DSIJ.in JULY 10 - 23 , 2017 I DALAL STREET INVESTMENT JOURNAL (^57)
M
uthoot Finance Ltd is India’s largest gold
financing company in terms of loan portfolio.
Muthoot Finance, with over 4,250 branches
across India, is engaged in providing loans
against collateral of gold jewellery.
On the financial front, Muthoot Finance’s revenue increased
17.47 per cent to 5,639.55 crore in FY17 as compared to the previous fiscal. The company’s operating profit rose 17.38 per cent to4,263.04 crore in FY17 on a yearly basis. Its profit after
tax also increased 45.78 per cent to 1,179.83 crore in FY17 as compared to previous financial year. On a segmental basis, the company derives about 52 per cent of its loan portfolios from the southern India, followed by northern India contributing about 23 per cent. The eastern India operations of the company has the least involvement in gold financing with only 7 per cent contribution. The favourable regulatory environment for the company coupled with the rising gold prices is expected to boost the growth of the company and result in the growth of AUM. A trend of increasing recoveries and auctions is further likely to boost the financial performance of the company. The company is also likely to witness a substantial hike in its NIM on the increasing yield and an optimised infrastructure. B ajaj Finserv, a part of the Bajaj Holdings & Investments Ltd, is a prominent financial services company engaged in lending, asset management, wealth management and insurance. On the financial front, Bajaj Finserv’s revenue decreased 36.49 per cent in FY17 as compared to the previous fiscal, yet its revenue remained positive at153.90 crore. The company’s operating
profit also declined 46.25 per cent to 105.46 crore in FY17 on a yearly basis. Its profit after tax decreased 57.08 per cent to70.02 crore in FY17 as compared to the previous
financial year.
Despite a negative undertone in financial performance, the
company is expected to extensively recover in the current fiscal
with the growth in CD financing resulting in a consecutive
growth in the CF segment.
The expected growth in life insurance segment is also likely to
enhance the performance of the company. The markets have
witnessed a consistent growth in the performance of Bajaj
Allianz General Insurance Company, which is a joint venture
of Bajaj Finserv and Allianz SE, a German financial services
company. Moreover, the reduction in cost to income ratio as
well as credit cost will cut the operational costs for the
company, and thereby reap financial benefits.
BSE Code: 533398 FV: 10 CMP: 456 BSE Code: 532978 FV: 5 CMP: 4134
Muthoot Finance Bajaj Finserv
Market Cap (F.F.): 4,557.21 Crore Market Cap (F.F.):23,683.20 Crore
LAST FIVE QUARTERS - Consolidated (Crore) Mar'17 Dec'16 Sep'16 Jun'16 Mar'16 Total Income 7043.23 3293.46 2999.67 2911.84 6311.64 Other Income 0.17 0.11 0.17 0.10 0.15 Operating Profit 2150.82 2357.37 2193.22 2012.03 1833.83 Interest 960.18 942.49 852.5 789.51 789.51 Net Profit 818.72 951.27 863.42 816.30 766.83 Equity 79.57 79.57 79.57 79.57 79.57 LAST FIVE QUARTERS - Consolidated ( Crore)
Mar'17 Dec'16 Sep'16 June'16 Mar'16
Total Income 1709.63 1340.85 1381.75 1296.40 1446.95
Other Income 3.59 5.57 4.49 4.43 4.34
Operating Profit 1148.63 1054.74 1067.19 992.49 1053.60
Interest 546.02 593.74 557.09 563.90 563.90
Net Profit 321.78 291.06 296.72 270.27 265.22
Equity 399.48 399.46 399.05 399.05 399.00
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