MUTHOOT MICROFIN LTD. 2023-24 Annual Report Analysis

Fri, 28 Jun

MUTHOOT MICROFIN LTD. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

MUTHOOT MICROFIN LTD. Income Statement Analysis

• Interest income during the year rose 58.9% on a year-on-year (YoY) basis.
• Interest expenses were up by 60.9% YoY during the same period.
• Operating expenses increased by 19.3% YoY during the year.
• The company's net interest income (NII) increased by 57.7% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 14.6% in FY24 as against 12.4% in FY23.
• Other income declined by 12.9% YoY during the year.
• Net profit for the year increased by 174.3% YoY.
• Net profit margins during the year increased to 19.8% in FY24 from 11.5% in FY23.

MUTHOOT MICROFIN LTD. Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	14,288	22,702	58.9%
Other Income	Rs m	176	153	-12.9%
Interest Expense	Rs m	5,490	8,832	60.9%
Net Interest Income	Rs m	8,798	13,870	57.7%
Operating Expense	Rs m	6,579	7,850	19.3%
Pre-provision Operating Profit	Rs m	2,395	6,173	157.8%
Provisions & Contingencies	Rs m	0	0	0.0%
Profit before tax	Rs m	2,129	5,818	173.3%
Tax	Rs m	490	1,323	170.0%
Profit after tax	Rs m	1,639	4,496	174.3%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	12.4	14.6
Net profit margin	%	11.5	19.8

Don't Miss: Key Information for Long-term Investors

MUTHOOT MICROFIN LTD. Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 94.4 bn as compared to Rs 70.3 bn during FY23, a rise of 34.3%.
• Cost of deposits for MUTHOOT MICROFIN LTD. rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments fell to Rs 683 m during the year from Rs 786 m in FY23.
• Borrowing stood at Rs 0 m, a growth of 0.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 115.9 bn as against Rs 85.2 bn during FY23, thereby witnessing a rise of 36.0%.

MUTHOOT MICROFIN LTD. Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,204	27,895	72.2%
Advances	Rs m	70,266	94,357	34.3%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	786	683	-13.1%
Borrowings	Rs m	0	0	0.0%
Total Assets	Rs m	85,234	115,902	36.0%

Current Valuations for MUTHOOT MICROFIN LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.4, an improvement from the EPS of Rs 14.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 244.7, stands at 9.0 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.5 times, while the price to income ratio stands at 1.8 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	122.3	133.2
Earnings per share (Unadj.)	Rs	14.0	26.4
Diluted earnings per share	Rs	9.6	26.4
Avg P/E ratio	Rs	0.0	9.0
Avg P/ABV ratio	Rs	0.0	1.5
Avg Market Cap	Rs	0	40,654
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for MUTHOOT MICROFIN LTD.

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 9,435,664.0x during FY24, from 7,026,575.0x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio increased and stood at 0.00x during FY24, from 0.00x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): MUTHOOT MICROFIN LTD.'s capital adequacy ratio (CAR) was at 29.0% as on 31 March 2024 as compared to 21.9% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 16.1% during FY24, from 10.1% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 3.88% during FY24, from 1.92% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 15.20% during FY24, from 11.33% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. MUTHOOT MICROFIN LTD.'s gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of MUTHOOT MICROFIN LTD. was 0.9% in financial year 2024. This compared with 1.2% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	7,026,575.0	9,435,664.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	21.9	29.0
Return on Equity	%	10.1	16.1
Return on Assets	%	1.9	3.9
Return on Capital Employed	%	11.3	15.2
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	1.2	0.9
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how MUTHOOT MICROFIN LTD. has performed over the last 5 years, please visit here.

MUTHOOT MICROFIN LTD. Share Price Performance

Over the last one year, MUTHOOT MICROFIN LTD. share price has moved up from Rs 0.0 to Rs 244.7, registering a gain of Rs 244.7 or around 0.0%.

Overall, the S&P BSE SENSEX is up 0.1% over the year.

(To know more, you can check out historical annual results for MUTHOOT MICROFIN LTD. here and quarterly results for MUTHOOT MICROFIN LTD. here)