Sensex Trades Over 200 Points Higher, Dow Futures Down By 39 Points

Commenting on the company's performance, Managing Director George Alexander Muthoot said -

  • We have seen good business growth during the last year, especially in the second and the third quarters. After the pandemic, there was a lot of demand for gold loans.

    Everybody wanted to restart their business and wanted quick funding, which is why the demand for gold loans grew.

The lender was able to grow its asset under management (AUM) in the gold loan segment by 27% in 2021 compared to a growth of 22% in the previous year.

The company's gross non-performing assets (NPAs) or Stage-3 assets on gross loan assets also improved to 0.88% as against 2.16% in the previous quarter.

With respect to the performance this quarter, Mr Muthoot said the first half of April was okay in terms of business but after that demand got hit in May as branches were closed. He expects demand to improve by the end of this month.

He also expects AUM to grow by 15% in 2022.

We will keep you posted on more updates from this space. Stay tuned.

At the time of writing, Muthoot Finance shares were trading up by 6.7% on the BSE.

Moving on to news from the software sector...

Wipro Sells Stake in Denim Group for US$ 22.4 m

IT company Wipro on 2 June said that it has sold its entire stake in the Denim Group for a consideration of US$ 22.4 million (Rs 1.6 bn).

In March 2018, Wipro acquired a 33.3% stake in Denim Group and Denim Group Management, LLC, an independent application security firm, for a consideration of US$ 8.8 m, Wipro said in a regulatory filing.

"As part of the recently announced acquisition of Denim Group by Coalfire, Wipro has sold its entire stake in Denim Group for a consideration of $ 22.4 m. Consequent to the sale, Wipro does not hold any stake in the company," the company said in a BSE filing.

This is the second company in which Wipro had sold its stake.

On 30 May, in a regulatory filing, the company said it is selling its stake in Ensono Holdings, a hybrid IT services provider for US$ 76.2 m. In March 2018, Wipro had invested US$ 55 m for a 10.2% stake in Ensono's combined entity, Ensono Holdings.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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