MAS Financial Services Limited results - 1st quarter FY 22

- A Robust Financial Performance

- 105 Quarters of Consistent Financial Performance

AHMEDABAD, India, Aug. 12, 2021 /PRNewswire/ -- The Board of Directors of MAS Financial Services Limited (MAS Financial) (BSE: 540749) (NSE: MASFIN), specialized in MSME financing, announced today the unaudited financial results for the first quarter ended 30^th June, 2021.

The consistent financial performance during all the past turbulent period is the testimony of the strong fundamentals of the company; which is being followed over two decades.

Commenting on the performance, Mr. Kamlesh Gandhi - Founder, Chairman & Managing Director, MAS Financial, said, "In consonance with our mission and vision of creating value for stakeholders on a very large scale through efficient last mile delivery of credit, the main focus of the company continues to remain on maintaining :

1. Strong capital base.
2. High level of liquidity.
3. The quality of Assets.
4.  High provisioning buffers.
5.  Constant engagement with all the stakeholders for understanding the evolving situation.

With a Tier-1 capital adequacy ratio of 26.55 % and total capital adequacy of 28.42 %, sufficient liquidity due to very efficient liability management, stable quality of portfolio of 1.74% of net stage 3 assets and by maintaining additional provisioning buffer which stands at 1.34% of on book assets should not only enable the company to navigate the current unprecedented situation successfully but also regain its growth trajectory of 20-25% once the economy normalizes."

As per IND-AS

At the outset, YoY financial results are not comparable.

MAS Financial Services Limited reports Assets under Management (AUM) of INR 5161.63 Crore and profit after tax of INR 36.83 Crore for the quarter ended 30^th June 2021 from INR 5657.73 Crore and INR 36.59 Crore respectively for the quarter ended 30^th June 2020.

• A growth of 0.64% in PAT over the corresponding period of the previous year.
• A contraction of 8.77% in AUM over the corresponding period of the previous year, due to adoption of cautious approach on disbursement while maintaining high Collection efficiency.
• The total special COVID provision as on 30^th June 2021 stood at INR 54.27 Crore for the total on book assets of INR 4047.10 Crores i.e. 1.34 %. 
• The portfolio quality remained stable at 1.74 % net stage 3 assets of AUM as compared to 1.14% over the corresponding period of the previous year, despite of the prolonged ongoing crisis followed by the unprecedented pandemic situation.
• During the quarter, the company has not restructured fresh loan but is in the process of assessing COVID-19 pandemic stress on the borrower and will invoke the resolution plans for the eligible borrowers in the September quarter (Including Assigned Portfolio) based on the parameters laid down in accordance with the resolution policy approved by the Board of Directors of the Company and in accordance with the guidelines issued by the RBI.

The Disbursement during the quarter ended 30^th June 2021 was INR 1,041.37 Crore as compared to INR 107.97 Crore during the quarter ended 30^th June 2020.

Performance Highlights:

Capital Adequacy Ratio (including Tier II capital) as of 30^th June, 2021 stood at 28.42 %. The Tier-I capital stood at 26.55 %.

(INR in CR)

 

  (INR in CR)

*Represents underlying assets in each of the category. As on 30^th June, 2021 57.48% of the total underlying assets is through various NBFCs. 

Note on MAS Rural Housing and Mortgage Finance Limited (Subsidiary)

The Board of Directors of MAS Rural Housing and Mortgage Finance Limited in their meeting held on 4^th August 2021 took on record the unaudited Financial Results of the company for first quarter ended 30^th June, 2021.

As per IND-AS

MAS Rural Housing and Mortgage Finance Limited reports Assets under Management (AUM) of INR 294.70 Crore and profit after tax of INR 0.82 Crore for the quarter ended 30^th June 2021 from INR 284.16 Crore and INR 1.05 Crore respectively for quarter ended 30^th June 2020.

 - A growth of 3.71 % in AUM and contraction of 21.72 % in PAT over the corresponding period of the previous year due to higher provisioning.

- The total special COVID provision as on 30^th June 2021 stood at INR 3.00 Crore for the total on book assets of INR 260.14 Crores i.e. 1.15 %.

Performance Highlights:

• The portfolio quality remained stable despite of the ongoing crisis followed by the unprecedented situation at 0.42% net stage 3 assets of AUM as compared to 0.26% over the corresponding period of the previous year.
• Capital Adequacy Ratio (including Tier II capital) as of 30^th June 2021 stood at 49.97 %. The Tier-I capital stood at 35.38 %.      

    (INR in CR)

Team MAS remains committed to its mission of excellence through endeavours.

For and on behalf of the Board of Directors

Kamlesh C. Gandhi
(Chairman & Managing Director)
(DIN - 00044852)
Place : Ahmedabad
Date :  August 11, 2021