Muthoot Finance drops 8% after Q4 profit decline

Muthoot Finance shares fell as much as 9 per cent today after its net profit for the quarter fell 6 per cent to Rs 220 crore. The company said it expects its bottomline to grow by 10 per cent in 2013-14.

"Asset growth we should expect growth of around 10 per cent next year if things go like this... net profit should also move on that line," managing director George Alexander Muthoot told NDTV.

The company that lends money against household gold had reported  a net profit of Rs 235 crore in the fourth quarter of the previous fiscal.

Income from operations for the quarter came in at Rs 1401 crore against Rs 1284 in the year ago period.

Commenting on the recent correction in gold prices, Mr Alexander said, "For our customers correction in gold prices doesn't mean they will abandon their loan."

He said the company's capital adequacy is comfortable and it is offering an enhanced dividend of Rs 4.50 to shareholders.