Muthoot Finance Ltd (BOM:533398) Q4 2025 Earnings Call Highlights: Record Loan Growth and ...

GuruFocus News

Thu, May 15, 2025, 8:01 AM 3 min read

Release Date: May 14, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• Muthoot Finance Ltd (BOM:533398) achieved its highest-ever consolidated indebtedness magnitude of 120,000 crores arsenic of March, with a year-on-year maturation successful assets nether absorption (AUM) of 37%.

• The institution reported a consolidated nett aft taxation of 5,352 crores, marking a 20% summation year-on-year.

• Muthoot Finance Ltd (BOM:533398) declared a dividend of 260% of the look value, oregon INR 26 per equity share.

• The institution opened 850 caller branches during the year, expanding its scope significantly.

• S&P Global and Moody's upgraded Muthoot Finance Ltd (BOM:533398)'s recognition ratings, reflecting improved fiscal stableness and outlook.

• The institution faces imaginable regulatory challenges with caller draught guidelines connected golden lending, which could interaction loan-to-value (LTV) ratios and operational costs.

• There is accrued contention successful the golden indebtedness market, with much players entering the sector, which could unit margins.

• The company's recognition costs person risen, partially owed to non-gold indebtedness portfolios, which could impact profitability.

• Operational and compliance costs are expected to emergence owed to caller regulatory requirements, perchance impacting wide outgo efficiency.

• There are concerns astir the interaction of caller regulations successful regions similar Tamil Nadu, which could impact collections and operational dynamics.

• Warning! GuruFocus has detected 8 Warning Signs with BOM:533398.

Q: How does Muthoot Finance presumption golden indebtedness maturation for the upcoming year, considering the beardown show successful the past 2 years and the competitory landscape? A: Mr. George Alexander Muthoot, Managing Director, stated that the institution maintains a blimpish maturation guidance of 15% for the upcoming year, contempt achieving a 41% maturation past year. He acknowledged the expanding contention but noted that the marketplace is expanding, allowing country for maturation for some existing and caller players.

Q: What is Muthoot Finance's stance connected the draught golden lending guidelines, peculiarly regarding the Loan-to-Value (LTV) ratio? A: Mr. George Alexander Muthoot explained that the company, on with different manufacture players, has submitted suggestions to the regulator regarding the draught guidelines. The institution is acrophobic that the projected LTV changes could disadvantage NBFCs and perchance thrust customers backmost to unorganized wealth lenders. They await the last guidelines and anticipation for a solution that supports the organized sector.