The shares of the financial services provider gained up to 6 percent after the company partnered with Greaves Finance Ltd to expand electric two-wheeler financing across India.
With a market capitalization of Rs 480.84 crore, the shares of Muthoot Capital Services Ltd were trading at Rs 292.35 apiece, increasing around 0.27 percent as compared to the previous closing price of Rs 291.55 per share.
According to the company filing, Muthoot Capital Services Ltd partnered with evfin, the ev-focused lending platform of, Greaves Finance Ltd to expand electric two-wheeler financing across India. The collaboration entails a total deal size of up to INR 150 crores (USD 18 million), highlighting the scale and ambition of the initiative to drive widespread adoption of electric vehicles in India.
Furthermore, The demand for electric vehicles (EVs) continues to surge in India, this collaboration will accelerate the adoption of sustainable transportation alternatives and this partnership also aims to facilitate affordable, customized, and convenient financing options for customers looking to purchase electric two-wheelers.
Looking into Muthoot Capital Services Ltd’s performance, revenue decreased by 15 percent from Rs 113 crore in Q3 FY23 to Rs 96 crore in Q3 FY24. During the same period, net profit decreased by 50 percent, from Rs 20 crore to Rs 10 crore.
Looking at the company’s profitability indicators, the return on equity (RoE) increased from (44.34) percent in FY 21-22 to 16.08 percent in FY 22-23, while the return on capital employed (RoCE) jumped from (12.31) percent to 31.86 percent.
The Net Interest Margin (NIM) is reported at 66.7% for the current financial year as against 63.6% in the Financial Year 2021 – 2022.
Muthoot Capital Services Limited’s primary activity is financing the purchase of autos, mostly two-wheelers and secondhand four-wheelers, against hypothecation of the vehicles, as well as the issuing of personal and corporate loans. It lends to small and medium-sized firms (SMEs) and provides microfinance services.
Written by:- Abhishek Singh
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