Muthoot Microfin Ltd Financial Insights and Updates

Muthoot Microfin Ltd reported a net profit of Rs 54.37 crore for the year ended March 2022, a 23% increase from the previous year.

The company's total income grew by 21% to Rs 1,444.45 crore in FY22.

Muthoot Microfin's assets under management (AUM) reached Rs 11,441 crore by the end of FY22, up from Rs 9,444 crore in the previous year.

The company's AUM growth was driven by its microfinance portfolio, which expanded by 24% to Rs 10,441 crore in FY22.

Muthoot Microfin's net interest margin (NIM) improved to 17.5% in FY22, up from 16.5% in the previous year.

The company's non-performing assets (NPAs) ratio stood at 2.5% as of March 2022, within the regulatory limit of 6%.

For more insights, see: Muthoot Finance Share Price

Muthoot Microfin has reported a steady increase in its financial performance over the years.

The company's total income has grown from ₹1,444.59 crore in 2017-18 to ₹2,046.92 crore in 2020-21, a rise of 41.7%.

Muthoot Microfin's net profit has also seen a significant jump, from ₹142.49 crore in 2017-18 to ₹245.19 crore in 2020-21, a growth of 72.1%.

In the world of microfinance, comparing the performance of different companies is crucial to make informed decisions. Muthoot Microfin's stock performance has been a mixed bag, with a 1-day return of 0.30% and a 1-week return of -0.24%.

The company's performance over the past year has been disappointing, with a return of -42.50%. However, it's essential to look at the bigger picture and consider the performance of its peers. CreditAccess Grameen, for instance, has shown impressive returns, with a 1-day return of 12.12% and a 1-year return of -34.67%.

Here's a comparison of the key ratios of Muthoot Microfin and its peers:

As you can see, CreditAccess Grameen has a higher P/E ratio and ROCE compared to Muthoot Microfin. However, it's essential to consider other factors such as revenue growth and profitability when making a decision.

The top player in the industry saw a staggering 44% net income plunge, a clear indication that their financial performance is struggling. This decline is a significant setback for the company.

Their revenue growth has been stagnant, hovering around 2% for the past two years. This lack of momentum is a major contributor to their financial woes.

The company's high operating expenses are also taking a toll on their bottom line. They've been unable to trim costs effectively, leading to a significant increase in their net loss.

Their profit margins have shrunk from 15% to 8% over the past year, a clear sign of declining profitability. This is a worrying trend for investors and stakeholders alike.

Muthoot Microfin reported a net profit of ₹ 121.47 crore in FY 2020, a decline of 11.6% from the previous year.

The company's total income stood at ₹ 1,444.41 crore, up 14.4% from FY 2019.

Muthoot Microfin's total assets grew by 24.3% to ₹ 3,644.51 crore in FY 2020, indicating a significant expansion of its lending operations.

Let's dive into the financials of this company. They reported a net income of $10 million in the previous quarter, a 20% increase from the same quarter last year.

Their revenue has been steadily increasing over the past two years, reaching $50 million in the latest quarter. This growth is largely attributed to their successful expansion into new markets.

The company's operating expenses have also been on the rise, increasing by 15% in the past quarter to $20 million. This is partly due to the hiring of new staff to support their growth.

Their cash flow has been improving, with a positive cash flow of $5 million in the latest quarter. This is a significant improvement from the previous quarter's negative cash flow of $2 million.

The company's debt-to-equity ratio has been decreasing, currently standing at 0.5. This suggests that the company is becoming more financially stable and less reliant on debt.

Technical analysis is a crucial tool for investors to make informed decisions. It helps us understand the behavior of a stock's price and identify potential trends.

The Muthoot Microfin stock doesn't have any buy/sell signals, which means we can't rely on this indicator to make a decision.

Pivot levels and average true range (ATR) are also not available for this stock. Pivot levels help us identify potential support and resistance levels, while ATR gives us an idea of the stock's volatility.

The classic pivot levels for Muthoot Microfin are not available, with all values marked as "-". Similarly, the ATR values for 5 days, 14 days, and 28 days are also not available.

Here's a summary of the pivot levels and ATR for Muthoot Microfin:

Muthoot Microfin's share price has moved up by 0.30% from its previous close of Rs 134.19, with the current price standing at Rs 134.59.

The company's share price update shows a slight increase, but it's essential to consider the bigger picture. Over the past 1 month, the share price has dropped by 17.17%. This significant decline may be a cause for concern for investors.

In terms of revenue growth, Muthoot Microfin has outperformed its 3-year CAGR of 48.03%, with a 58.02% annual revenue growth. This indicates a strong financial performance.

The company's operating expenses are substantial, with interest expenses accounting for 38.9% of its operating revenues and employee costs making up 19.76% in the year ending Mar 31, 2024.

Here's a summary of Muthoot Microfin's share price returns:

Muthoot Microfin has a significant ownership structure with the Muthoot family and Muthoot Fincorp holding a controlling stake of 71%.

Their 71% stake gives them substantial influence over the company's decisions and direction.

London-based private equity firm GPC (Greater Pacific Capital) owns 16.6% of Muthoot Microfin, while Chicago-based private equity fund Creation Investments Capital Management holds 9.3%.

Muthoot Microfin's shareholding pattern shows a consistent ownership structure. The company is predominantly owned by promoters, who hold a stake of 55.47% as of December 2024.

The promoters have maintained their stake at 55.47% since March 2024. This suggests stability in the company's ownership structure.

As of December 2024, Foreign Institutional Investors (FII) hold a significant stake of 25.79%. This is a slight decrease from the 26.28% stake they held in March 2024.

Domestic Institutional Investors (DII) hold a smaller stake of 2.42% as of December 2024. This is a decrease from the 2.35% stake they held in March 2024.

Here is a breakdown of the shareholding pattern as of December 2024:

Corporate actions are important events that can impact your investment decisions.

The Muthoot Microfin Corporate Actions section provides a list of upcoming and past events.

One upcoming event is a meeting scheduled for February 21, 2025, which was announced on January 20, 2025.

The purpose of this meeting is to consider a proposal of offer for sale (POM).

The company also holds quarterly results meetings, which are typically held in February, May, August, and November.

Here are some upcoming and past corporate actions:

These corporate actions can impact the company's financial performance and share price.

Muthoot Microfin has been serving the rural community for over two decades, with a strong presence in 13 states across India.

The company's microfinance products have helped thousands of people access credit, improve their livelihoods, and break the cycle of poverty.

Muthoot Microfin's loan book has grown significantly over the years, with a strong focus on rural areas where financial inclusion is a major challenge.

The company's loan portfolio has been steadily increasing, with a mix of group and individual loans that cater to the diverse needs of its customers.

Muthoot Microfin has also been recognized for its commitment to social responsibility, with a strong focus on financial literacy and women empowerment initiatives.

Suggestion: Bandhan Bank Loan

The company's loan officers play a crucial role in identifying and serving the needs of its customers, often visiting rural areas to provide credit and financial services.

Muthoot Microfin has been successful in creating a strong network of branch offices and outreach centers, which has enabled it to reach a wider customer base.

The company's financial performance has been robust, with a strong track record of repayment and a low default rate.

Muthoot Microfin's focus on technology and digitalization has enabled it to improve its operational efficiency and reach more customers.

The company's customer base has been steadily increasing, with a strong focus on serving the needs of small and medium-sized enterprises (SMEs) and individuals.

For your interest: Bharat Financial Inclusion