BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Mahindra and Mahindra Financial Services Ltd.’s Q2 FY21 earnings beat was buoyed by lower than anticipated credit cost and gross non-performing loans contracting 220 basis points to 7%.
Some indicators of future stress are -- 13% of 75% moratorium pool has not been honoured even with a single instalment, 7.2% stage-two loans, 0.5% standstill NPLs, 82% September collection efficiency and estimated 8% restructuring -- all of which suggest improving trends but with the travails far from over.
With 2.2% existing contingency buffer, we expect 4% credit cost and 11% stage-three assets for FY21E.
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