Muhoot Microfin Limited, one of the leading microfinance companies, has reported a 155% increase in its profits to Rs 203.31 crore for the financial year ending 31 March. The company had made a profit of Rs 79.7 crore in the previous financial year.
Muhoot Microfin has assets under management of ₹9,209 crore as of March 31. The AUM has grown by more than 46% YoY from ₹6.3 billion in the previous fiscal year.
The company’s asset quality also improved from 6.26% GNPA in FY22 to 2.97% in FY23 and from 1.55 NNPA in FY22 to 0.60% in FY23.
-
Also read: The microfinance industry will record 25% growth in FY24 due to increased disbursements
The company’s customer base has increased by 35% to 2.77 million in FY23 from 2.05 million in FY22, driven by a 68% increase in outlay to Rs 8,104 crore in the FY23 from Rs 4,800 crore in the previous FY.
In addition, Muhoot Microfin has a 5-star ESG rating, signifying a leadership position in sustainability with a positive track record of material risk management.
The microlender has a strong in-house IT team that has worked to improve its digital collections, which exceeded Rs 1000 crore in FY23.
The company’s digital bank-to-bank and wallet-to-wallet collection reached 34 percent. The ‘Mahila Mitra’ company customer app has crossed 1.3 million downloads with 7 lakh active customers availing it.
In terms of expansion, the company is considering starting operations in Andhra Pradesh and Telangana and further expanding in the northern states of India.
-
Also read: It is a myth that MFIs empower women