Muthoot Finance shares advance over 4% after board approves interim dividend of ₹26 per share for FY25; check details

“…at the meeting, the Board of Directors has inter alia considered and approved the payment of an interim dividend of ₹26 (Rupees Twenty-Six) per equity share (260%) for the financial year 2024-25,” the company said in a statement to the stock exchanges.

During the meeting, the board also recommended, for approval of the shareholders, the appointment of George Joseph as an independent director of the company.

The company also said that the interim dividend will be paid to the shareholders within 30 days from the date of declaration.

The board also sought the approval of the shareholders for “an increase in the borrowing powers of the Board of Directors under Section 180 (1) (c) of the Companies Act, 2013, for an amount up to ₹2 Lakh Crores.”

Following this, shares of Muthoot Finance were trading 4.34% higher at ₹2,203.30 apiece on the National Stock Exchange.

Over the last five trading sessions, the stock has jumped over 9%. For a six-month period, it has soared over 13%.

The gold loan financer had reported a 21.4% rise in its consolidated net profit during the third quarter of the current financial year to ₹1,392 crore, as against ₹1,145 crore in Q3 FY24.

The company's total revenue from operations also increased by 36% to ₹5,189 crore, compared to ₹3,820 crore during the corresponding quarter last fiscal. The company's consolidated loan assets under management grew by 34% from ₹82,773 crore last financial year to ₹111,308 crore during the quarter under review.

Muthoot Finance’s consolidated loan assets under management (AUM) grew 34% year-on-year (YoY) to ₹1,11,308 crore as of 9M FY25 as against ₹82,773 crore last year.

Its net interest income (NII) in Q3 FY25 increased 42.8% to ₹2,721.4 crore from ₹1,905.7 crore, year-on-year (YoY). Calculated net interest margin (NIM) expanded by 69 basis points (bps) YoY and 9 bps quarter-on-quarter (QoQ) to 11.6%.