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News: Muthoot Finance reported healthy performance in Q3FY24 delivering business growth as well as steady margins during the quarter. AUM increased 21% YoY and 3 QoQ to Rs 71182 crore. Margins remained steady at 10.88% as increase in cost of funds was passed on to customers. Lower provisions led earnings growth at 14% YoY and 4% QoQ to Rs 1027 crore. Asset quality improved with 39 bps QoQ decline in GNPA to 3.62%.
Views: Repayment from book sold to ARC in Q2FY24 is on track; expect the book to get paid in Q4FY24. Outlook on growth continues to remain healthy with easing of competitive intensity and robust performance in subsidiaries. Margins remain in focus, though marginal pressure in Q4FY24 could not be ruled out.
Impact: Positive
Muthoot Finance reported healthy performance in Q3FY24 delivering business growth as well as steady margins during the quarter. AUM increased 21% YoY and 3 QoQ to Rs 71182 crore. Margins remained steady at 10.88% as increase in cost of funds was passed on to customers. Lower provisions led earnings growth at 14% YoY and 4% QoQ to Rs 1027 crore. Asset quality improved with 39 bps QoQ decline in GNPA to 3.62%.