Muthoot Finance Ltd reported a smaller-than-expected fourth-quarter profit on Friday, as demand for loans dropped amid weak macroeconomic environment.
The gold financing company reported a profit of Rs 903 crore ($110.42 million) for the three months ended March 31, down from Rs 960 crore a year earlier, it said in an exchange filing.
Analysts on average were expecting a profit of Rs 946 crore, according to Refinitiv IBES data.
The gold loan industry has continued to benefit from a surge in the metal's prices amid an increase in safe-haven investment in gold due to market volatility.
Goal loan industry as a whole has seen a surge in their cost of funds amid rising interest rates, driving potential borrowers away. The macroeconomic environment has driven the interest rates on loans higher during the quarter.
Additionally, the company was hurt by an expense of Rs 75.29 crore during the quarter, taking its total expenses up about 19%.
BSE Odisha 10th Result 2023: All you need to know about checking result
Record gold price may not bring back sheen in Muthoot, Manappuram: Analysts
CBSE Results 2023: Everything you need to know to check at website
Karnataka SSLC Class 10 Result 2023: Result out, all details here
Karnataka SSLC 10th Result 2023 Date, Time: Everything you need to know
JK Lakshmi Cement Q4 results: Net profit falls 40% to Rs 110 crore
Refex Industries posts standalone PAT of Rs 50.67 crore in Jan-Mar quarter
DB Corp Q4 results: Net profit up 67.3% to Rs 41 cr, revenue up 12.5%
JSW Steel Q4 results: Consolidated net profit rises 13% to Rs 3,664 crore
Zomato Q4 results: Net loss falls to Rs 188 crore, revenue rises 70%
Revenue from services and service charges dropped 28% and 12%, respectively.
Muthoot's interest income, which is the difference between interest earned and paid, rose 5.8% to Rs 2,794 crore in the quarter.