Retail Loan Assets Under Management at Rs.24379crs as at 31st March 2016

Total Income for FY16 at Rs.4875crs -PAT for FY16 at Rs.810crs
Branch Network of 4275 spread across 27 States including Union Territories

Kochi: Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, registered an increase in net profit of 61%, at Rs.265crs for the quarter ended March 2016 as against Rs.165crs last year. Net Profit for FY16 increased by 21% at Rs.810crs as against last year of Rs.671crs. Retail loans registered an increase of 4% of Rs.970crs during the year.

Company acquired 13.93% of equity share capital of M/s. Belstar Investment and Finance Private Limited (BIFPL) in May 2016 and has entered into binding agreement to acquire another 5.57% cumulatively 19.50%. M/s. Belstar is an NBFC engaged in the business of micro finance based out Chennai. It has 76 branches spread over five states which include Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra and Pondicherry and micro finance loan portfolio of Rs.264Crs as on March 31, 2016. Company is also planning to acquire additional 11.14% subject to regulatory approvals in this regard. Further, Company has entered into binding term sheet to infuse Rs.40crs. Consequent to the completion of above transaction; Company will be holding 57% of equity share capital of M/s Belstar thereby making it a subsidiary.

Subsequent to receiving regulatory approvals, Company invested Rs.44.91crs in Muthoot Homefin (India) Ltd acquiring 79% of share capital making it a subsidiary. It started its operations primarily in Kerala and Maharashtra. It is primarily focusing on affordable housing segment. As on March 31, 2016, it has a loan portfolio of Rs.30crs.

Board has also decided to submit an application to SEBI seeking its approval to act as a sponsor of a Mutual Fund.

Company is awaiting regulatory clearance on 100% acquisition of M/s.Muthoot Insurance Brokers Pvt. Ltd, an IRDA registered Insurance Direct Broker.

Further, the company increased its shareholding in Asia Asset Finance Plc, our Sri Lankan subsidiary from 51% to 59.70% during the year. AAF has made considerable progress in its business. This will be the first complete financial year after becoming subsidiary of Muthoot Finance. The synergy created is already depicted in its financial results for FY 16. The interest income of the company has increased by 49% at LKR 1.2 Billion, which has contributed to the overall improvement of its profitability by 73% reaching LKR 175Million. Its asset base grew by 52% reaching the LKR 8.1 Billion. The introduction of Gold Loans and the expansion of Micro Finance portfolio have been the key contributors to this year’s growth.

Financial Highlights:

	Q4 FY16 (Rs.in Crs)	Q4 FY15 (Rs.in Crs)	Q4 YoY % change	Q3 FY16 (Rs.in Crs)	Q2 FY16 (Rs.in Crs)	Q1 FY16 (Rs.in Crs)	FY16 (Rs.in Crs)	FY15 (Rs.in Crs)	YoY % change
Total Income	1451	1102	32%	1141	1140	1143	4875	4325	13%
Profit Before Tax	475	257	85%	290	268	283	1317	1028	28%
Profit After Tax	265	165	61%	187	175	183	810	671	21%
Earnings Per Share(Basic) Rs.	6.67	4.16	60%	4.69	4.39	4.60	20.34	16.97	20%
Retail Loan AUM	24379	23408	4%	24991	24873	24409	24379	23408	4%

	FY 16	FY 15
Return on Average Retail Loans	3.32%	3.03%
Return on Average Equity	15.13%	14.35%
Book Value Per Share (Rs. )	140.72	127.59
Income Tax Paid	524	370

	FY 16	FY 15
Capital Adequacy Ratio	24.48%	24.78%
Share Capital & Reserves (Rs. in Crs)	5619	5084

Commenting on the results M G George Muthoot, Chairman stated, “The last quarter of the year witnessed aggressive collection effort on overdue accounts which resulted in higher yields. Further, avoidance of settlement schemes as well as higher realization on auction of overdue loan accounts due to increased gold prices as well as increase in loan portfolio has also enabled us to improve the yield. Thus, we could achieve 61% increase in profit after tax at Rs.265crs for the quarter as against last year. ”

Speaking on the occasion George Alexander Muthoot, Managing Director said, “Since gold loans are of short duration and consequent to higher level of demand being absent and also due to aggressive recoveries, growth in gold loan portfolio is only 4% during the year. However, we are hopeful of improvement in business in the coming quarters. To meet unforeseen contingencies and as a matter of higher level of investor comfort, we have increased the standard asset provision again from 0.52% to 1% , thus keeping a provision in excess of regulatory requirement of 0.30%. Company has acquired 19.50% of M/s. Belstar Investment and Finance Private Limited, a micro finance company and is further planning to acquire 37.66% through purchase/subscription of further capital, making it a subsidiary, thus further diversifying Company’s business activities. Being a significant player in retail financial services, inorder to broaden its bouquet of retail investment products, Board has decided to seek approval of SEBI to start a Mutual Fund.”

Business Highlights:

Particular	FY 16	FY 15	% Growth(YoY)
Branch Network	4275	4245	1%
Gold Loan Outstanding (Rs. in Cr)	24335	23350	4%
Credit Losses (Rs. In Cr)	10.72	19.16	-44%
% of Credit Losses on Gross Retail Loan AUM	0.04%	0.08%	-50%
Average Gold Loan per Branch (Rs. In Cr)	5.69	5.50	3%
No. of Loan Accounts (in lakh)	66	62	6%
Total Weight of Gold Jewellery pledged (in tonnes)	142	131	8%
Average Loan Ticket Size	36639	37865	-3%
No. of employees	22781	22882	0%

Other Highlights:

14^th Public Issue of Debentures

During the quarter, Company successfully completed 14^th Public Issue of Debentures of a base issue size of Rs.250crs and a greenshoe option another Rs.250crs. The issue was oversubscribed.

MUTHOOT FINANCE IS INDIA’S MOST TRUSTED FINANCE DIVERSIFIED BRAND

Muthoot Finance Ltd. has been ranked as India’s Most Trusted Finance –Diversified Brand in 'The Brand Trust Report, India Study 2016' conducted by TRA Research (formerly Trust Research Advisory). TRA is a leading Data Insights Company involved in understanding and researching aspects that make the intangibles of brands measureable.

The study involved 17,000 hours of fieldwork, 16 cities’ survey, 5 million data points and screening of over 20,000 unique brands.

Shri M G George Muthoot, Chairman- The Muthoot Group

Shri M G George Muthoot, Chairman, said, on the occasion, “We thank all our customers, stakeholders and well-wishers for trusting us strongly and making us the country’s most trusted brand in the category.”

Shri Alexander George Muthoot, Director, said, “We feel blessed to have the trust of over 1,26,000 customers who visit our branches every day. Over 42 crore loyal customers serviced globally have shown their trust in us since our inception 129 years ago. Ninety percent of our overall customers are loyal repeat customers. The ‘Brand Trust Report, India Study 2016' is an acknowledgement of all of this. I am deeply overwhelmed at the continued trust that our customers have shown in us. We, at Muthoot Finance, are committed to protecting this trust and strengthening it.”

Listed on both NSE and BSE, Muthoot Finance Ltd. serves over 1,26,000 satisfied customers daily through its network of 4200+ branches and 22,000+ highly dedicated staff. The wide network of branches offers a bouquet of diversified financial services including Insurance, Foreign Exchange, Money Transfer, Debentures, Muthoot ATMs, etc., all under one roof.

Muthoot Finance Ltd. has been serving millions of underserved and unbanked Indians to bring them under the banking network by providing them with easy Gold Loans. This has in turn led to their Financial Inclusion. Sixty percent of Muthoot Finance branches are located in semi-urban and rural areas, offering an average loan ticket size of Rs 30,000/- to Rs 40,000/- to serve the unbanked masses in rural, semi urban and urban areas of the country.

Our CSR Initiatives:

MUTHOOT SNEHASRAYA

‘Muthoot Snehasraya’ is a Mobile Laboratory intended for Prevention and early detection of Kidney related diseases, diabetes and Hyper tension ailments. The mobile ambulance is being operated across Tamil Nadu & Kerala and facilitates blood & urine tests and create awareness among people about the dreaded disease.

Exclusive camps are held at various centres in Kerala & Tamil Nadu, where the blood sample of participants will be collected and tested for possible kidney related diseases. The camps are being organised with the help of local agencies, clubs, etc. The project in Kerala up to March 2016 have conducted 649 camps touching the lives of 72722 people. The project in Tamil Nadu up to March 2016 have conducted 385 camps touching the lives of 39227 people.

MUTHOOT SNEHASAMMANAM

Muthoot Finance launched “Muthoot Sneha Samanam 2016” to honour artists, writers and their widows by providing financial assistance. This initiative is a part of the Corporate Social Responsibility activities undertaken by the company. The first edition of Snehasammanam was launched on January, 2015. 14 beneficiaries were then honoured. Muthoot Snehasammanam 2016 honored 12 more, thus bringing the total number of beneficiaries to 26.

These beneficiaries were selected from applications received from artists, writers, and their dependents. These beneficiaries belong to various different backgrounds, which specialise in their respective work segments namely writers, music directors, ganmela artist, professional painters etc. The initiative aims to help the upcoming generation of artist and writers who could get inspired and learn from the work of these professionals. Perhaps it will also help the young minds of today in learning from their experiences and carrying forward their work in their respective fields.

The snehasammanam 2016 was inaugurated by Shri Thiruvanchur Radhakrishnan, Hon’ble Minister for Forests, Wild Life Protection, Sports, Cinema, Road Transport, and Environment. Mr. George Alexander Muthoot, Managing Director, Mr. George Thomas Muthoot, Jt. Managing Director, Muthoot Finance Ltd., Dr. P.R Sona, Municipal Chairperson, Kottayam were present on the occasion

MUTHOOT SHAPE A SMILE PROJECT

Muthoot Finance Ltd started a project called “Muthoot Shape a Smile” for providing cleft lip & palate surgeries to bring back smiles to children suffering from cleft lip and palate deformity. Through this initiative, Muthoot M. George Foundation aims to spread awareness on this problem and also educate the public that an early surgical intervention can safely correct this defect. Free surgeries are sponsored for children at Kumaran Hospital, Chennai.

The screening of the patients would initially be carried out by a cleft & maxillofacial surgeon. Once the patients are screened and selected, they would be further evaluated by the anesthesiologist, pediatrician, and speech therapist at Kumaran Hospital, Chennai. The necessary laboratory investigations will then be carried out and if found fit for surgery, they will be operated at the same hospital. All treatment costs are free, which include cost of surgery, laboratory investigations, medicines, and hospital stay. The patient can be discharged within 5-7 days from the day of admission.