Muthoot Microfin Limited (MML) is a part of the Muthoot Pappachan Group. The company entered the microfinance business in 2010 as a division of Muthoot Fincorp Limited. In December 2011, the Group had acquired a Mumbai-based non-banking financial company (NBFC), Pancharatna Securities Ltd, and renamed it MML.
As of March 2022, Muthoot Fincorp Limited has 54% holding in the company. MML has grown its presence across India and is currently operating in 15 states. As of March 2022, it had 905 branches and a portfolio size of about Rs. 62.34 billion with a borrower base of 27.25 lakh.
Capital Infusion- Greater Pacific Capital infused USD 10 million in MML in Oct 2022.
Credit Rating-MML has been rated as A/stable by CRISIL and India Rating.
|
Parameters(billion) |
FY22 |
FY21 |
|
Total income |
8.43 |
6.96 |
|
Profit after tax |
0.47 |
0.07 |
|
Total Equity |
13.36 |
8.89 |
|
AUM |
62.33 |
49.5 |
|
CRAR |
28.75% |
|
|
Gross NPA (%) |
6.3 |
8.1 |
|
Net NPA (%) |
1.6 |
1.5 |
|
Gearing |
4.5 |
5.1 |
Credit Positive:
Ø Strong Parentage support
Ø Long track record and experience of the promoters in the microfinance space
Ø Adequate capitalization
Ø Operating efficiency
Credit Negative:
Ø Weak asset quality although improving
Ø Geographical concentration
Operating Efficiency- In post covid scenario, the company has been able to show operating efficiency. This can be seen from the fact that its total income rose by 21% during FY2 on yearly basis while net income soared by 5 times. As of 31st March 2022, its AUM rose by 26% on yearly basis.
Adequate capitalization-Owing to capital infusion by private equity, its net worth rose to Rs 13.36 billion a of 31st March 2022 from Rs 8.89 billion as of 31st March 2021.Its capital adequacy remained health at 28.75% as of 31st March 2022.