India’s Muthoot Finance beats profit view on strong demand for gold loans, ET BFSI
– Muthoot Finance, India’s largest gold-loan supplier, reported a bigger-than-expected third-quarter revenue on Wednesday, aided by robust loan demand.
The corporate’s quarterly revenue rose 33% to 13.63 billion rupees ($156.9 million) within the quarter ended December 31.
Analysts, on common, had estimated a revenue of 13.22 billion rupees, in response to knowledge compiled by LSEG.
Gold prices hit a number of file highs throughout the quarter. This advantages gold financiers as increased costs imply one can get an even bigger mortgage for a similar quantity of gold.
Moreover, analysts mentioned that as unsecured lending continued to gradual resulting from rising dangerous loans, individuals started shifting in direction of gold loans instead supply of funds.
Muthoot’s standalone mortgage property beneath administration had been 974.87 billion rupees as of December 31, increased by 37% year-on-year.
The corporate’s curiosity revenue rose 40% to 43.69 billion rupees.
Smaller rival Manappuram Finance will report its third-quarter outcomes on Thursday.
Shares of Muthoot Finance ended 0.2% decrease forward of the outcomes.
($1 = 86.8925 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Enhancing by Savio D’souza and Mrigank Dhaniwala)
