Muthoot Finance Q4 Results Review - Gold Loan Growth Accelerates; Yield Expansion Boosts NIM: Motilal Oswal

Motilal Oswal Report

Muthoot Finance Ltd. Q4 FY24 performance was characterized by:

1. gold loan growth of ~18% YoY to ~Rs 729 billion;

2. Net interest margin expansion of ~75 basis point QoQ to 11.9%; and

3. the rise in gold tonnage by ~2% QoQ to 188 tons.

Q4 profit after tax grew 17% YoY and 3% QoQ to ~Rs 10.6 billion (in line), while FY24 profit after tax grew 17% YoY to Rs 40.5 billion.

Net total income grew 14% YoY to ~Rs 22 billion (8% beat), and pre-provision operating profit grew 17% YoY to ~Rs15.1 billion (9% beat).

Gold loan growth was supported by gold tonnage growth, along with an increase in the customer base by ~2% QoQ to ~5.7 million. Higher gold prices during the quarter resulted in LTV declining ~2pp QoQ to ~63%

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