Motilal Oswal: MAS Financial Services Outlines Sharp Improvement In Collection Efficiency; Cautious On Growth 
A customer withdraws a stack of Indian twenty rupee banknotes at a branch of the HDFC Bank Ltd. in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

Motilal Oswal: MAS Financial Services Outlines Sharp Improvement In Collection Efficiency; Cautious On Growth 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

MAS Financial Services Ltd. posted Q1 FY21 profit after tax of Rs 356 million (7% miss). While net interest income was largely in-line, lower-than-expected operational expenses (35% below estimate) resulted in a 10% beat in pre-provision operating profit (Rs 775 million).

Lower operational expenses was due to a tweak in the employee cost structure toward a variable structure. The entire provisioning in Q1 FY21 (Rs 299 million versus estimate of Rs 200 million) was toward contingent provisions for Covid-19. It stands at 1.6% of balance sheet loans.

June and July collections (in value terms) stood at 74% and 87% (versus 45–50% over April–May 2020).

Overall earnings and balance sheet growth are largely in line with expectations. We maintain our estimates for FY21/FY22E and expect return on asset and return on equity at approximately 3.8% and 16.4%.

Click on the attachment to read the full report:

Motilal Oswal MAS Financial Services Q1FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.