Goal is to double non-gold revenue share to 30% by FY28

Muthoot FinCorp, the flagship company of the Muthoot Pappachan Group, aims to double the revenue share from its non-gold lending portfolio to 30% over the next three years.

- Shaji Varghese

Chief executive Shaji Varghese speaks to Narayanan V about the diversification strategy, impact of the RBI's draft gold lending guidelines and more. Excerpts:

What led to the 20% decline in Q4 net profit?

Revenues for the quarter grew 23% year-on-year to ₹1,478.59 crore. However, this didn't translate into higher profits due to increased expenditure. Being the end of the financial year, we incurred higher marketing costs. We've also been expanding our capacity to meet future demand.

Over the past 12 months, we added 200 new branches, taking the total number to 3,700 across the country. Employee costs associated with these new branches were fully reflected in Q4. These are productive investments, and we expect to see revenue benefits from next year. That said, our full-year net profit rose 40% to ₹787.15 crore in FY25.

What is your product diversification strategy?