Muthoot Finance Q2 Results: Profit Nearly Doubles, NII Up 59%

Muthoot Finance Ltd's standalone net profit nearly doubled in the second quarter of the current financial year.

The company posted a bottom line of Rs 2,345 crore in the September quarter as compared to Rs 1,251 crore in the year-ago period, according to an exchange filing on Thursday. The net interest income jumped 59% to Rs 3,992 crore from Rs 2,519 crore in the same quarter last fiscal.

• NII up 58.5% to Rs 3,992 crore versus Rs 2,519 crore.

• Net profit up 87.5% to Rs 2,345 crore versus Rs 1,251 crore.

The board of the company also approved an additional Investment of Rs 500 crore. These funds will be invested into the company's arm Muthoot Money. It also approved the incremental fundraising of up to Rs 35,000 crore via non-convertible debentures.

Muthoot Finance's stock closed 2.05% higher at Rs 3,393.1 apiece on the National Stock Exchange before the announcement, compared to a 0.01% advance in the benchmark Nifty 50. The share price has risen 91.67% in the last 12 months and 58.84% on a year-to-date basis.

Sixteen out of the 25 analysts tracking the company have a 'buy' rating on the stock, five recommend 'hold' and four suggest 'sell', according to Bloomberg data. The average of 12-month analysts' target price on the stock is Rs 2,911.67, implying a potential downside of 14.2%.