Sustaining Growth and Profitability in Muthoot Finance - A Five-Year Financial Performance Analysis
Title
Sustaining Growth and Profitability in Muthoot Finance – A Five-Year Financial Performance Analysis
Authors
Jovin et al.,
Keywords
Gold Loans | Muthoot
Publication Details
Vol: 11; No: 2; Jun. 25 | ISSN: 2455-3921
Abstract
The financial performance of Muthoot Finance from 2020 to 2024 exhibits a strong growth trajectory driven by increasing demand for gold loans, rising loan disbursements, and an expanding customer base. Revenue surged from Rs. 9,707 crores in 2020 to Rs. 15,163 crores in 2024, reflecting the company’s dominance in the gold loan segment. However, operational expenses also grew significantly, impacting profit margins. Despite fluctuations in net profit, which peaked at Rs. 4,468 crores in 2024, the company maintained stable operational efficiency. The operating profit margin, though slightly declining, remained robust at 76.11% in 2024. Earnings per share (EPS) and dividends per share witnessed consistent growth, showcasing shareholder value creation. To sustain its market leadership, Muthoot Finance must focus on digital transformation, product diversification, cost optimization, and strategic expansion. Strengthening risk management frameworks and enhancing customer engagement will further drive long-term profitability and stability.
Corresponding Author
Dr. J. Robert Edwin Chester, Associate Professor, Department of Commerce, KLEF (KL University), Andhra Pradesh, India.
