New Delhi, May 15 (IANS) Shares of gold loan NBFC Muthoot Finance declined over 8 per cent on Friday as the company reported weak operational performance in March quarter, which highlighted concerns over falling customer numbers and rising impairments despite strong profit growth.

On the BSE, the NBFC stock fell as much as 8.12 per cent to hit an intraday low of Rs 3,242.20 apiece. At the last count, the stock was trading at Rs 3,290, down 6.77 per cent from the previous close.

In its quarterly financial report, the gold loan financier reported a 2 per cent quarter-on-quarter decline in active customers, marking the second consecutive quarter of weakness in its low-ticket borrower segment.

Meanwhile, gold tonnage -- a key indicator reflecting the quantity of gold pledged by customers -- also declined 4 per cent sequentially to 196 tonnes during the quarter.

Following the results, global brokerage Jefferies cut its target price on the stock by 8 per cent or Rs 400 to Rs 4,350 from Rs 4,750.

Despite the operational concerns, the company reported strong financial performance during the quarter. Standalone net interest income surged to Rs 5,194 crore, while net profit stood at Rs 3,086 crore.

In addition, gold loan assets under management (AUM) jumped 50 per cent year-on-year to Rs 1,54,084 crore. Net interest margin improved sequentially to 13.38 per cent from 12.77 per cent. However, asset quality concerns persisted during the quarter.

The stock has also remained under pressure this year, declining more than 10 per cent year-to-date and around 8 per cent over the past one month.

Muthoot Finance touched a 52-week high of Rs 4,149 and a 52-week low of Rs 2,028.10 on the BSE.

Earlier in April, the company approved its highest-ever interim dividend of Rs 30 per equity share for FY26.

According to an exchange filing, the board of directors, at a meeting held earlier, approved an interim dividend at 300 per cent, translating to Rs 30 per equity share for the financial year 2025-26.

--IANS

ag/