Muthoot Microfin, backed by Greater Pacific Capital and Creation Investments Capital Management, has announced a 14.5% increase in its net profit for Q2 FY24 to ₹109.6 crore ($14.7 million). This growth occurred despite an increase in impairment on financial instruments to ₹42.73 crore ($5.7 million). The company's revenue also saw a boost, rising by 17.7% to ₹563.63 crore ($75.6 million) for the July-September FY24 period.
The microfinance firm, which specializes in providing micro-loans to women in rural regions, also reported improved asset quality during the quarter. The gross non-performing assets (NPA) fell to 2.37%, while the net NPA declined to 0.33%.
Looking at the six-month period ending September FY24, Muthoot Microfin's net profit surged to ₹205.3 crore ($27.6 million) and revenue increased by a significant 72.4% to ₹1,042.3 crore ($140 million).
In addition to these positive financial results, Muthoot Microfin is preparing for its initial public offering (IPO). The company aims to raise ₹1,350 crore ($181 million) through a fresh issuance of shares worth ₹950 crore ($127 million) and an offer for sale (OFS) of ₹400 crore ($53 million) by promoters and investors.
Furthermore, Muthoot Microfin plans a pre-IPO placement of ₹190 crore ($25 million) before filing the red herring prospectus with the Registrar of Companies (RoC). If successful, this will reduce the size of the fresh issue. The net proceeds from the fresh issue will be used to augment the company's capital base to meet future capital requirements.
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