Muthoot Capital Services Limited net profit up 34.75%

The audited financial results of Muthoot Capital Services Limited for the year ended 31st March, 2011 reveal substantially higher performance compared to the corresponding period last year .

The net profit of the Company increased from Rs.717.28 lakhs to Rs.966.55 lakhs, an impressive growth of 34.75% over last year . The total Income of the Company registered a growth of 67.87%, from 2247.56 lakhs during the previous year to 3772.92 lakhs in the current year. Commensurate with the increase in operations, the interest expenses increased by 67.30% to

Rs 1157.07 lakhs from Rs. 691.61 lakhs in the last year. On account of the substantial increase in manpower and infrastructure to support the enhanced level of activities, the operational expenses during the corresponding period recorded an increase of 139.08 %, from Rs. 456.93 lakhs to Rs. 1092.44 lakhs. The profit before tax recorded a jump of 33.40% from Rs. 1087.42 lakhs in the previous year to Rs. 1450.61 lakhs during the year ended 31st March 2011.

During the quarter ended 31st March 2011, the net profit increased to Rs.267.90 lakhs, from
Rs. 206.14 lakhs compared to the corresponding quarter in the previous year, recording a growth of 29.96%. The total Income for the Company increased to Rs. 1153.62 lakhs during the quarter ended 31.03.2011 from Rs.662.29 lakhs during the corresponding period last year, registering a growth of 74.19%. The profit before tax during the corresponding period increased by 28.64% from Rs. 313.71 lakhs to Rs.403.57 lakhs.

The Company has been expanding the activities in across south Indian states and Goa ,under the Automobile finance segment, mainly two wheeler financing. The Company was able to disburse 35123 loans in the year 2010-2011 amounting to Rs 138.35 crores. The outstanding loan amount increase from Rs 39.99 crores as on 31-03-2010 to Rs 129.79 crores as on 31-03-2011, with a delinquency ratio of only 0.18% as on 31-03-2011, is the lowest in the industry.

The Company is introducing innovative products under the Automobile Finance Segment. Through the Smart Plus Auto Loan, the full cost price of the vehicle is given as loan, enabling the borrowers to leverage their gold ornaments against the margin requirement. The Company expects very good response to this product from the market.

Another innovative product to be introduced by the Company in the near future is loan against Gold Exchange Traded Funds (ETF). The Gold ETFs are securities issued by Asset Management Companies against 995 purity gold kept by them with depositaries. The securities are in dematerialised form, easily transferable, easily encashable and are traded in stock exchanges. By introducing this product, the Company will be putting to use the Group's core competence in granting loan against gold, to provide liquidity for investors in ETF thereby promoting the popularity of ETF.

'The Company continues to focus on providing value creation for all the stakeholders namely the staff, shareholders and above all the customers, by providing financial services solutions suiting the market needs, upholding the highest values in professional management'said Mr.Thomas George Muthoot, Managing Director.

'The Company is committed to meeting the needs of the market under Automobile finance sector and its aiming to become the leading player in the segment in South India by March 2013' said Mr. R. Manomohanan, Chief Executive Officer.