The unaudited financial results of Muthoot Capital Services Limited for the quarter ended 30th June 2009 reveals substantially higher performance compared to the corresponding period last year. The results were approved in the meeting of the Board of Directors held in Kochi on 28th July 2009
The total income from operations for the Company increased from Rs 357.71 lakhs in the quarter ended 30th June 2008 to Rs 507.52 lakhs in the corresponding period this year, registering a growth of 41.88 %. However the interest expenditure increased by 61.89 % from Rs. 109.83 lakhs to Rs 176.83 compared to the corresponding period last year. Proactive measures implemented by the Company resulted in restricting the other expenditure during the period and this resulted in a Profit Before Tax of Rs 252.03 lakhs. Compared to Rs 180.98 lakhs for the corresponding period last year, the increase in Profit Before Tax is 39.26%. The net profit increased from Rs.122.17 lakhs to Rs 167.23 Lakhs, recording a growth of 36.87%.
Speaking on the future outlook of the company Mr. Thomas George Muthoot, Managing Director stated that, “We expect a good year ahead with signs of recovery in the economy as a whole. We are expecting a surge in the coming quarters with the onset of festival season in India“
Commenting on the company’s performance, Mr. R Manomohanan CEO Muthoot Capital Services limited said, “We feel happy with our performance in the first quarter of the current financial year. The stringent measures taken by the company for cost control and resources optimization are proving beneficial and we expect that it will make a positive impact on the current performance.”
The Company is maintaining its growth trajectory in operations as well as profits by increasing the exposure under the existing schemes and introducing innovative products, continuing to maintain the highest quality of the assets portfolio. The two wheeler loans offered by the Company are well received in the market. Recently the company has announced its tie up with Honda two wheelers to offer need based loan for buying two wheelers. There has been good response to the small and medium sized loans offered for traders and other businessmen. The Company plans to enhance its loans portfolio, by introducing innovative loan products. The latest addition to its loan portfolio is the scheme for financing of gold bullion. Under the scheme, the company will be extending finance to jewelers for purchase of 999 pure gold bullion from Rajesh Exports Ltd.(REL), the largest jewellery exporters from India. The gold imported by REL is sold through Muthoot Exim, the consignment agents for REL and the company will be extending finance for the purchasers of gold from Muthoot Exim.
The Company’s plans for organic growth by increasing the number of branches and adding to the portfolio of services and products are well under way. The Company is poised to increase the business levels and improve profits in the current year. The Company is going ahead with its plans to open Branches in Maharashtra, Madhya Pradesh and Gujarat to complement the existing branches in reach and business. Also, The Company is contemplating to offer the entire spectrum of capital market related products to the investing public.
About Muthoot Capital Services Ltd: Muthoot Capital Services Limited (MCSL) a part of the Muthoot Pappachan Group, is a public limited Non Finance Banking Company registered with the Reserve Bank of India and Listed on the Mumbai Stock Exchange. Established in 1994, in Kerala MCSL offers capital market solutions that include Leasing & Hire Purchase, Vehicle Loans, Bonds with cost-effective value-added services for the benefit of our customer.
About Muthoot Pappachan Group: The Muthoot Pappachan group was established in the year 1939. Since its inception, Muthoot Pappachan has grown into one of Kerala’s largest diversified corporate conglomerate with an annual turnover of Rs.20,000 crore and a loyal customer base of over one million. In the financial sector, the group’s NBFCs have adopted the Service Company Model to expand micro-finance operations and to make its services available in every nook and corner of the areas of its operations. The company uses its long standing experience and expertise in rural areas to provide cheaper finance options and to promote investment products, thereby maximizing the Return of Investment (ROI) for their customers. This presents an opportunity to serve even those customers excluded by mainstream banks.
The Financial Services division of the Group is comprised of, Muthoot Fincorp (MFL) and Muthoot Capital Services (MCSL) with over 750 full fledged branches offering various services and products.
