Will See 40% AUM Growth In FY25 Vs The Guidance Of 25-30%: Muthoot Finance | CNBC TV18

Summary

The midcap index saw a 2% rise, reaching 50,500, with Mud Finance emerging as a key performer. The company reported a 38% growth in gold AUM, surpassing initial targets, and expects 40% growth this year, with continued strong performance into FY26. Despite challenges in microfinance, particularly with Belstar, the worst appears to be behind them. The company's management also highlighted a steady net interest margin of 10-11% and cautious growth expectations for their microfinance portfolio. Overall, Mud Finance’s outlook remains optimistic, with growth expected to continue at a solid pace.

Takeaways

• 😀 Midcap index rose by 2%, reaching 50,500, with a focus on the upcoming 1,000-point milestone.
• 😀 Mud Finance's stock saw a boost after management's appearance on CNBC TV18, with a notable uptick in the second half of trading.
• 😀 The key driver behind Mud Finance's stock rise was the insightful management interview on CNBC TV18.
• 😀 Mud Finance's gold AUM (assets under management) crossed the 1 trillion rupees mark, showing a 38% growth, surpassing their initial 25-30% guidance.
• 😀 Mud Finance expects 40% growth in gold AUM for the current year, exceeding previous forecasts.
• 😀 For FY26, Mud Finance anticipates 15% growth in gold AUM and aims for net interest margins of 10-12%.
• 😀 Mud Finance’s microfinance business faced struggles in the past, but management believes the worst is behind them, with growth moderating.
• 😀 The microfinance portfolio, once at around 10,000 crores, has reduced to 8,000-9,000 crores as Mud Finance moderates growth in that segment.
• 😀 Mud Finance predicts two more quarters of pressure on their microfinance business before it stabilizes.
• 😀 The company is confident in continuing to exceed their growth guidance in the coming year, despite the challenges faced.

Q & A

What is the key performance indicator for Mud Finance discussed in the segment?

The key performance indicator for Mud Finance is its gold AUM (Assets Under Management), which has crossed the 1 trillion rupees mark, reflecting a growth of 38%, surpassing the initially guided growth rate of 25-30%.

How did Mud Finance's stock perform during the day?

Mud Finance's stock started out flat, but saw a significant pickup in the second half of the trade, especially after the management shared insights on CNBC TV18.

What specific growth does Mud Finance expect for the current year (FY 2025)?

Mud Finance expects a growth rate of 40% for the current year, surpassing its previously guided range of 25-30%.

What is Mud Finance’s growth guidance for FY 2026?

For FY 2026, Mud Finance expects a growth rate of more than 15%, as indicated by their management.

What is the company’s expected net interest margin (NIM)?

Mud Finance expects its net interest margin (NIM) to be in the range of 10 to 12%, as stated by their management.

What is the status of Mud Finance’s microfinance business?

Mud Finance's microfinance (MFI) business, which had faced challenges in the past, is expected to stabilize after two more quarters of pressure. The worst is believed to be behind them.

What did Mud Finance’s management say about their microfinance portfolio size?

Mud Finance’s microfinance portfolio, which was around 10,000 crores six months ago, has reduced to approximately 8,000-9,000 crores due to moderated growth.

How much has Mud Finance’s gold AUM increased from the previous period?

Mud Finance’s gold AUM has increased significantly, reaching 1 trillion rupees, up from 72,000 crores, marking a substantial growth in their gold-related business.

What is Mud Finance’s future outlook on its business performance?

Mud Finance's management is optimistic about future performance, aiming to continue exceeding growth expectations, despite pressures in some segments like microfinance.

Why did Mud Finance’s stock rise during the day?

Mud Finance's stock rose during the day due to the positive insights shared by the company's MD during an interview on CNBC TV18, particularly regarding their growth guidance and successful management of gold AUM.