Muthoot Finance profit surges 61%

Muthoot Finance on Tuesday registered growth of 61 per cent in netprofit at Rs 251 crore for the third quarter ending December, 2011.

The company had posted a net profit of Rs 155 crore in theyear-ago period.

For the nine months ending December 31, 2011, the profitstood at Rs 657 crore as against Rs 355 crore in the year-ago period.

The company has also drawn up plans to institute an EmployeeStock Option plan (ESOP) by the next financial year, Managing Director GeorgeAlexander Muthoot told reporters.

The Board of Directors had constituted a committee ofDirectors to approve and finalise terms of instituting the ESOP for its over22,000 employees, he said. This is the first time the company is launching thescheme and modalities are being worked out.

The quarter has witnessed significant changes in thecompany's operating environment. Significant gyrations in gold price and increasein cost of borrowing being the most important ones, company's Chairman M GGeorge Muthoot said.

It registered a growth of 61 per cent in its net profitdespite a 2.58 per cent rise in borrowing cost and the net interest marginreducing by 0.43 per cent.

The company's total income rose by 91 per cent during thequarter, touching Rs 1,231 crore as compared to Rs 645 crore in the thirdquarter of the previous financial year. Its profit after tax was Rs 375 crorein the quarter against Rs 155 crore in the same period in previous fiscal.