Muthoot Microfin Limited — Updates, 06-02-2025: Press Release

Muthoot Microfin reported an increase in Assets Under Management (AUM) to ₹12,405 crore, marking an 8.3% growth year-over-year. Total income rose by 17.7% to ₹681 crore, driven by a 23.1% increase in net interest income (NII) to ₹420 crore. The pre-provision operating profit (PPOP) also grew significantly by 39.6% to ₹252 crore. However, the company faced a substantial drop in profit after tax (PAT), plummeting to ₹4 crore primarily due to increased provisioning costs prompted by macroeconomic uncertainties.

The total Gross Non-Performing Assets (GNPA) ratio increased to 3.03%, a rise of 74 basis points over the past year, while the borrower base gained 4.5%, reaching 34 lakh across 1,651 branches. Muthoot Microfin has demonstrated resilience by reducing lending rates and focusing on their digital channels for disbursement and collections. The company is preparing for upcoming regulatory changes and remains optimistic about achieving growth and profitability despite current challenges. Investors should monitor the company's recovery trajectory closely, given its strong fundamentals.