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Muthoot Finance Ltd, India’s largest gold loan NBFC, has reported robust financial results for the quarter ended March 31, 2025, beating analyst expectations on both profit and interest income.
Profit Beats Estimates:
Muthoot Finance posted a consolidated net profit of ₹15.08 billion for Q4 FY25, exceeding the IBES consensus estimate of ₹14.91 billion. The strong bottom line reflects sustained demand for gold loans and effective cost management.
Strong Interest Income:
The company reported interest income of ₹47.84 billion for the quarter, driven by higher loan disbursements and increased gold prices, which boosted the value of collateral and loan growth.
Growth in Loan Book:
The consolidated loan assets under management (AUM) reached ₹890.8 billion as of March 31, 2025, marking a 25% year-on-year increase. Standalone AUM for Muthoot Finance grew 20% to ₹758.3 billion, underlining the company’s dominant position in the gold loan market.
Operational Performance:
Muthoot Finance achieved its highest-ever consolidated profit after tax and interest collection for the year, with an average yield of 13.87% and an interest spread of 5%. The group’s branch network expanded to 6,541 locations, a 12% rise year-on-year.
Dividend and Shareholder Returns:
The company declared its highest-ever dividend at ₹24 per equity share for FY25, reflecting confidence in its financial strength and commitment to rewarding shareholders.
Industry Context:
Muthoot Finance benefited from rising gold prices and a regulatory ban on a key competitor, which drove more customers to its platform. The company’s digital infrastructure also enabled a smooth transition for customers amid regulatory changes affecting cash loan disbursements.
Muthoot Finance’s Q4 results underscore its leadership in the gold loan segment, resilience to market challenges, and ability to deliver consistent growth and shareholder value.
Source: NDTV Profit, Muthoot Finance Q4 FY25 Financial Report, Business Standard
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