Muthoot Microfin Ltd

The provided transcript of Muthoot Microfin Limited's Capital Markets Day 2026 does not contain explicit information regarding the company's current or expected order book or pending orders. The document primarily discusses: - Growth guidance and asset under management (AUM) targets (INR 14,000 crores currently, aiming for over INR 20,000 crores). - Product diversification with a focus on qualitative and sustainable growth. - Rejection rates, underwriting standards, and credit quality. - Expansion into MSME, LAP, and secured products. - Technology and process improvements. - Funding and liquidity profile. No direct references are made to order book size or pending orders in the microfinance or lending context. If you require details on the order book or pending orders, please provide specific details or documents addressing these aspects.

- Currently, Muthoot Microfin has around 22,500 retail investors subscribed to its NCDs and continues to raise funds through this channel. - The company maintains strong liquidity with INR700-800 crores of free funds and contingency plans to raise INR2,000-3,000 crores quickly if needed. - In the last financial year, the company borrowed approximately INR9,537 crores even in a difficult market, reducing its cost of funds by 75 basis points. - Borrowing is diversified across 62 financial institutions, with increasing portions coming from NCDs and ECBs (currently 22%, targeted to grow to 40% by 2030). - The new government CGS fund scheme is less beneficial to larger MFIs like Muthoot Microfin due to limits but may be partly utilized. - No explicit mention of imminent equity fundraising in the excerpts provided.

- Continued investment in technology and IT infrastructure to support business growth and scalability, including zero-trust security mechanisms, AI-based credit underwriting, real-time analytics, and proprietary software like Serene Pro, Mahila Mitra app, and M-Info app (Page 22). - Focus on software ecosystem development for loan origination, management, collection, risk, audit, and customer engagement, making systems future-ready and scalable (Page 22). - Building diversified product lines beyond JLG loans to include individual loans, gold loans, MSME, LAP, and natural calamity insurance products for climate risk mitigation (Pages 11, 18, 39). - Credit guarantee insurance applications (CGFMU) being pursued to mitigate credit risk in higher-risk pockets (Page 37). - Strengthening operational capabilities with AI-driven underwriting and collection strategies for better efficiency and sustainable growth (Pages 11, 29). These strategic and capital investments are designed to achieve the INR 30,000 crores AUM vision by 2030 with qualitative and sustainable growth.

- Muthoot Microfin targets a CAGR of around 20% in asset under management (AUM) growth through to 2030, aiming to reach INR 30,000 crores by then. - The FY27 AUM growth guidance is conservative at 12%-15%, with expectations to ramp up to approximately 23% CAGR from FY28 onwards. - The calibration to 20% growth reflects a focus on qualitative and sustainable expansion given the increasing asset base (from INR 10,000 crores post-COVID to over INR 14,000 crores currently). - Diversification into other products like MSME LAP, unsecured business loans, and gold loans supports growth and reduces microfinance cycle risks. - Growth is by design to maintain asset quality and sustainable, consistent income streams. - Branch and staff productivity improvements (disbursements per staff up from INR 7.6 lakhs to ~INR 12 lakhs monthly) and digital collections enhancement are expected to aid growth.

- The company targets a sustainable and qualitative CAGR growth of ~20% in assets under management (AUM) going forward, considering portfolio quality (Page 47). - By 2030, Muthoot Microfin aims to achieve a Rs. 30,000 crore AUM, 5%+ ROA, and over 20% ROE (Pages 7, 33, 39). - NIMs (Net Interest Margins) are expected to expand from around 12% currently to 13.5%-14% by 2030, driven by improved portfolio yields and lower cost of funds (Pages 16, 33, 39). - Operating expenses are targeted to reduce from ~6.4% to below 5% by 2030 due to higher productivity and leveraging existing infrastructure (Page 33). - Credit costs are expected to reduce below historical averages (~3%), aided by diversification and improved underwriting (Pages 18, 33). - Overall, these factors are expected to help achieve a consistent 5% ROA and 20%+ ROE by 2030 (Page 33).