Muthoot Microfin Released Business Update: AUM and Store Network Recorded Growth

On April 08, 2024, Muthoot Microfin Limited, through an exchange filing, announced key business updates for the quarter (Q4 FY2024) and year (FY2024) ending March 31, 2024. During the said period, the company experienced substantial growth across its businesses. The company added that FY24 witnessed a healthy mix of credit expansion, rising margins and declining credit costs. In addition, the asset quality remained robust during the year ended March 31, 2024.

Assets under Management (AUM)

During FY2024, the company’s AUM rose by 32% on a YoY basis to ₹12,194 crore against ₹9,208 crore as of March 31, 2023.

Disbursement

Disbursements during the year increased by 32% Year over Year (YoY) to ₹10,662 crore from ₹8,104 crore in FY 2023. The company crossed its highest-ever disbursement in a single fiscal year.

Collection Efficiency

During FY2024, the company recorded collection efficiency as 98.4%, indicating a growth of 260 bps from 95.8% during the year that ended March 31, 2023.

Funds Raised

During FY2024, the company raised ₹9,242 crore via various instruments. In addition, Muthoot Microfin had un-availed sanctions of ₹2,112 crore. The company concluded a landmark ECB deal, raising USD 75 million (₹622 crores) from multiple international banks. The deal provides cheaper funds and also helps achieve a better asset-liability mix with a 3.3-year loan timeframe.

Network

As of March 31, 2023, the company’s total branch count stood at 1,508, which grew by 29% on a YoY basis. This is opening doors to financial inclusion and empowering lives. The company entered Telangana and expanded its footprint in many states, including Uttarakhand and Himachal.

Active Customers

The active customer count rose by 21% Year over Year, reaching 33.5 lakh customers as of March 31, 2024, against 27.7 lakh customers as of March 31, 2023. During FY2024, Muthoot Microfin added 10.0 lakh new customers.

App Downloads

As of March 31, 2024, Mahila Mitra app downloads (cumulative) have now reached 16.3 lakh customers.

Looking Ahead

For the next financial year, the company is focused on key areas, which include Assets Under

Management (AUM) Growth, Asset Quality, Digital Inclusion, Customer retention and geographic expansion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.