Kochi | Muthoot Capital Services Limited, a leading two-wheeler finance company in South India was planning an aggressive foray into the North Indian States.
The company’s expansion in the north would be based out of Delhi and it was planning to tap the huge potential available for two-wheeler financing products starting with Delhi, Rajasthan and Punjab, a release said here today.
The company would expand to other northern states also, it said adding this was part of the company’s plan of expansion pan India and later the company also planned to expand its operations to the eastern part of India in the later part of the year.
‘The company is a leading provider of two wheeler finance in South India. The Company has already commenced expanding its business to North India. The plan is to expand operations to eastern states also later in the year. The Company’s aim is to consolidate its position as a national player in two wheeler financing segment.
While the business and income have been growing, the reduction in net profit is on account of the five month norm for NPA and 0.30% standard asset provisioning adopted by the Company from the first quarter itself,” Muthoot Capital Services Limited Managing Director Thomas George Muthoot said.
The Company’s Board of Directors approved the unaudited financial results of theMu company for the first quarter of the financial year ended till June 30 and the company had recorded net profit of Rs 3.75 crore for the quarter ended June 30, it added.
The Company achieved a total income of Rs 50.65 crore for the quarter ended June 30, which was higher by 12.06 per cent compared to Rs 45.20 crore for the quarter ended June 30, it said adding the financial expenses increased from Rs 19.21 crore to Rs 20.86 crore during the corresponding period, recording an increase of 8.59 per cent.
Non-financial expenses increased from Rs 17.83 crore to Rs 24.19 crore, which was an increase of 35.67 per cent, and as a result of the higher rate of increase in expenses contributed mainly by the increase in provisions, compared to the increase in revenues, the net profit declined to Rs 3.75 crore from Rs 5.41 crore for the corresponding quarter last year.
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