Muthoot Capital Services Limited net increases 4 pct

The Board of Directors of the Company which met in Kochi on the 30th of January 2015 approved the unaudited financial results of the Company for the quarter and the nine months ended 31st December 2014.

The net profit increased from Rs. 514 lakhs to Rs. 534 lakhs, recording a growth of 4% in the third quarter this year, compared to the third quarter last year.

The total income of the Company increased to Rs. 4,729 lakhs during the quarter ended 31st December 2014, from Rs. 4,042 lakhs during the corresponding period last year, registering a growth of 17%.

Interest expenditure increased from Rs. 1,563 lakhs during the third quarter last year to Rs. 1,865 lakhs during the corresponding period this year, recording an increase of 19%. The total expenses during the corresponding period recorded an increase of 20%, from Rs. 3262 lakhs to Rs.3,917  lakhs .

The profit before tax recorded an increase of 4% from Rs. 780 lakhs to Rs. 812 lakhs during the corresponding period.

Considering the cumulative performance for the three quarters in the 9 months ended 31st December 2014, total income increased to Rs. 13,931 lakhs compared to Rs.11,326 lakhs during the corresponding period last year, recording a growth of 23%.

The interest expenses during the period increased from Rs. 4,247 lakhs to Rs. 5,715 lakhs, which is an increase of 35%. The total expenses rose from Rs. 8,822 lakhs to Rs. 11,487 lakhs, recording an increase of 30%. As a result, the net profit of the Company for the 9 months period remained almost stagnant at Rs. 1,614 lakhs, compared to Rs. 1,625 lakhs for the corresponding period last year.

The Company, which is engaged in two wheeler financing, has already disbursed 94,065 loans amounting to Rs. 39,300 lakhs this financial year up to 31st December 2014. The total number of borrowers as on 31st December 2014 stood at 2,68,123 and the total outstanding loan amount was Rs. 74,100 lakhs

Commenting on the performance of the Company, Thomas George Muthoot, Managing Director of the Company said: “The Company has continued to maintain the profitability in spite of adverse market conditions. The Company’s focus on providing credit to the needy in the rural and semi urban areas continues.”

R. Manomohanan, CEO said: “The Company continues to perform well, on the strength of the well laid out business practices and strategies. With the revival in the economy and the resulting increase in demand, we are confident of improving our performance in the coming months.”