Muthoot Capital Services Limited — PPTs, 15-05-2025: Investor Presentation

1. Financial Highlights:

Muthoot Capital Services’ AUM rose 52% YoY to ₹3,058 Cr, with disbursements growing 84% YoY to ₹2,642 Cr. Q4 PAT was ₹5.94 Cr, and FY25 PAT declined to ₹46.31 Cr from ₹122.49 Cr due to increased loan loss provisions and portfolio adjustments. GNPA improved to 4.88% and NNPA to 2.30%. Capital adequacy remained strong at 22.36%, while debt-to-equity increased to 4.34x. Borrowing cost averaged ~9.92% against a yield of ~20.61%. CRISIL A+ rating (Stable) was maintained.

2. Strategic Initiatives & Growth Drivers:

The firm expanded into Bihar and Jharkhand, now operating in 22 states across 349 districts. Focus on retail loans, especially two-wheelers and commercial vehicles, fueled portfolio growth, with CV loans doubling YoY. Growth is supported by co-lending and dealer financing channels, aiming at deeper market penetration and faster disbursements.

3. Business Developments:

An ARC transaction worth ₹95.6 Cr in Q2 FY25 enhanced asset quality. Co-lending contributed ₹339 Cr, and 30% of sourcing came from business correspondents by Q4. Loan offerings are diversified, with a strong emphasis on vehicle financing and personal loans.

4. Market Position & Competitive Advantage:

Muthoot Capital is a leading vehicle finance NBFC with wide geographic reach and diverse products. Its robust underwriting, strong brand, and CRISIL rating reflect operational strength. Group backing and long-standing presence create a competitive edge in retail lending.

5. Investor Implications:

Strong AUM and disbursement gains indicate positive growth potential driven by expansion and product focus. Asset quality improvements and capital buffers reduce risks, though higher provisions and reduced profitability warrant monitoring. Stable credit ratings bolster confidence amidst rising borrowing costs.