MAS Financial Services Q4 Review - Earnings Inline Despite NIM Compression, High Credit Costs: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.MAS Financial Services Ltd.’s Q4 FY23 profit after tax rose 23% YoY to Rs 556 million. Net interest income grew 36% YoY to ~Rs 1.3 billion, while opex at Rs 381 million grew 30% YoY. Pre provision operating profit rose 39% YoY to Rs 887 million. FY23 profit after tax grew 28% YoY to ~Rs 2 million (previous year: Rs 1.6 billion).Credit costs grew 28% QoQ to Rs 182 million (our estimate: Rs 119 million). Total Covid related provisions stood at ~0.3% of on-book assets. Q4 FY23 disbursements grew 27% YoY/12% QOQ to ~Rs 25 billion. FY23 disbursements surged 50% YoY to Rs 91.3 billion (previous year: Rs 60.8 billion). Asset quality improved QoQ, with gross stage-III/net stage-III at 2.15%/1.5%. 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. We increase our FY25E earnings per share by ~4% to factor in higher loan growth..Click on the attachment to read the full report:.Ujjivan Small Finance Bank Q4 Results Review - Robust Performance, Yet Again: Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

MAS Financial Services Q4 Review - Earnings Inline Despite NIM Compression, High Credit Costs: Motilal Oswal

Opex ratio moderates but likely to remain high; asset quality stable.

Choose a plan