MUTHOOT CAPITAL SERVICES' FY'24 STRONG, DESPITE Q3 PROFIT FALL

Leading vehicle financier Muthoot Capital Services, belonging to the Muthoot Pappachan Group, continued to show strong performance in the third quarter of FY24, with its total Assets Under Management (AUM) touching Rs 1,944 crore, with a Q3 loan disbursal of Rs 479 crore which had crossed pre-Covid levels. While the Q3 net profit dipped to Rs 10.26 crore compared to the Rs 19.66 crore in Q3 of FY23, its net profit for the nine-month period (April to December 31, 2023), increased 110% to Rs 110.97 crore against Rs 52.72 crore in the same period a year earlier. Muthoot Capital Services has both improved operational and collection management systems and has a new loan origination and credit administration norms and an end-to-end digitized workflow to enable faster disbursements of auto, EVs, and used car loans.

Its recovery is also strong, thus ensuring NPA levels being effectively contained. With the vehicle loan industry also showing an upward trend, and a Rs. 1.5 lakh crore funding gap existing between NBFCs and banks, industry body estimates show the demand for financing in the auto segment will increase substantially going forward.

Muthoot Capital Services, with pan-India presence and a network of 350 branches and strong digital capabilities, continues to enhance two-wheeler and corporate loans, especially to MSMEs.