India’s Muthoot Finance Q3 profit beats on higher gold prices

BENGALURU, Feb 6 (Reuters) – Muthoot Finance Ltd (MUTT.NS) reported a third-quarter revenue on Monday that beat analysts’ estimates, as larger gold costs boosted demand throughout the festive season.

The gold financing firm reported a revenue of 9.02 billion rupees ($109.14 million) for the three months ended Dec. 31, down from 10.29 billion rupees a 12 months earlier hit by decrease curiosity earnings, it mentioned in an change submitting.

Nonetheless, analysts on common have been anticipating a revenue of 8.75 billion rupees, based on Refinitiv IBES knowledge.

The gold mortgage business sometimes advantages from a surge in value of the steel. Bullion costs have risen within the latest months, as demand for gold as a safe-haven funding has elevated resulting from market volatility.

Analysts have additionally mentioned that the business for banks and non-banking monetary firms(NBFC) is anticipated to see vital development in the long term, contemplating the big family gold jewelry holding in India, whilst extra gamers enter the gold mortgage market.

“Regardless of the challenges, efforts by the NBFC sector has elevated the visibility of gold loans as a secure, secured lending product,” the corporate mentioned.

In latest months, India has seen an increase in credit score off-take, whilst lending prices elevated with a pick-up in financial actions from pandemic lows, which has helped drive strong earnings for lenders.

The corporate was helped by a 5.6% rise in mortgage property to 577.31 billion rupees, in comparison with 546.88 billion an 12 months in the past.

Nonetheless, curiosity earnings – the distinction between curiosity earned and paid – fell 7.8% to 26.18 billion rupees within the quarter.

($1 = 82.6490 Indian rupees)

Reporting by Ashna Teresa Britto and Priya Sagar in Bengaluru; Enhancing by Rashmi Aich

Our Requirements: The Thomson Reuters Belief Rules.