Muthoot Finance Shares Rise 4% After Rs 26 Interim Dividend Announcement for FY25

Muthoot Finance’s Dividend and Strategic Moves Boost Investor Confidence

Shares of Muthoot Finance Ltd saw a significant uptick of more than 4% on April 21 after the company announced an interim dividend of Rs 26 per share for FY25. The announcement spurred positive investor sentiment, with Muthoot Finance closing at Rs 2,206 per share on the Bombay Stock Exchange (BSE), marking a 4.5% rise from the previous trading day. The firm’s share price performance also reflects its strong financial performance and strategic decisions, which are expected to propel future growth.

The firm’s board also made notable recommendations, including raising its borrowing power to Rs 2 lakh crore. This move is part of Muthoot Finance’s broader strategy to enhance its financial flexibility, enabling it to capitalize on growth opportunities in the non-banking finance sector. In another important governance development, the board approved the appointment of George Joseph as an independent director.

Highlights:

• Muthoot Finance shares rise by 4.5% following Rs 26 interim dividend announcement.

• The record date for dividend eligibility is set for April 25, 2025.

• The board recommends increasing borrowing power to Rs 2 lakh crore.

• Muthoot Finance shares have a 52-week high of Rs 2,435 and a low of Rs 1,509.

• Market capitalization stands at Rs 88,560 crore.

Dividend Details and Record Date Set for April 25, 2025

The Rs 26 interim dividend per share declared by Muthoot Finance will be paid to shareholders who are on the company’s records as of the close of business hours on April 25, 2025. According to the company’s stock exchange filing, eligible shareholders include both those holding shares in physical form and those who have shares in electronic form via depositories. The interim dividend will be distributed within 30 days from the date of declaration, providing shareholders with an attractive return on their investments.

Highlights:

• Record date for interim dividend set as April 25, 2025.

• Dividend will be paid within 30 days from declaration.

• Eligible shareholders include those in both physical and electronic share forms.

Financial Performance: A Strong Quarter for Muthoot Finance

Muthoot Finance has demonstrated robust financial growth, underscored by a remarkable performance for the December quarter, where the non-bank lender reported an all-time high net profit of Rs 1,363 crore. This represents a 33% year-on-year increase, signaling the company’s strong operational efficiency and ability to generate consistent earnings. This performance sets the stage for further growth as Muthoot Finance continues to solidify its position in India’s rapidly growing non-banking financial sector.

The strong profit numbers combined with the strategic decisions, including the proposed increase in borrowing capacity, underline Muthoot Finance’s proactive approach to sustaining its market leadership. The company’s expansion plans, along with a diversified financial product offering, suggest that it is well-positioned to navigate both macroeconomic challenges and sectoral opportunities.

Highlights:

• Muthoot Finance reports record net profit of Rs 1,363 crore for the December quarter.

• Profit increase of 33% year-on-year highlights strong financial performance.

• The company’s strategic moves position it for sustained growth in the NBFC sector.

Outlook and Strategic Plans for FY25 and Beyond

Looking ahead, Muthoot Finance’s strategic plans involve scaling its operations and strengthening its financial position. The proposed increase in borrowing power to Rs 2 lakh crore is a crucial step in supporting the company’s expansion initiatives and meeting growing demand for its financial products. By raising its borrowing capacity, Muthoot Finance aims to maintain liquidity and flexibility, allowing it to efficiently fund future growth and capital expenditures.

With a consistent track record of delivering strong earnings and maintaining robust capital structure, Muthoot Finance is poised for further success in the coming quarters. The company’s ability to innovate and adapt to market changes will be key factors in its continued performance in the competitive non-banking financial services industry.

Highlights:

• Muthoot Finance looks to expand operations with increased borrowing power.

• The firm remains focused on maintaining liquidity and capitalizing on growth opportunities.

• Future outlook remains positive, supported by strong financial and strategic decisions.