Shares of Muthoot Finance rallied over 8 percent Thursday after it posted decent second quarter earnings led by robust loan asset growth.
The company reported 76.4 percent rise in Q2FY20 consolidated net profit at Rs 908.54 crore as against Rs 515.06 crore in the same period last year.
Total income of the gold loan provider increased to Rs 2,406.39 crore versus Rs 1,820.88 crore on year.
Consolidated Loan Assets under management achieved a YoY increase of 13% at Rs 40,390 crore as against last year of Rs 35,835 crore for H1 FY20, the company said in a regulatory filing.
Muthoot Homefin (India) Ltd (MHIL), its wholly owned subsidiary, increased its loan portfolio to Rs 2,098 crore as against previous year of Rs 1,775 crore, a YoY increase of 18%, the company added.
Further, Belstar Microfinance Private Limited (BMPL) , an RBI registered micro finance NBFC and subsidiary company grew its loan portfolio in H1FY20 by 53 percent to Rs 2,107 crore as against Rs 1,381 crore in the same period last year.
The subsidiary achieved a profit after tax of Rs 28 crore in Q2FY20 as against Rs 16 crore on year.
At 10:45 AM, shares of Muthoot Finance rallied 8.77 percent to Rs 706.60 on the Bombay Stock Exchange.