R Manomohanan, CEO,add the call:Highlights by Capital Mkt
The company has posted strong 35% growth in the disbursements to Rs 165 crore for Q1FY2016 compared with Rs 122.5 crore in Q1FY2015. The company has targeted disbursements of Rs 775-800 crore for FY2016.Loan book of the company stood at Rs 878 crore at end June 2015 compared with Rs 840 crore at end March 2015. Vehicle loan book was Rs 802 crore, of which Rs 45 crore was three wheelers and rest was two wheelers. The company has also been buying loan portfolio from other NBFCs and such portfolio stands at Rs 51.6 crore. The SME loan book of the company stood at Rs 30 crore at end June 2015.However, the revenue growth was moderate at 12% to Rs 50.65 crore in Q1FY2016, on account of higher interest income reversal with surge in NPAs.The profitability of the company was negatively impacted to the extent of Rs 7.77 crore on account of three factors such as interest income reversals of Rs 2.9 crore, NPA provisions of Rs 2.7 crore and losses of Rs 2.17 crore on sales of repossessed vehicle at discounts.GNPA of the company increased to Rs 59.7 crore at end June 2015 from Rs 54.11 crore at end March 2015. The NPA is recognized on 150 days overdues basis in Q1FY2016, well ahead of regulatory requirement of by end March 2016.
On 180 days over dues basis, GNPA ratio increase to Rs 51 crore at end June 2015 from Rs 32 crore at end March 2015.GNPA ratio stood at 6.9%, while NNPA ratio was at 6% at end June 2015.The provision coverage ratio (PCR) of the company stood at 13.12% at end June 2015. The company expects to maintain PCR at around similar level in rest of FY2016.The company has been focusing heavily on recoveries of NPAs and expects healthy improvement in asset quality in FY2016.
The company has appointed 49 collection agencies with 35 in Kerala, 5 in Karnataka and 9 in Tamil Nadu, while also proposes to appoint collection agencies in other states.The company has segregated softer and harder NPAs and handed over harder NPAs to collection agencies for recoveries.
The company has presence in eight Sothern and Western states of India, while it plans to enter into Northern states of Punjab, Haryana, and Delhi etc in Q2FY2016.The cost of funds for the company has declined to 11.65% in Q1FY2016 from 11.75% in the preceding quarter and 12.74% in the corresponding quarter last year. Meanwhile, the yield on asset eased to 24.1% in Q1FY2016 from 24.13% in Q4FY2015 and 26.01% in Q1FY2015. Spreads of the company eased marginally to 12.5% in Q1FY2016 from 13.27% in Q1FY2015. The company expects to maintain spreads at current level.The company has reduced the share of bank borrowings to 80% at end June 2015 from 84% at end June 2014, while it is planned to be further reduced ahead. CRAR ratio of the company stood at 15.62% at end June 2015. The company is looking at capital infusion through subordinated debt.
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CONFERENCE CALL - from Capital Markets
Muthoot Capital Services
Targets strong disbursements of Rs 1250 crore for FY2017
Muthoot Capital Services conducted concall on 18 January 2016 to discuss financial performance for the quarter ended December 2015. R Manomohanan, CEO, Muthoot Capital Services addressed the call:
Highlights:
The company has posted strong 39% growth in the disbursements to Rs 545 crore for 9MFY2016 compared with Rs 393 crore in 9MFY2015.
The company maintains the disbursements guidance of Rs 780-790 crore for FY2016.
However, the company targeted sharp growth in disbursements to Rs 1250 crore in FY2017.
The share of Kerala in disbursements stood at 48% in 9MFY2016, compared with 45% in FY2015, 43% in FY2014 and 63% in FY2015. For FY2016, the share of Kerala in disbursement is expected at 45%.
The share of Kerala in loan book is declining from 69% in FY2012 to 58% in FY2014, 53% in FY2015 and 51% at end December 2015, which indicates moderating dependence of the company on Kerala market for loan growth.
Loan book of the company increased to Rs 933 crore at end December 2015 compared with Rs 840 crore at end March 2015. Vehicles loan book moved up to Rs 863 crore from Rs 780 crore.
GNPA of the company increased to Rs 62.06 crore at end December 2015 from Rs 59.85 crore at end September 2015. The NPA is recognized on 150 days overdues basis, well ahead of regulatory requirement of by end March 2016.
The GNPA for two-wheelers segment stood at Rs 51 crore at end December 2015 compared with Rs 46 crore at end September 2015. The GNPA for three-wheelers eased to Rs 11 crore from Rs 13.5% in the same period.
The company proposes to reduce the GNPA to March 2015 level of Rs 55 crore by end March 2016.
Net NPA of the company stood at Rs 50.99 crore at end December 2015 compared with Rs 50.51 crore at end September 2015.
The cost of funds for the company stood at 11.15%, while the yield on assets was 24.91% in Q3FY2016.
The borrowing of the company stood at Rs 796 crore at end December 2015. The banks borrowings had share of 81%, following fixed deposits at 15% at end December 2015.
CRAR ratio of the company stood at 17.19% at end December 2015.
CONFERENCE CALL - from Capital Markets
Targets disbursements of Rs 1383 crore and loan book of Rs 1500 crore for FY2017
Muthoot Capital Services conducted concall on 20 April 2016 to discuss financial performance for the quarter ended March 2016. R Manomohanan, CEO, Muthoot Capital Services addressed the call:
Highlights:
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The company has posted strong 39% growth in the disbursements to Rs 314.65 crore in Q4FY2016 and 43% to Rs 928 crore for FY2016 compared with Rs 649 crore in FY2015.
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The two-wheelers disbursements moved up 32% to Rs 780 crore, while business loans disbursements jumped 162% to Rs 148 crore in FY2016.
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The loan book of the company surged 24% to Rs 1038 crore at end March 2016 over March 2015.
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The company is targeting 49% growth disbursements to Rs Rs 1383 crore for FY2017, while expects 45% growth in the loan book to touch Rs 1500 crore for FY2017.
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The company has expanded to north area with the launch of operations in seven northern states. The company is targeting disbursements of Rs 150 crore from northern states. Meanwhile, the business loans disbursements are expected to increase to Rs 200 crore in FY2017.
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GNPA of the company declined on sequential basis to Rs 54.03 crore at end March 2016 from Rs 62.06 crore at end December 2015, while increased from Rs 32.54 crore at end March 2016.
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GNPA recognition on 150 days overdues basis, has contributed about Rs 21.38 crore of NPA rise in FY2016. The fresh slippages of advances stood at Rs 35.63 crore in FY2016.
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The GNPA for two-wheelers segment stood at Rs 46.56 crore at end March 2016 compared with Rs 51 crore at end December 2015. The GNPA for three-wheelers eased to Rs 7.5 crore from Rs 11 crore a quarter ago.
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Net NPA of the company stood at Rs 45.06 crore at end March 2016 compared with Rs 50.99 crore at end December 2015.
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The cost of funds for the company declined on sequential basis to 10.89%, while the yield on assets improved to 26.24%, helping to improve spreads to 15.35% at end March 2016.
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The borrowing of the company stood at Rs 882 crore at end March 2016. The banks borrowings had share of 93.7%, following fixed deposits at 12.4% at end December 2015.
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CRAR ratio of the company stood at 15.38% at end March 2016.
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The company is planning to raise Tier II capital of Rs 50 crore through sub-ordinated debt in Q1FY2017.
Short Summary of Q3 conference call:
we have also prepared few other summaries. Sharing here: https://goo.gl/5RTk0o
Read disclaimer for summaries here: https://goo.gl/HELov8
Saket, we appreciate your efforts in the short summary of conference calls. But posting the same message across all the threads is akin to spamming.
100% disgaree with you sir. Saket is doing an superb awesome work, and we should appreciate his work and encourage it.
Posting the links to the summary of concalls is a superb idea any given day. My productivity of reading ConCall increases by minimum 3x thanks to Saket’s notes (as my notes are way smaller than him).
Keep the awesome work you are doing @margin_of_safety
There is no problem with posting links of the summary of concalls which does not lead to any personal blog, it actually is a very noble way of sharing. The email form filling link is objectionable & Saket has agreed to remove it.
Stock up 20% today. Any idea what the news is? Maybe something to do with the BS IV inventories sold on the last day of the last quarter?
Disc: Invested with 40% of my portfolio
Good stock to hold., Kalpraj Dharamshi and Hina Dharamshi hold stake.
Disc : Added small lot yesterday at 310 level.
Amit
Muthoot Capital’s strategy of retaining entire earnings and not paying any dividends would help it grow at faster pace.
It should add to shareholder value.
Disclosure Invested in shares
Can help the stock .
Listened to Q4 con call transcript. A guy calls in and starts with the usual, “congrats on a very good set of numbers”. The management responds, thanks for the congratulatory messages both by whatsup and now here.
Do people message management over whatsup to congratulate quarterly results? . Strange this
I remember I bought this company around 80 rs few yrs back when it was around 100 crores market cap and sold around 120 for a small profit. Today its 1500 crores market cap. How can we value this company ?
The net worth as per yesterdays result is 393 crores approx , its trading at 4 times its net worth. is it expensive ? considering its a small company and can it sustain the growth which it has shown in last 1-2 years. Guys please share your views
donald francis has written an excellent writeup on muthoot in valuepickr itself , I dont think anything further is needed ,
No Dividend is being paid
Optimal decision for shareholders
Disclosure Invested in shares