Muthoot Finance Reports Strong December 2024 Results Amid Rising Debt Concerns

Muthoot Finance has recently reported its financial results for the quarter ending December 2024, showcasing a very positive performance across several key metrics. The company's score has seen an adjustment in evaluation, moving to 20 from 15 over the past three months, reflecting a favorable shift in its financial standing.
The quarterly net sales reached an impressive Rs 5,189.73 crore, marking the highest figure in the last five quarters and demonstrating consistent growth each quarter. Operating profit also peaked at Rs 3,784.50 crore, with a similar upward trend observed over the same period. Profit before tax, less other income, stood at Rs 1,854.37 crore, while profit after tax reached Rs 1,389.18 crore, both representing the highest quarterly figures in recent history.

Year-on-year comparisons reveal significant growth, with net sales increasing by 35.86%, profit before tax rising by 22.67%, and profit after tax climbing by 25.9%. Additionally, earnings per share hit a high of Rs 34.60, indicating enhanced profitability for shareholders.

However, it is worth noting that the debt-equity ratio has reached 3.10 times, suggesting a higher reliance on borrowing for operations, which may impact liquidity. Furthermore, the increase in non-operating income to Rs 31.95 crore raises questions about sustainability.

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