KOCHI: Muthoottu Mini Financiers Ltd (MMFL) has reported a healthy improvement in its financial performance for the fiscal year 2024–25 (FY25), with net profit rising to Rs94.2 crore, up from Rs77.8 crore in the previous fiscal.
The 21 per cent jump in profit was backed by a strong uptick in total income, which increased from Rs671.8 crore in FY24 to Rs815.1 crore in FY25.
The company’s total managed assets also grew steadily during the period, rising from Rs4,340.3 crore to Rs4,994.7 crore, reflecting continued demand for gold loans — the company’s core product.
Founded in 1998, Muthoottu Mini has built a strong presence in the gold loan segment and operates through 948 branches across 12 states and Union Territories. While gold loans accounted for 92.1 per cent of its loan book as of March 2025, the company also has a limited but growing presence in the microfinance sector in Kerala, primarily offering unsecured loans to women’s joint liability groups.
The company’s operations remain heavily concentrated in South India, which contributes 95 per cent to its total loan portfolio. However, MMFL has been expanding its geographic footprint, with new branches being added in Mumbai, Gujarat, and the Delhi NCR region.
Asset quality
MMFL continues to maintain a stable asset quality, with limited credit costs in the gold loan segment. As of March 2025, its entire gold loan book had a loan-to-value (LTV) ratio of less than 75 per cent, providing adequate security cover. Additionally, the company has been shifting towards a higher-yielding, smaller-ticket loan profile – with 96 per cemt of loans being under Rs3 lakh – a strategy that has helped support gradual improvement in margins and earnings.
MMFL’s capitalisation remains adequate for near-term growth, supported largely by internal accruals. While sufficient for now, further capital infusion may be required to sustain medium-term growth at the current pace. ICRA, which has assigned a ‘Stable’ outlook to the company, expects MMFL to keep its leverage below 6x in the foreseeable future.
