Motilal Oswal: Equitas Holdings’ Collection Efficiency Improving, Asset Quality Concerns Remain
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Motilal Oswal Report
Equitas Holdings Ltd. reported Q2 FY21 profit after tax of Rs 1 billion (higher than the estimate), driven by higher net interest income as margins expanded approximately 40 basis points while provisions were lower than expected.
Operating profit growth was robust at 67% YoY supported by lower opex. Asset under management growth came in at 26% YoY while deposit traction was strong at 9% QoQ.
Though collection efficiency for October 2020 improved to 94% (including arrears), billing efficiency stood at 87% with management guiding for lower trends in the micro finance institution book.
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