BENGALURU, Aug 11 (Reuters) – India’s Muthoot Finance (MUTT.NS) reported quarterly revenue development for the primary quarter in six, as file excessive costs spurred demand for gold loans.

The gold financing firm stated its revenue grew greater than 21% to 9.75 billion rupees ($117.81 million) for the primary quarter ended June 30.

Muthoot’s curiosity earnings, which is the distinction between curiosity earned and paid, rose 19.2% to 29.58 billion rupees. Gold costs hit record high levels this quarter – excessive costs profit gold mortgage lenders as clients pledge extra bullion as collateral, pushing up credit score sizes.

The common mortgage ticket dimension grew by 14% year-over-year within the quarter whereas the overall weight of pledged gold jewelry rose by 2%, the corporate stated in a submitting.

Increasing acceptance of gold financing within the north- and west- Indian markets additionally aided the south India-centric Muthoot and its smaller rival Manappuram Finance, analysts stated.

Manappuram reported a 76% rise in Q1 revenue earlier within the week.

“We continue to foresee improved demand conditions for gold loans… in the current financial year,” Muthoot Group Chairman George Jacob Muthoot stated in an announcement.

Total bills for the Kochi, Kerala-based firm rose virtually 20% to 17.12 billion rupees, led by larger finance prices.

The firm missed avenue revenue estimates of 9.86 billion rupees, in keeping with Refinitiv IBES information.

Shares of Muthoot Finance closed 1.08% down forward of outcomes, taking its year-to-date positive factors to 27%.

($1 = 82.7580 Indian rupees)

Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman

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