Muthoot Microfin Limited — Earnings Release 2024

Jan 29, 2024

Administrative Office

5th Floor, Muthoot Towers, M.G. Road, Ernakulam-682035 Phone: 0484 4277500 I Email: info@muthootmicrofin.com Website: www.muthootmicrofin.com CIN: U65190MH1992PLC066228

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To

National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex, Bandra (East) Mumbai - 400051 Symbol: MUTHOOTMF

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400001 Scrip code: 544055

Dear Sir/Madam,

Sub.: Press Release

Pursuant to Regulation 30 of SEBI (Listing Regulations and Disclosure Requirements), 2015, we hereby submit the Press Release on the Unaudited Financial Results for the third quarter and nine months ended December 31, 2023. The same is also available on the website of the company at www.muthootmicrofin.com

Please take the same on record.

Thanking you,

Yours Truly

For Muthoot Microfin Limited

NEETH Digitally signed by NEETHU AJAY Date: 2024.01.29 U AJAY 21:27:28 +05'30'

Neethu Ajay Company Secretary and Chief Compliance Officer

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Muthoot Microfin Limited: Third Quarter FY23-24 Results

Gross Loan Portfolio of Rs. 11,458.14 crore, up 38.64% YoY Pre-provision Operating Profit of Rs. 182.31 crore, up 71.97% YoY Profit after Tax of Rs. 124.57 crore, up 119.06% YoY ROA of 4.47%, ROE of 25.97%, GNPA of 2.29%, NNPA of 0.33%

Mumbai, 29th January 2024: Muthoot Microfin Limited ( NSE: MUTHOOTMF, BSE: 544055), among India’s leading Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), focused on providing micro-loans to women entrepreneurs with a focus on rural regions of India, today announced its unaudited and limited reviewed financial performance for the third quarter and nine months of the financial year 2023-24.

Business Highlights: Q3 FY24

• GLP grew by 38.64% YoY from Rs. 8,264.59 crore to Rs. 11,458.14 crore

• Borrower base grew by 26.67% YoY from 25.88 lakhs to 32.78 lakhs across 1,424 branches. The branch count grew by 30.88% YoY

• Collection Efficiency of 98.44%.

Financial Highlights: Q3 FY24

• Total income increased by 52.61% YoY from Rs. 383.21 crore to Rs. 584.83 crore

• Net interest income (NII) increased by 53.07 % YoY from Rs. 224.13 crore to Rs. 343.07 crore

• Pre-provision operating profit (PPOP) increased by 71.97 % YoY from Rs. 106.01 crore to Rs. 182.31 crore

• Impairment of financial instruments increased by 44.46% YoY from Rs. 36.32 crore to Rs. 52.46 crore.

• The GNPA of the Company is at 2.29% as against GNPA of 3.49 % a year ago, NNPA stood at 0.33% as against 0.97% last year. The GNPA improved by 120 bps and NNPA by 64 bps

• Profit After Tax (PAT) increased by 119.06% YoY from Rs. 56.86 crore to Rs. 124.57 crore

• Robust liquidity of Rs. 1,179.19 crore of unencumbered cash and cash equivalents, 10.52 % of the total assets alongside unutilized sanctions totalling Rs. 2,002 crores.

• Healthy capital position with a CRAR of 29.57%

• Credit Rating : A+/Stable and grading M1C1 by CRISIL.

• 26.28% of our collections are via digital channels such as UPI/Customer App, while 100% disbursements are entirely executed digitally.

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Key Metrics: Q3 FY24

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|Particulars|Q3 FY24|Q3 FY23|YoY%|
|Gross Loan Portfolio (Rs. Cr)|11,458.14|8,264.59|38.64%|
|Borrowers (Lakh)|32.78|25.88|26.67%|
|Branches (No.)|1,424|1,088|30.88%|
|Particulars (Rs. Cr)|Q3 FY24|Q3 FY23|YoY%|
|Net Interest Income (NII)|343.07|224.13|53.07%|
|Pre-Provision Operating Profit (PPOP)|182.31|106.01|71.97%|
|Profit After Tax (PAT)|124.57|56.86|119.06%|

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|---|---|---|---|
|Key Ratios|Q3 FY24|Q3 FY23|YoY%|
|Net Interest Margin (NIM)|12.60%|11.74%|+86 bps|
|Cost/Income Ratio|48.66%|53.61%|-495 bps|
|Opex/GLP Ratio|6.07%|6.31%|-24 bps|
|Gross NPA|2.29%|3.49%|-120 bps|
|Net NPA|0.33%|0.97%|-64 bps|
|Return on Assets (ROA)|4.47%|2.92%|+155 bps|
|Return on equity (ROE)|25.97%|16.40%|+957 bps|

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Commenting on the performance:

Mr. Thomas Muthoot, Managing Director of Muthoot Microfin, said-

"We are delighted to announce yet another quarter of strong financial performance. The company’s balance sheet has grown over 12% q-o-q and 49% y-o-y to ₹112,049.2 million, with active customers number growing by 27% y-o-y to 3.28 million as of December 31, 2023. Our focus on expanding operations, coupled with a robust risk management framework has enabled us to grow at a good and sustainable pace. As we look ahead, we are confident in our ability to sustain this momentum and contribute to the economic well-being of the communities we serve. With a commitment to serving customers in new geographies, the company is set to embark on a strategic expansion plan in the coming months.”

Mr. Sadaf Sayeed, CEO, Muthoot Microfin, said-

"Our dedication to providing innovative and tailored financial solutions with technological advancements have been instrumental in achieving these commendable results. Our assets under management have grown 5% q-o-q and 39% y-o-y to ₹114,581.37 million, with PAT soaring by 119% y-o-y to ₹1,245.7million for the Quarter ending December 2023. Our digital collection is growing steadily with 26.28 percent of overall collections, a 7 percent q-o-q and 5% y-o-y growth. The improved NPA figures (NNPA of 0.33%) underscore our commitment to maintaining a healthy loan portfolio. All the key indicators are showing tremendous growth and the macro-economic outlook of the country is favourable to the industry for us to sustain this growth rate."

About Muthoot Microfin Limited

Muthoot Microfin Ltd. is a part of Muthoot Pappachan Group (also known as Muthoot Blue). It has inherited values, principles of integrity, collaboration, and excellence to take forward the legacy of 133+ years. The microfinance operations of the Company are designed to promote entrepreneurship among women and inclusive growth. It provides financial assistance through micro loans such as income generating loans to women engaged in small businesses. It is involved in delivering financial services to masses including underprivileged and disadvantaged people, living in the rural sectors of the Indian society at affordable terms, in quick turnaround time and with hassle-free processing is the aim of our financial inclusion drive. The Company has 3.28 million active customers served through 1,424 branches spread across 18 states and 346 districts.

For more information, please contact:

Ms. Neethu Ajay Mr. Amit Sharma Muthoot Microfin Ltd. AdfactorsPR Pvt. Ltd. Email: info@muthootmicrofin.com Email: amit.sharma@adfactorspr.com www.muthootmicrofin.com https://www.adfactorspr.com/

Caution Concerning Forward- Looking Statements: This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.