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Muthoot Finance reported weak set of numbers. NII grew 2.1% QoQ aided by expansion in NIMs. NIMs during the quarter increased by 30bps QoQ to ~11.0% as shift from teaser rates to normal rates completed in last quarter. Other income was up 4.5% QoQ. Operating expenses were under control and registered a de-growth of 16.8% QoQ despite increase in staff count. There were provision reversals during the quarter of Rs 13 crore. Hence, PAT witnessed a growth of 8.1% QoQ (down 12.8% YoY) at Rs 867 crore. Asset quality improved as gross stage 3 assets fell 46 bps QoQ to 1.67%. AUM growth (standalone) came in at 3.8% YoY to Rs 57230 crore while consolidated AUM was up 6% YoY at Rs 643556 crore. Sequentially, there was growth of ~1% on a standalone and consolidated basis. Performance of key subsidiaries was mixed.
Margin improvement coupled with cost control remain positive, however, muted business growth amid heightened competition remains a concern
Negative