Transcript of the Analyst Call on Audited financial results (Consolidated and Standalone) for the quarter and year ended March 31, 2025
Awaiting price reaction for this filing.
Muthoot Finance reported its highest ever consolidated loan AUM of Rs. 1,22,000 crore, up 37% YoY, with consolidated PAT rising 20% to Rs. 5,352 crore and standalone PAT up 28% to Rs. 5,200 crore. Gold loan AUM crossed the historic Rs. 1 lakh crore milestone at Rs. 1,02,956 crore, registering 41% YoY growth. The company declared a 260% dividend (Rs. 26 per share) and received rating upgrades from S&P (BB to BB+) and Moody's (Ba2 to Ba1), both with stable outlooks. Management guided for a minimum 15% YoY gold loan growth and committed to maintaining interest spread at 9-10%, while indicating that falling borrowing costs will be passed on to customers. Subsidiaries showed strong performance: Muthoot Home Finance AUM grew 47%, Muthoot Money AUM jumped 248% to Rs. 3,903 crore, and Belstar Microfinance posted Rs. 46 crore PAT despite sector headwinds. Key concerns discussed included new RBI draft gold lending guidelines (LTV norms), rising compliance costs, and some stress in the branch-based personal loan book.
Record AUM growth, profit expansion, credit rating upgrades, and a generous dividend reflect strong fundamentals that should support the stock, though margin pressure from compliance costs and uncertainty around new RBI gold lending guidelines remain near-term overhangs for shareholders.