Muthoot Finance To Use Savings From Tax Cuts For Working Capital Needs
The company needs around Rs 5,000 crore annually for business growth, according to its managing director.
Muthoot Finance Ltd. will utilise the money it saves from the corporate tax cuts announced last month to meet its working capital needs.
That’s according to the financial services company’s Managing Director, George Alexander Muthoot, who said it needs around Rs 5,000 crore annually for business growth. “As you know, we’re always in need of money for working capital,” he told BloombergQuint in an interaction. “We’ll be using non-convertible debentures to fund the capital that we need for growth this year.”
The tax cut, Muthoot said, will also help in supplementing additional capital for growth. “This Rs 250 crore (estimated savings from tax cut this year) will come in handy,” he said. “We will use that (savings) as working capital for repaying some debt.”
Muthoot Finance will also raise money from banks, commercial papers and external commercial borrowings to meet its growth targets, Muthoot said.
WATCH | This is how Muthoot Finance plans to utilise its savings from corporate tax cuts this year.