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    Muthoot Capital Q3 profit jumps 48% to Rs 23 crore

    Synopsis

    The growth came despite liquidity crunch in the NBFC sector and a lacklustre two-wheeler sales in the quarter owing to increased insurance price in the segment.

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    The growth came despite liquidity crunch in the NBFC sector and a lacklustre two-wheeler sales in the quarter owing to increased insurance price in the segment.
    Vehicle-finance lenders, Muthoot Capital’s third quarter net profit rose 48% to Rs.23.3 crores from Rs.15.7 crores in the last year quarter on the back of growing asset quality.

    The growth came despite liquidity crunch in the NBFC sector and a lacklustre two-wheeler sales in the quarter owing to increased insurance price in the segment.

    “As far as MCLS is concerned, we’re into small ticket loans. If there are any short-term shock we can manage that…the liquidity problem is a short-term concern for us because we’ve a strong collection on the ground,” said Madhu Alexiouse, Chief Operating Officer, Muthoot Capital.

    The total income touched INR 142.3 crores, against INR 105.2 crores for the corresponding quarter of the previous year, showing a growth of 35 %.

    The NBFC’s disbursed Rs.493.1 crores of their total advances of Rs.502.1 crores for vehicle loans, which is their majority portfolio, during the quarter. The total AUM (Assets under Management) reached INR 2596 crores at the end of the quarter, including the securitized portfolio of INR 438.3 crores.

    With new product launches in line for the upcoming quarters, the company said that it plans to reach Rs.4000 crore AUM by the end of 2020, Alexiouse said.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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