MAS Financial Services Q3 Results Review - Steady Earnings Momentum With Healthy AUM Growth: Motilal Oswal

Motilal Oswal Report

MAS Financial Services Ltd.’s Q3 FY23 profit after tax rose 28% YoY to Rs 513 million (inline). Net interest income grew 41% YoY to Rs 1.25 billion, while opex at Rs 421 million grew 50% YoY.

Pre provision operating profit rose 36% YoY to Rs 827 million. Nine months-FY23 profit after tax grew 27% YoY to Rs 1.5 billion (previous year: Rs 1.15 billion).

Credit costs grew 17% QoQ to Rs 142 million (our estimate: Rs 76 million).  Q3 FY23 disbursements grew 39% YoY but declined 2% QoQ to ~Rs 22.2 billion. 9MFY23 disbursements surged 61% YoY to Rs 66.4 billion (previous year: Rs 41.2 billion).

Asset quality was stable QoQ, with gross stage-III/net stage-III at 2.2%/1.6%. In micro, small and medium enterprise and SME lending, MAS Financial Services is relatively better than its peers. Capital adequacy and liquidity on the balance sheet remained healthy.

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