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Muthoot Finance to expand business in Hindi-speaking states

25 Nov 2011 Evaluate

Muthoot Finance, the largest gold financing company in terms of loan portfolio, is planning to expand its business in the Hindi-speaking States with new branches and promotional campaign. By the end of the current fiscal the company is increasing its branches in these States from 1,300 to 1,500. After opening these branches the company will have a total network of 3,400 branches.

The entity, which has raised its marketing and advertising spend from Rs 65 crore in 2010-11 to Rs 100 crore this fiscal and will increase it further next year, advertising in radio and trains as well as part of its promotional campaign. The company's gold loan portfolio (AUM) is more than Rs 20,000 crore as of September 30, 2011, a growth of 30 times in the last six years.

Muthoot Finance’s net profit for the second quarter of the current fiscal  grown by 88.29% at Rs 215.55 crore as compared to Rs 114.48 crore for the similar quarter of the previous fiscal. The company’s total revenue has zoomed by 108.65% at Rs 1104.87 crore for the quarter under review whereas the same stood at Rs 529.54 crore for the similar quarter of the previous year.

Muthoot Finance Share Price

3585.20 48.50 (1.37%)
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