, Executive Director; and last, Mr. Oommen Mammen, who is CFO of the company. Without further ado, I'll hand the call over to Andy sir for the opening remarks, and we'll follow that up with question and answers.
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