Muthoot Capital Services Ltd (MCSL), one of India’s fastest growing NBFCs and the listed entity of Muthoot Pappachan Group, (also known as Muthoot Blue), today announced results for the quarter ending December 31, 2018. The company posted a net profit of INR 23.3 crores, yet again demonstrating a consistent quarter and strong standing at a time of liquidity crunch in the NBFC sector and a lacklustre 2W growth in the quarter.

As per the unaudited financial results, as approved by the Board of Directors, the net profit during the quarter, increased from INR 15.7 crores to INR 23.3 crores, recording a growth of 48% from the same period last year. For the 9 Months ending Dec 2018, the Company reported a net profit of Rs 64.1 crs against Rs 32.2 crs for the same period in the last year, a growth of 99%. The total income for the quarter under review touched INR 142.3 crores, against INR 105.2 crores for the corresponding quarter of the previous year, showing a growth of 35 %. The total Income for the 9 Month period was Rs 398.6 crores as against Rs 279.3 crs in the same period last year, a growth of 43%. The company disbursed vehicle loans accounting to INR 493.1 crores  and had a total disbursement of INR 502.1 crores during the quarter. The total AUM (Assets under Management) reached INR 2595.9 crores at the end of the quarter, including the securitized portfolio of INR 438.3 crores.

Commenting on the results, Mr. Thomas George Muthoot, Managing Director, Muthoot Capital Services Limited said, “Muthoot Capital Services Ltd. has shown steady progress quarter on quarter. We have made steady progress into new areas such as Used Car Loan and will look at further bringing in new products into our portfolio over the next 12-18 months. MCSL today has a strong network across the country, owing to which we have been able to withstand  the issues that plagued the NBFC segment last quarter and the catastrophic Kerala floods that was seen in August. In view of the geographical re-risking strategy initiated about 3 years back, we grew our non-south disbursements from 20% to 37%. In the last quarter, we also saw 2 securitisations and 2 fresh sanctions coming in, and with a much better pipeline, we are hoping for an even better Q4.”

Mr. Madhu Alexiouse, Chief Operating Officer, Muthoot Capital Services Ltd. said, “The results are a clear testimony of strong business fundamentals and the growth of the auto industry in the country. We have made steady progress in the used car business, and we expect to further strengthen our focus on this in the upcoming quarter.”

Commenting on digitisation plans, Mr. Madhu Alexiouse said, “Digitisation is a key area of focus for the entire group. We launched our customer app – Mpower, in our AGM’18, and we have received an extremely positive feedback till now. We have already had more than 40,000 downloads within three months of its launch, and have collected about Rs 1 crore  as EMIs  and have seen 300 plus loan applications. This showcases the country’s increasing appetite for adopting technology, and we will continue to innovate and make our products and solutions more accessible to our customers through technology.”

MCSL’s foray in the used car business showcases the evolving aspirations of the common man and his wish to elevate in the social hierarchy. This segment, more than a lifestyle product, is a critical mobility product for the section of people we are dealing with. We feel there is a huge demand in this segment and the time is appropriate for us to create inroads in the same to empower the common man.