Motilal Oswal: Equitas Holdings’ Collection Efficiency Improving, Asset Quality Concerns Remain
A local woman signs a register to receive a loan, as a microfinance company employee looks on. (Photographer: Adeel Halim/Bloomberg)

Motilal Oswal: Equitas Holdings’ Collection Efficiency Improving, Asset Quality Concerns Remain

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.

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.

Click on the attachment to read the full report:

Motilal Oswal Equitas Holding Q2FY21 Result Update.pdf

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