Mumbai: Muthoot Capital Services Ltd., the BSE listed NBFC of the 128 year old Muthoot Pappachan Group, today announced its audited financial results for the quarter and year ended 31st March 2015. The Company engaged in two wheeler financing has achieved substantial increase in revenue in spite of the adverse market conditions and managed to register increase in net profits in spite of the increasing expenses. The audited financial results of the Company for the quarter and year ended 31 March 2015 were approved by the Board of Directors of the Company in the meeting held in Kochi on 25th May 2015. The Board has also recommended dividend of Rs. 5 for every share of Rs. 10 (50%), for the year ended 31 March 2015.
For the year ended 31 March 2015, the total Income of the Company registered a growth of 20%, from Rs. 158.76 crores during the previous year to 191.28 crores in the current year. Commensurate with the increase in operations, the interest expenses increased by 27% to Rs 76.77 crores from Rs. 60.44 crores in the last year. On account of the substantial increase in manpower and infrastructure to support the enhanced level of activities, the operational expenses during the corresponding period recorded an increase of 24%, from Rs. 64.73 crores to Rs. 80.35 crores. As a result, the profit before tax of Rs. 34.16 crores for the year was 2% higher than the figure of Rs. 33.59 crores for last year. The net profit of the Company for the year ended 31 March 2015 at Rs. 22.29 crores was slightly better than Rs. 22.21 crores recorded for the previous year.
During the quarter ended 31st March 2015 the total Income for the Company increased to Rs. 51.97 crores from Rs. 45.50 crores during the corresponding quarter last year, registering a growth of 14%. Finance expenses during the period increased only by 9% from Rs. 17.97 crores to Rs. 19.62 crores. However, operational expenses increased from Rs. 18.99 crores to Rs. 22.63 crores, recording an increase of 19%. The profit before tax during the corresponding period increased by 14% from Rs. 8.54 crores to Rs.9.72 crores. However, due to increased incidence of tax, the net profit increased to Rs.6.15 crores, compared to Rs. 5.96 crores in the corresponding quarter in the previous year, recording a growth of 3%.
Compared to the immediately preceding quarter ended 31 December 2014, the gross revenue for the quarter ended 31 March 2015 increased by 9% from Rs.47.29 crores to Rs. 51.97 crore. The expenses during this period increased from Rs. 39.17 crores to Rs. 42.25 crores, recording an increase of 8%. As a result, the net profit of Rs. 6.15 crores for the quarter ended 31st March 2015 was higher by 15% compared to the net profit of Rs. 5.34 crores for the quarter ended 31st December 2014.
The Company has been expanding its activities in the five South Indian States and Goa, Maharashtra and Gujarat under two wheeler financing segment. The Company was able to disburse 1,38,832 loans in the year 2014-2015 amounting to Rs 592 crores. The total number of two wheeler and three wheeler loans disbursed by the company so far in the last seven years has crossed 4,90,000 by 31.03.2015. The outstanding loan amount increased from Rs 692 crores as on 31-03-2014 to Rs 840 crores as on 31-03-2015. The total number of borrowers of the Company as on 31 March 2015 was in excess of three lakhs.
The Company is introducing innovative products under the Automobile Finance Segment including specialized products for scooters and women borrowers. The Company expects very good response to these products from the market.
“The Company continues to focus on providing value creation for all the stakeholders namely the shareholders, employees and above all the customers, by providing financial services solutions suiting the market needs, upholding the highest values in professional management” said Mr. Thomas George Muthoot, Managing Director.
“The Company is committed to meeting the needs of the market under two wheeler finance sector and is aiming to become the leading player in the segment in South India by March 2017” said Mr. R. Manomohanan, Chief Executive Officer.