MUTHOOT FINANCE LIMITED — Earnings Release 2022

Nov 4, 2021

November 04, 2021

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Ref: SEC/MFL/SE/2021/4119

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex Bandra (E), Mumbai - 400 051 Symbol: MUTHOOTFIN

Department of Corporate Services BSE Limited,

P. J. Tower, Dalal Street, Mumbai - 400 001 Scrip Code: 533398

Dear Sir/Madam,

Re: Press release on Un-audited Financial Results for the quarter September 30, 2021

The Board of Directors of the Company at their meeting held today i.e., November 04, 2021 has announced the Unaudited Financial Results for the quarter ended September 30, 2021.

We herewith enclose a copy of Press Release proposed to be released in leading newspapers across the country.

This is for your kind information and record thereon.

Thank You,

For Muthoot Finance Limited

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Rajesh A Company Secretary ICSI Membership No. FCS 7106

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` Kochi, November 04, 2021:

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Consolidated Loan Assets Under Management increased to Rs.60,919 crores, up by 17% YoY for H1 FY22 Consolidated Profit after Tax increased to Rs.1,981 crores, up by 11% YoY for H1 FY22 Standalone Loan Assets Under Management increased to Rs.55,147 crores for H1 FY22, up by 17% YoY Standalone Profit after tax increased to Rs.1,965 crores for H1 FY22 , up by 13% YoY

A meeting of the Board of Directors of Muthoot Finance Ltd. was held today to consider and approve the unaudited standalone and consolidated results for the quarter and half year ended September 30, 2021.

Management Quote:

While commenting on the results George Jacob Muthoot, Chairman, Muthoot Group said, “As second wave of the pandemic has ebbed and economy further unlocks, corporate India has emerged stronger and better. We were able to maintain growth momentum during the quarter with all of our branches now open for business. Our consolidated loan AUM stood at Rs.60,919 crores as of end September 2021, clocking a growth of 5% QoQ and a growth of 17% YoY despite a challenging business environment. Consolidated Profit after tax stood at Rs.1,981 crores for the half year ended September 2021, registering a growth of 11% YoY. The contribution of our subsidiaries to the overall consolidated AUM stands steady at 10%. As a responsible NBFC, we have been consistently working towards an overall growth strategy focusing on governance, performance and ESG framework.”

George Alexander Muthoot, Managing Director, Muthoot Finance said, “The demand environment remains strong and as we enter the festive season we remain optimistic about growth momentum in gold loan over the second half of FY22. We are optimistic about growing our gold loan book further and maintain 15% growth guidance for FY22. We are witnessing improved collections across Micro finance, vehicle finance and home loans. In the last quarter we had consciously decided to go slow on non-gold lending business, we continue to remain conscious and monitor the space for emerging opportunities. We will continue to follow the strategy of balanced growth while maintaining overall asset quality.”

Consolidated Results of Muthoot Finance Ltd

Muthoot Finance Ltd Consolidated Loan Assets under management grew 17% YoY to Rs. 60,919 crores as at H1FY22 as against Rs. 52,286 crores last year. During the quarter, Consolidated Loan Assets under management increased by Rs.2,784crores ie. an increase of 5% QoQ. Consolidated Profit after tax for H1FY22 grew 11% YoY to Rs. 1,981 crores as against Rs. 1,788 crores last year.

against Rs.1,788 croreslast year.
							(Rs. in Crores)
	H1 FY22	H1 FY21	YoY %	Q2 FY22	Q1 FY22	QoQ %	FY21	YTD%
GroupBranch Network(Nos.)	5,439	5,381	1%	5,439	5,443	-0.07%	5,451	-0.2%
Consolidated Gross Loan Assets of the Group	60,919	52,286	17%	60,919	58,135	5%	58,280	5%
Consolidated Profit of the Group	1,981	1,788	11%	1,002	979	2%	3,819

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Contribution in the Consolidated Gross Loan Assets of the Group
Muthoot Finance	55,102	46,678	18%	55,102	52,493	5%	52,394	5%
Subsidiaries	5,817	5,608	4%	5,817	5,642	3%	5,886	-1%
Contribution in the Consolidated Profit of the Group
Muthoot Finance	1,961	1,722	14%	992	969	2%	3,700
Subsidiaries	20	66	-70%	10	10	0%	119

Standalone Results of Muthoot Finance Ltd and its subsidiaries

Muthoot Finance Ltd (MFIN) , India’s largest gold loan company in terms of loan portfolio, registered a net profit of Rs. 1,965 crores in H1 FY22 as against Rs.1,735 crores in H1FY21, an increase of 13% YoY . The net profit stood at Rs. 994 crores in Q2FY22 as against Rs. 894 crores in Q2FY21, an increase of 11% YoY. Loan Assets stood at Rs. 55,147 crores as compared to Rs. 47,016 crores last year, registering a growth of 17% YoY. During the quarter, gold loan assets increased by Rs.2613 crores, an increase of 5%.

Muthoot Homefin (India) Ltd (MHIL) , the wholly owned subsidiary of Muthoot Finance, the loan portfolio stood at Rs. 1,640 crores for the half year ended FY2022. Total revenue for Q2 FY22 & H1 FY 22 stood at Rs. 46 crores & Rs. 92 crores. It achieved a Profit after tax of Rs. 0.23 crores & Rs. 0.71 crores in Q2FY22 & H1 FY22. Stage III Asset as percentage of Gross Loan Asset stood at 4.73 % as on September 30, 2021 as compared to 5.94% as of June 30, 2021 and net of Stage 3 ECL provisions stood at 2.77 %.

M/s. Belstar Microfinance Limited (BML) , is an RBI registered micro finance NBFC and a Subsidiary Company where Muthoot Finance holds 70.01 % stake. Loan portfolio for H1FY22 increased to Rs. 3,354 crores as against Rs. 2,687 crores last year, an increase of 25 % YoY. Total revenue for Q2 FY22 & H1 FY 22 stood at Rs. 150 crores & Rs. 302 crores. It achieved a Profit after tax of Rs. 2 crores & Rs. 4 crores in Q2FY22 & H1 FY 22. Stage III Asset as percentage of Gross Loan Asset decreased to 3.61 % as of September 30, 2021 as compared to 3.67% as of June 30, 2021 and net of Stage 3 ECL provisions stood at 1.02 %.

Muthoot Insurance Brokers Pvt Limited (MIBPL) , an IRDA registered Direct Broker in insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs. 98 crores & Rs. 159 crores in Q2FY22 & H1 FY22 . Total revenue for Q2 FY22 & H1 FY 22 stood at Rs. 10 crores & Rs. 17 crores. It achieved a Profit after tax of Rs. 5 crores & Rs. 9 crores in Q2FY22 & H1 FY 22.

Asia Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot Finance holds 72.92 % stake. Loan portfolio grew to LKR 1,457 crores as against LKR 1,298 crores last year, an increase of 12% YoY. Total revenue for Q2 FY22 & H1 FY22 stood at LKR 75 crores & LKR 143 crores. It achieved a Profit after tax of LKR 2 crores & LKR 3 crores in Q2FY22 & H1 FY 22.

Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for Cars, Two wheelers, Commercial Vehicles and Equipments. Loan portfolio stood at Rs. 282 crores for the half year ended FY 2022. Total revenue for Q2 FY22 & H1 FY 22 stood at Rs. 13 crores & Rs. 24 crores. It achieved a Profit after tax of Rs. 0.92 crores & Rs. 0.80 crores in Q2FY22

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& H1 FY 22. It’s Stage III Asset on Gross Loan Asset % as on September 30, 2021 stood at 16.95% and net of Stage 3 ECL provisions stood at 12.89%.

Other Highlights:

Innovative Digital Products:

The company has recently launched customer centric AI-powered virtual assistant Mattu. This AI-powered virtual assistant enables users to apply for loans, address queries and perform transactions like checking account balance, paying gold loan interest, availing loan top-ups, making part payments, multi-lingual support, voice search capability, and can handle more than 250 frequently asked questions.

Financial Highlights : Standalone results for Muthoot Finance Ltd.

								(Rs. i	n Crore)	n Crore)
	H1 FY22	H1 FY21	YoY %		Q2 FY22		Q2 FY21	YoY %	Q1 FY22		QoQ %
Total Income	5,548	4,970	12%		2,833		2584	10%	2,715		4%
Profit Before Tax	2,640	2,325	14%		1,340		1200	12%	1,300		3%
Profit After Tax	1,965	1,735	13%		994		894	11%	971		2%
Earnings Per Share(Basic)Rs.	48.98	43.26	13%		24.77		22.30	11%	24.21		2%
Loan Assets	55,147	47,016	17%		55,147		47,016	17%	52,614		5%
Branches	4,619	4,607	0.26%		4,619		4,607	0.26%	4,625		-0.13%
Particulars		H1 FY22		H1 FY21		Q2 FY22		Q2 FY21		Q1 FY22
Return on Average Loan assets		7.35%		8.01%		7.38%		8.10%		7.38%
Return on Average Equity		24.87%		28.02%		25.04%		28.05%		25.37%
Book Value Per Share(Rs.)		407.86		328.82		407.86		328.82		383.33

Business Highlights (MFIN):

**Business Highlights(MFIN): **
Particular	H1 FY22	H1 FY21	Growth (YoY)
Branch Network	4,619	4,607	0.26%
Gold Loan Outstanding (Rs. in Cr)	54,682	46,234	18%
Credit Losses(Rs. in Cr)	17	4	325%
% of Credit Losses on Gross Loan Asset Under Management	0.03%	0.008%	289%
Average Gold Loanper Branch(Rs. In Cr)	11.84	10.04	18%
No. of Loan Accounts(in lakh)	88	76	16%
Total Weight of Gold Jewellery pledged (in tonnes)	178	163	9%
Average Loan Ticket Size	62,054	60,642	2%
No. of employees	26,139	25,987	1%

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Our Subsidiaries:

About Muthoot Insurance Brokers Pvt Limited:

MIBPL is a wholly owned subsidiary of Muthoot Finance Ltd. It is an unlisted private limited company holding a license to act as Direct Broker from IRDA since 2013. It is actively distributing both life and non-life insurance products of various insurance companies. During Q2 FY22, it has insured more than 828,000 lives with a first year premium collection of Rs. 65 crores under Traditional, Term and Health products. The same was 807,000 lives with a first year premium collection of Rs. 73 crores in Q2 FY21 respectively.

Key Business Parameters

Key Business Parameters
				(Rs. in Millions)
Particulars	H1 FY22	H1 FY21	Q2 FY22	Q1 FY22	FY21
Total Premium Collection	1,590	1,502	984	606	4,055
No. of Policies	11,93,175	9,58,351	8,39,208	3,53,967	32,23,737
Total Revenue	169	196	101	69	467
Profit After Tax	91	133	48	43	316

About Muthoot Homefin (India) Limited:

MHIL is a Housing Finance Company registered with The National Housing Bank (NHB). It is a wholly owned subsidiary of Muthoot Finance Limited.

MHIL’s prime goal is to contribute towards financial inclusion of LMI families by opening doors of formal housing finance to them. Its focus is on extending Affordable Housing Finance. MHIL would be concentrating primarily on retail housing loans in the initial stages. It operates on a ‘Hub and Spoke’ model, with the centralized processing based out of Corporate Office at Mumbai. MHIL has operations in 14 states and 2 Union territories - Maharashtra (including Mumbai), Gujarat, Rajasthan, Madhya Pradesh, Kerala, Karnataka, Telangana, Andhra Pradesh, Haryana, Chandigarh, Uttar Pradesh, Chattisgarh, Punjab, Tamil Nadu, Delhi and Pondicherry.

MHIL has short term debt rating of ‘A1+’ for its Commercial Paper programme which indicates “Very strong degree of safety regarding timely payment of financial obligations and carry lowest credit risk” from ICRA Ltd.

MHIL has long term debt rating of CRISIL AA+/ (Stable) for its Bank Limits and Non-Convertible Debentures which indicates “High degree of safety with regard to timely servicing of financial obligations and carries very low credit risk”.

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Key Financial Parameters	Key Financial Parameters				(Rs. in Millions)	(Rs. in Millions)
	Particulars	H1 FY22	H1 FY21	Q2 FY22	Q1 FY22	FY21
	No. of branches	108	108	108	108	108
	No. of Sales Offices	108	108	108	108	108
	No. of Employees	267	280	267	260	299
	Loan Portfolio	16,405	19,377	16,405	17,048	17,042
	Capital AdequacyRatio	56%	48%	56%	53%	50%
	Total Revenue	917	1,159	457	460	2,409
	Total Expense	907	1,082	454	453	2,240
	Profit Before Tax	10	77	3	7	169
	Profit After Tax	7	57	2	5	126
	Shareholder’s Funds	4,394	4,318	4,394	4,392	4,387
	Total Outside Liabilities	10,476	13,713	10,476	11,014	12,397
	Total Assets	14,870	18,031	14,870	15,406	16,784
	Stage III Loan Assets	775	331	775	1,012	681
	% Stage III asset on Gross Loan Asset	4.73	1.71	4.73	5.94	4.00
	Stage III ECL Provision	320	281	320	309	207
	ECL Provision	372	348	372	361	261
	ECL Provision as a % of Gross Loan Asset	2.27	1.80	2.27	2.12	1.53

About Belstar Microfinance Limited (BML):

BML was incorporated in January 1988 at Bangalore and the Company was registered with the RBI in March 2001 as a Non- Banking Finance Company. The Company was reclassified as “NBFC-MFI” by RBI effective from 11th December 2013. Muthoot Finance holds 70.01 % of equity share capital in BML. BML was acquired by the ‘Hand in Hand’ group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by ‘Hand in Hand’s’ Self Help Group (SHG) program. The Company commenced its first lending operations at Haveri District of Karnataka in March 2009 to 3 SHGs, 22 members for INR 0.2million.

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In the last ten years of its operations, BML primarily relied on taking over the existing groups formed by Hand in Hand India. BML predominantly follows the SHG model of lending. Effective January 2015, BML started working in JLG model of lending in Pune district, Maharashtra.

As of September 30, 2021, BML operations are spread over 17 states and 2 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Harayana, Punjab, Jharkhand, Uttarakhand, West Bengal, Tripura, Delhi and Pondicherry). It has 653 branches, with 171 controlling regional offices and employing 5091 staff. Gross loan portfolio has grown from Rs. 0.02 crore in March 2009 to Rs.3354 crores in September 2021. For Q2 FY22, Net Profit after Tax stood at Rs. 2 crores and net worth stood at Rs.545 crores.

Key Financial Parameters				(Rs. in Millions)	(Rs. in Millions)
Particulars	H1 FY22	H1 FY21	Q2 FY22	Q1 FY22	FY21
No. of branches	653	618	653	651	649
No. of Employees	5091	4,413	5091	4651	4562
Gross Loan Portfolio	33,544	26,867	33,544	30,721	32,999
Capital AdequacyRatio	20%	27%	20%	23%	22%
Total Revenue	3016	2,491	1,501	1515	5,532
Total Expense	2975	2,107	1,479	1496	4,962
Profit Before Tax	41	384	22	19	570
Profit After Tax	42	296	22	20	467
Shareholder’s Funds	5448	5244	5,448	5,431	5,417
Total Outside Liabilities	29,593	24,300	29,593	25,832	29,256
Total Assets	35041	29,544	35,041	31,263	34,673
Stage III Loan Assets	1,210	167	1,210	1,126	783
% Stage III asset on Gross Loan Asset	3.61	0.62	3.61	3.67	2.37
Stage III ECL Provision	869	264	869	742	618
ECL Provision	1,465	462	1,465	1,273	980
ECL Provision as a % of Gross Loan Asset	4.37	1.72	4.37	4.14	2.97

About Asia Asset Finance PLC, Sri Lanka:

Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of Muthoot Finance Ltd on December 31, 2014. The company formerly known as Finance and Land Sales has been in operation for over 49 years, evolving to serve the growing needs of people of Sri Lanka.

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As on September 30, 2021, total holding in AAF by Muthoot Finance stood at 9 crores equity shares representing 72.92 % of their total capital. AAF is a Registered Financial Company based in Sri Lanka a fully licensed, deposit-taking institution registered with the Central Bank of Sri Lanka and listed in the Colombo Stock Exchange.

AAF is in lending business since 1970. At present the company is involved in Retail Finance, Hire Purchase & Business Loans and has 48 branches across Sri Lanka. It has total staff strength of 405 currently. In 2015, it entered the space of Gold Loans with assistance of Muthoot Finance.

Key Financial Parameters				(LKR in Millions)	(LKR in Millions)
Particulars	H1 FY22	H1 FY21	Q2 FY22	Q1 FY22	FY21
LKR/INR	0.371040	0.400860	0.371040	0.372288	0.367786
No. of Branches	48	30	48	48	48
No. of Employees	405	427	405	425	427
Loan Portfolio	14,569	12,982	14,569	14,289	14,002
Capital AdequacyRatio	19%	17%	19%	14%	17%
Total Revenue	1,430	1,457	752	678	2,952
Total Expenses	1,359	1,436	709	650	2,865
Profit Before Tax	71	21	43	28	87
Profit After Tax	35	1	25	10	45
Shareholder’s Funds	2,671	2,173	2,671	2,232	2,222
Total Outside Liabilities	15,038	12,476	15,038	13,829	13,128
Total Assets	17,709	14,649	17,709	16,061	15,350

About Muthoot Money Limited:

Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for Cars, Two wheelers, Commercial Vehicles and Equipments. The operations are now centered in Hyderabad. CRISIL Ltd assigned long term debt rating of AA/stable for its bank limits. As on September 30, 2021 Muthoot Money Ltd. has a total loan portfolio of Rs. 282 Crores.

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Key Financial Parameters:				(Rs. in Millions)	(Rs. in Millions)
Particulars	H1 FY22	H1 FY21	Q2 FY22	Q1 FY22	FY21
No. of branches	11	18	11	11	14
No. of employees	138	234	138	143	188
Gross Loan Portfolio	2815	4633	2815	3326	3668
Capital AdequacyRatio(%)	40	22	40	33	29
Total Revenue	238	382	132	106	697
Total Expense	228	330	119	108	656
Profit Before Tax	10	52	13	-2	41
Profit After Tax	8	48	9	-1	37
Stage III Loan Assets	477	237	477	627	314
% Stage III asset on Gross Loan Asset	16.95	5.12	16.95	18.85	8.56
Stage III ECL Provision	115	168	115	152	129
ECL Provision	150	190	150	189	172
ECL Provision as a % of Gross Loan Asset	5.33	4.10	5.33	5.68	4.69
Shareholders’ Funds	1107	1110	1107	1099	1099
Total Outside Liabilities	1738	3701	1738	2207	2789
Total Assets	2845	4811	2845	3306	3888

For further detailsplease contact:
Muthoot Finance Limited Babu John Malayil babujohn@muthootgroup.com Contact: 9446306548	Adfactors PR Poonam Saney Makhija/ Arpita Paul poonam.saney@adfactorspr.com arpita.paul@adfactorspr.com Contact: 9819004968/ 7745833256

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