Capitaline

Analyst Meet / AGM 15-Jan-18

Conference Call

Muthoot Capital Services

Expects 40-50% gross AUM growth for next couple of years

Muthoot Capital Services conducted a conference call on 15 January 2018 to discuss the financial results for the quarter December 2017. Madhu Alexiouse - COO and Vinod Panicker - CFO of the compnay addressed the call:
Highlights:

The company has maintained strong performance, while recording 68% growth in net interest income (NII) to Rs 73 crore and 143% surge in net profit to Rs 15.7 crore for Q3FY2018 over Q3FY2017.
The disbursements of the company surged 68% to Rs 526 crore, which supported 53% jump in the AUM to Rs 1704 crore end December 2017. The gross AUM including managed portfolio of Rs 276 crore surged 56% to Rs 1980 crore.
The company is on track to achieve disbursement of Rs 1800 crore and gross AUM level of Rs 2000 crore by end March 2018. With AUM target almost achieved at end December 2017, the company expects to its gross AUM to touch Rs 2100 crore by end March 2018.
The strengthening of digital distribution has been major contributor to the growth of the company, while strong branch network of parent company at 3500 branches also boosted its growth.
The company has expanded its network to 15 states, while it has continued to gain market share as its growth has been substantially higher than the market growth of 13%. The company has improved its market share from 1.34% at the beginning of FY2018 to 2% end December 2017.
The company is yet to fully penetrate the branch network of parent company to support its growth, while there is 35-40% scope left to enhance penetration of parent branch network.
The company expects to continue strong growth for next couple of year and targets 40-50% gross AUM growth for next two years.
The company has nearly doubled the number of loan disbursal to 1.2 lakh per quarter from 50-60 thousands a year ago, while focusing on productivity improvement.
The company has improved opex to NII ratio to 57.1% in Q3FY2018 from 64.1% in Q3FY2017.
The credit cost has also declined to 1.8% in Q3FY2018 from 2% in Q2FY2018 as well as for Q3FY2017.
The company has substantially improved RoA to 4% in Q3FY2018 from 3% in Q2FY2018 and 2.3% in Q3FY2017. The company expects to maintain RoA above 3.25% in FY2019.
The company has reduced gross NPA ratio to 5.5% end December 2017 from 6.6% a quarter ago and 7% a year ago, despite tightening NPA recognition norms to 90 days overdue basis from 120 days overdue basis earlier. The company expects to maintain gross NPA ratio below 5% in FY2019.
The provision coverage ratio of the company stands at 29% end December 2017, while the company expects to substantially improve the same in FY2019.
The gross spreads of the company stood at 13.9% in Q3FY2018, while expects to maintain spreads at around 14%.
The company is working on launching of 2-3 new products, of which one product in the used car loan segment is expected to be launched in Q4FY2018.
The company has successfully completed its QIP of Rs 165 crore in November 2017.

Previous News

Muthoot Capital Services reports standalone net profit of Rs 14.73 crore in the June 2022 quarter
( Results - Announcements 05-Aug-22 16:33 )

Muthoot Capital Services to hold board meeting
( Corporate News - 03-Jan-23 12:54 )

Muthoot Capital Services to announce Quarterly Result
( Corporate News - 27-Jan-22 10:47 )

Muthoot Capital Services appoints director
( Corporate News - 25-Nov-21 18:33 )

Muthoot Capital Services AGM scheduled
( Corporate News - 07-Sep-22 18:11 )

Muthoot Capital Services AGM scheduled
( Corporate News - 05-Sep-20 16:15 )

Muthoot Capital Services completes transaction of Rs 140.37cr through securitization of portfolio
( Corporate News - 04-Jun-19 18:47 )

Muthoot Capital Services standalone net profit declines 14.73% in the March 2019 quarter
( Results - Announcements 24-Apr-19 17:19 )

Muthoot Capital Services standalone net profit rises 12.24% in the September 2020 quarter
( Results - Announcements 10-Dec-20 16:47 )

Muthoot Capital Services schedules AGM
( Corporate News - 05-Jun-18 11:04 )

Muthoot Capital Services net profit declines 9.42% in the March 2014 quarter
( Results - Announcements 20-May-14 08:09 )