Muthoot Finance Q3 Results: Net Profit Surges 22% to ₹1,392 Crore and Growth & Market Insights
Business and Industry Overview:
Muthoot Finance Limited is India’s largest gold loan non-banking financial corporation. It offers services like financing gold loans, insurance, housing loans, SME loans, and money transfer services. It is a gold financing company that provides loans against gold jewellery as collateral. The company is headquartered in Kochi, Kerala, and has over 5000 branches throughout the country. Outside India, Muthoot Finance is established in the UK, the US, and the United Arab Emirates. The company falls under the brand umbrella of the Muthoot Group. Its stocks have been listed on the BSE and NSE since its initial public offering in 2011. The target market of Muthoot Finance includes small businesses, vendors, farmers, traders, SME business owners, and salaried individuals.
Non-Banking Financial Companies (NBFCs) have witnessed significant growth in India’s financial ecosystem, playing a crucial role in credit expansion and financial inclusion. Their market share in credit distribution increased from 12% in 2008 to 18% in 2019, before slightly declining to 16% in 2022 due to increased competition from banks. Muthoot Finance is a leader in the microfinance landscape in India.
Latest Stock News:
Muthoot Finance reported a net profit of ₹1,363 crore for the third quarter of FY25, reflecting a growth of 32.7% compared to ₹1,027.3 crore during the same period last year. Following the announcement of these strong Q3 results, Muthoot Finance’s share price surged over 5% in early trading on 13 February 2025. The shares rallied by as much as 6.45%, reaching a fresh 52-week high of ₹2,321.80 on the BSE.
The company’s significant net profit growth was driven by robust loan growth and margin expansion. Additionally, Muthoot Finance reported its highest-ever consolidated loan assets under management (AUM) at ₹1.11 lakh crore as of December 31, 2024. During the quarter, the consolidated loan AUM increased by ₹7,159 crore, representing a 7% quarter-on-quarter growth.
Segmental information
- Gold loans: It offers gold loans at low interest rates to its customers.
- Housing finance: It offers housing finance options to its customers.
- Personal loans: It offers personal loans.
- Wealth management: It offers wealth management solutions.
- Money transfer: It offers money transfer services.
- Insurance broking: It offers insurance broking services.
- Microfinance: It offers microfinance services.
Subsidiary Information:
Muthoot Money Ltd. (MML) became a wholly owned subsidiary of Muthoot Finance Ltd. in October 2018. MML is a Reserve Bank of India (RBI) registered Non-Banking Finance Company primarily engaged in providing gold loans.
Muthoot India Brokers Pvt Ltd (MIBPL) also became a wholly owned subsidiary of Muthoot Finance Ltd in September 2016. MIBPL is an unlisted private limited company that has held a Direct Broker license from the Insurance Regulatory and Development Authority (IRDA) since 2013.
Asia Asset Finance PLC (AAF) in Colombo, Sri Lanka, became a foreign subsidiary of Muthoot Finance on December 31, 2014. As of December 31, 2024, Muthoot Finance holds 91 million equity shares in AAF, representing 72.92% of the company’s total capital. The loan portfolio stands at LKR 28,404 million as of December 31, 2024.
Muthoot Homefin (India) Limited is a Housing Finance Company registered with the National Housing Bank (NHB). It became a wholly owned subsidiary of Muthoot Finance Ltd. in August 2017.
Q3 Highlights
- Muthoot Finance reported a 32.7% YoY increase in Q3 FY25 net profit to ₹1,363 crore.
- Following the results, the stock surged over 5%, reaching a 52-week high of ₹2,321.80.
- The company’s loan AUM hit ₹1.11 lakh crore, its highest-ever level.
- The loan AUM grew by ₹7,159 crore (7% QoQ) in Q3 FY25.
Financial Summary:
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 3,168.00 | 4,423.00 | 10,515 | 12,635 |
| Expenses | 566.00 | 913 | 2,110 | 2,513 |
| EBITDA | 1,390 | 1,863.00 | 4,696.00 | 5,455.00 |
| OPM | 44% | 42% | 45% | 45% |
| Other Income | 8 | 8 | 29 | 59 |
| Net Profit | 1,027.00 | 1,363.00 | 3,474 | 3,474 |
| NPM | 32.42 | 30.82 | 33.04 | 27.50 |
| EPS | 25.59 | 33.95 | 86.52 | 100.87 |