MAS Financial Services Limited results - 4th quarter FY 21

- A Robust Financial Performance
- 104 Quarters of Consistent Financial Performance

AHMEDABAD, India, May 20, 2021 /PRNewswire/ -- The Board of Directors of MAS Financial Services Limited (MAS Financial) (BSE: 540749) (NSE: MASFIN), specialized in MSME financing, announced today the audited financial results for the year and quarter ended 31^st March, 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 24.81% and total capital adequacy of 26.85%, sufficient liquidity due to very efficient liability management, stable quality of portfolio of 1.52% of net stage 3 assets and by creating and maintaining additional provisioning buffer which stands at 1.39% 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

MAS Financial Services Limited reports Assets under Management (AUM) of  INR 5372.44 Crore and profit after tax of  INR 36.53 Crore for the quarter ended 31^st March 2021 from INR 5966.28 Crore and INR 34.50 Crore respectively for the quarter ended 31^st March 2020

• A growth of 5.88% in PAT over the corresponding period of the previous year.
• A contraction of 9.95% in AUM over the corresponding period of the previous year, due to adoption of cautious approach on disbursement while maintaining high Collection efficiency.

The profit after tax for year ended 31^st March 2021 is INR 143.50 Crore - A contraction of 13.84 % over the corresponding period of the previous year mainly due to contraction in AUM.

• The total special COVID provision as on 31^st March 2021 stood at INR 56.23 Crore for the total on book assets of INR 4049.75 Crores i.e. 1.39 %. The additional special COVID provision during the FY 2021 was INR 35.90 crore. The special COVID provision during FY 2020 was INR 20.33 Crore.
• The portfolio quality remained stable at 1.52% 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.

The Disbursement during the quarter ended 31^st March 2021 was INR 1294.11 Crore as compared to  INR 1031.23 Crore during the quarter ended 31^st December 2020 resulting into AUM of INR 5372.44 Crore as on 31^st March 2021.  AUM as on 31^st December 2020 was INR 5054.66 Crore.

Performance Highlights:

Capital Adequacy Ratio (including Tier II capital) as of 31^st March, 2021 stood at 26.85%. The Tier-I capital stood at 24.81%.

                                                                                                                                                                                 

Amortising the gain on assignment of loans over the tenure of the assets in place of booking it upfront - Further strengthening the fundamentals of the company:

For more transparent and fair representation, on de-recognition of financial assets (assigned loans), the gain has been recognized as deferred revenue i.e. "Interest Receivable on loan transfer transactions" (Other Non-Financial Liabilities) in place of Retained earnings which is amortized over the maturity of the financial assets derecognized (assigned loans) in place of recognizing gain upfront through profit & loss statement as made applicable while migrating to IND AS. The necessary adjustments are done accordingly for all the related period ensuring that the assets are recognized at fair value in lines with the IND AS requirement, and the gains would be amortized over the maturity of assets.

For detailed understanding, please visit following web address: https://www.mas.co.in/financial-results.aspx#

Further, NBFC industry body 'Finance Industry Development Council' (FIDC) which is represented by more than 100 NBFCs, has made representation to Reserve Bank of India and National Financial Reporting Authority ('NFRA') whereby the said change, which is adopted by the company in accounting policy has  been requested.

Dividend

• In consonance to our policy of rewarding the shareholders the Board of directors of the Company has recommended final dividend of Rs.1.5 per equity share of face value of Rs. 10 each, which is subject to approval by shareholders of the Company.

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 12^th May 2021 took on record the audited Financial Results of the company for the year and quarter ended 31^st March, 2021.

As per IND-AS

MAS Rural Housing and Mortgage Finance Limited reports Assets under Management (AUM) of INR 284.89 Crore and profit after tax of INR 2.89 Crore for the year 31^st March 2021 from INR 286.54 Crore and INR 1.72 Crore respectively for year ended 31^st March 2020.

• A growth of 68.05% in PAT and contraction of 0.58% in AUM over the corresponding period of the previous year.
• The total special COVID provision as on 31^st March 2021 stood at INR 3.31 Crore for the total on book assets of INR 264.37 Crores i.e. 1.25 %. The additional special COVID provision was of INR 0.86 Crore during the quarter and INR 1.29 crore during the FY 2021. The special COVID provision during FY 2020 was INR 2.02 Crore.
• The Profit after tax for quarter ended March 21 is INR 0.20 Crore in comparison to Rs. - 0.89 Crore in the corresponding period of the previous year.

Performance Highlights:

• The portfolio quality remained stable despite of the ongoing crisis followed by the unprecedented situation at 0.26% net stage 3 assets of AUM as compared to 0.25% over the corresponding period of the previous year.
• Capital Adequacy Ratio (including Tier II capital) as of 31^st March 2021 stood at 43.45%. The Tier-I capital stood at 35.12%.                                                        

                                                                                                                                             

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 :  May 19, 2021