Muthoot Finance jumps on strong Q2 outcome

Muthoot Finance jumped 6.29% to Rs 177.50 at 11:09 IST on BSE after net profit surged 88.3% to Rs 215.56 crore on 108.6% spurt in operating income to Rs 1104.87 crore in Q2 September 2011 over Q2 September 2010.

The result was announced on Wednesday, 26 October 2011, when the Indian equity market was closed on account of Diwali.



Meanwhile, the BSE Sensex was up 461.11 points, or 2.67%, to 17,749.94.

On BSE, 76,000 shares were traded in the counter compared with average volume of 13,000 shares over the past two weeks.

The stock hit a high of Rs 183.10 and a low of Rs 172.90 so far during the day.

Muthoot Finance's outstanding gold loans surged 81% to Rs 20766 crore in Q2 September 2011 over Q2 September 2010.

Muthoot Finance is the largest gold financing company in India in terms of loan portfolio. The company provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.