NBFCs Q3 Earnings Preview: A Decisive Quarter, Says Motilal Oswal
A customer counts Indian rupee banknotes. (Photographer Dhiraj Singh/Bloomberg)

NBFCs Q3 Earnings Preview: A Decisive Quarter, Says Motilal Oswal

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

Q3 FY21 is the first quarter post lifting of the moratorium. Across product segments, there is expected to be month-on-month improvement in collection efficiency (CE).

Adjusted for arrear collections, on-time CE is only marginally below pre-Covid-19 levels.

In addition, a large portion of customers who had not paid a single EMI during the moratorium period have started making payments in Q3.

The festival season was largely healthy across segments. Home loans witnessed a sharp improvement in volumes, with disbursements expected to be up YoY for the large players.

In the vehicle finance segment, two-wheeler volumes were slightly tepid, while passenger vehicle and tractor volumes remained healthy.

Click on the attachment to read the full report:

Motilal Oswal NBFC Q3FY21 Results Preview.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 author entity 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.