Muthoot Capital Services Limited Investor Conference Call Summary
Announcement Details
• Date of Call: May 24, 2024
• Transcript Availability: Accessible on the company's website
• Participants:
• CEO: Mathews Markose
• CFO: Ramandeep Gill
• Moderator: Shweta Daptardar (Elara Securities)
• Communication Signed by: Srikanth G Menon (Company Secretary and Compliance Officer)
Financial Performance Highlights
• GNPA Reduction: 54% decrease, achieving GNPA of 10.17% and NNPA of 3.40%
• Profit After Tax: ₹122 crore, a 57% year-on-year increase
• Return on Assets (ROA): 6.35%
• Earnings Per Share (EPS): ₹74.58
• Assets Under Management (AUM): ₹2,018 crore
• Debt-to-Equity Ratio: Improved to 2.7x
• Customer Base Growth: 11% year-on-year increase
Strategic Initiatives
• Electric Vehicle Financing: Partnership with EV.fin, achieving ₹600 crores in co-lending with zero NPAs
• Asset Reconstruction: Reduced security receipt balance from ₹102.22 crores to ₹663 crores
• Funding Sources:
• 52% from working capital loans
• 25% from non-convertible debentures (NCDs)
• 20% from securitization
Management Insights
• Challenges: High NPAs and underdeveloped collection team upon new management takeover
• Technology Investments: Enhanced loan origination system and data analytics for better collections
• Portfolio Composition: 98% of customers own homes; 85% tied to high-resale-value vehicles
Future Outlook
• AUM Target: ₹3,000 crores, with two-wheelers contributing 60-65%
• Blended Yield: Currently at 17.52%, aiming for 20% in the upcoming year
• Disbursement Goals for FY '25:
• ₹1,100 crores for two-wheelers
• ₹150 crores for used cars
Operational Guidance
• OPEX Growth: Expected at 6% to 8% for FY '25 and FY '26
• GNPA Target: Aiming to reduce to 6% by year-end
• EV Financing Growth: Expected to increase from 1% to 4-5% of the book
Commitment to Shareholders
• Management emphasizes dedication to improving financial performance and enhancing shareholder value.

Muthoot Capital Services Limited Investor Conference Call Summary
Conference Call Announcement
• Date: January 29, 2024
• Focus: Unaudited financial results for Q3 and nine months ending December 31, 2023
• Key Participants: CEO Mathews Markose, CFO Ramandeep Gill
Financial Highlights
• Q3 Business Volume: INR 479 crores
• Total Portfolio: INR 1,944 crores
• Profit After Tax (PAT): INR 10.26 crores
• Return on Assets (ROA): 7.70%
• Gross Non-Performing Assets (GNPA): 10.69% (down 51% YoY)
• Debt-to-Equity Ratio: 2.92x
• Capital Adequacy Ratio (CRAR): 33.21%
• Target: 25% month-on-month business growth
Business Developments
• New Loan Origination System (LOS) for two-wheeler business improved turnaround times
• Market share increased to 8%
• Key leadership positions filled and co-lending partnerships expanded
• Plans for launching used car and light commercial vehicle businesses
Operational Concerns
• Decline in Net Interest Income (NII) and operating profit despite AUM growth
• Strategic decision to lower NII for asset quality improvement
• Monthly disbursement rate: INR 150 crores, targeting INR 200 crores next year
Asset Quality and Provisions
• Increase in provisions due to higher risk stage assets
• Repossession losses contributing to increased provisions
• Focus on maintaining asset quality and avoiding short-term gains
Future Growth Outlook
• Diversification beyond two-wheeler loans to include used cars and LCVs
• Target total book size of INR 10,000 crores in 3-4 years
• Expected ROA growth to around 4% by FY '25
Co-Lending and Yield Trends
• Co-lending business ROA: 3% to 3.5%
• Current ROA for own book: ~6%
• Yield trends expected to improve, with potential to surpass last year's blended yield of 19.5%
Credit Costs and Guidance
• Flat NII attributed to interest reversals and repossession losses
• Positive trend in credit costs observed, with a provision coverage ratio (PCR) of 1% for stage 1, 11% for stage 2, and 42.22% for stage 3
Conclusion
• Management expressed optimism for future growth and commitment to building value for investors.

Muthoot Capital Services Limited Investor Conference Call Summary
Announcement Details
• Date of announcement: November 2, 2023
• Conference call date: October 30, 2023
• Discussion on unaudited financial results for Q2 and half-year ending September 30, 2023
Key Financial Highlights
• Assets Under Management (AUM): INR 1,771 crores
• Business Volume Growth:
• Q1: INR 201 crores
• Q2: INR 328 crores
• Gross Non-Performing Assets (GNPA): Improved to 11.67% from 25% in March 2022
• Return on Assets (ROA): 17.17%
• Return on Equity (ROE): 60.59%
• Earnings Per Share (EPS): INR 50.59 (significant year-on-year increase)
Management Insights
• Disbursement Projections: Anticipated to reach INR 600 crores in Q3 due to festive season
• Strategic Business Units (SBUs): Restructuring into four SBUs focused on:
• 2-wheelers
• Used cars
• Light commercial vehicles (LCV)
• Digital sales
• Partnership Model: New collaboration with Muthoot Fincorp to enhance loan servicing and collections
Financial Metrics Discussion
• Sustainable ROA: Expected to be around 7% to 8% after addressing NPAs
• Cost of Funds: Decreased in Q2, expected to continue in Q3
• Operational Expenses (Opex): Stable, with potential increases for new initiatives
Challenges and Optimism
• High Repayment Rates: Linked to short loan tenures for two-wheelers
• Market Conditions: Decline in vehicle sales during Onam festival noted
• Growth Targets:
• Year-on-year profit growth target: 15-20%
• ROA target for FY24: 4.5% to 5%
New Business Model
• Business Correspondent Model: Leveraging Muthoot FinCorp's branch network to enhance focus on two-wheeler loans
• AUM Growth Target: Aiming for INR 10,000 crores in 3-4 years, with contributions from used cars and LCVs
Strategic Roadmap
• Growth Contributions: Detailed channel-wise contributions from various sales methods
• Partnerships: Collaborations with platforms like Bajaj Marketplace and BharatPe to boost visibility
Closing Remarks
• Expression of gratitude to participants by Mathews Markose and Shweta Daptardar.