A Robust Financial Performance
101 Quarters of Consistent Financial Performance
The Board of Directors of MAS Financial Services Limited (MAS Financial) (BSE: 540749) (NSE: MASFIN), a specialized retail financing company, announced today the unaudited financial results for the first quarter ended 30 June, 2020.
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, “Enabled by our 25 years of experience, the main focus of the company during this challenging time remained 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 32.20%, sufficient liquidity due to very efficient liability management, excellent quality of portfolio of around 1.14% of net stage 3 assets and by creating additional provisioning buffer which stands at 1.62% of on book assets should enable the company to navigate the current unprecedented situation successfully.
Update on Moratorium
• Borrowers: The constant engagement with the clients resulted in to 74% and 87% collection efficiency by value in the month of June and July respectively despite of having granted moratorium. This effectively translates to 26% and 13% of the customers by value under moratorium for the month of June and July respectively.
• Lenders: The Company did not avail any moratorium facility from its lender as the liquidity position of the company remained strong.
As per IND-AS
MAS Financial Services Limited reports Assets under Management (AUM) of INR 5657.73 Crore and profit after tax of INR 35.64 Crore for the quarter ended 30 June 2020 from INR 5578.21 Crore and INR 40.73 Crore respectively for quarter ended 30 June 2019
• A growth of 1.43% in AUM and contraction of 12.50 % in PAT over the corresponding period of the previous year.
• The Company has made additional special contingent provision of INR 30.54 Crore during the quarter due to Covid-19, the total special COVID provision as on 30th June 2020 stood at INR 50.88 Crore for the total on book assets of INR 3134.75 Crores i.e.1.62% of the total on book assets
(Excluding this special contingent provision the PAT stands at INR 58.48 Crore registering growth of 43.59% over the corresponding period of the previous year )
• The portfolio quality remained stable at 1.14% 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 COVID provisioning is not netted off against assets in any stage and the same stands as the additional provisioning.
Performance Highlights:
Capital Adequacy Ratio (including Tier II capital) as of 30 June, 2020 stood at 34.93%. The Tier-I capital stood at 32.20%.
| (INR in CR) | ||||
| Particulars | Q1’21 | Q1’20 | QoQ | FY 20 |
| Assets Under Management | 5657.73 | 5578.21 | 1.43%↑ | 5966.28 |
| Total Income | 159.12 | 159.23 | 0.07%↓ | 683.12 |
| Profit Before Tax | 47.64 | 62.66 | 23.97%↓ | 234.48 |
| Profit After Tax | 35.64 | 40.73 | 12.50%↓ | 178.21 |
| Profit After Tax (Without special contingent provision for Covid-19) | 58.48 | 40.73 | 43.59%↑ | 193.43 |
| Gross Stage 3 Assets % to AUM | 1.41% | 1.39% | 0.02 bps↑ | 1.42% |
| Net Stage 3 Assets % to AUM | 1.14% | 1.14% | 0.00 bps | 1.14% |
– Note: The Company has made further special contingent provision of INR 30.54 Crore during the quarter due to Covid-19, thereby the total special COVID provision as on 30th June 2020 stood at INR 50.88 Crore. Excluding this special contingent provision the PAT stands at INR 58.48 Crore registering growth of 43.59% over the corresponding period of the previous year.
| (INR in CR) | |||
| Asset Under Management (AUM)* | Jun-20 | Jun-19 | YoY |
| Micro-Enterprise loans | 3424.15 | 3595.46 | 4.76%↓ |
| SME loans | 1674.02 | 1375.48 | 21.70%↑ |
| 2-Wheeler loans | 400.77 | 455.17 | 11.95%↓ |
| Commercial Vehicle loans | 158.78 | 152.10 | 4.40%↑ |
| TOTAL AUM | 5657.73 | 5578.21 | 1.43% ↑ |
*Represents underlying assets in each of the category. As on 30 June, 2020 57.32% of the total underlying assets is through various NBFCs.
Following information explains the net impact on income due to recognition of assigned portfolio based on INDAS:
| (INR in CR) | ||||
| Sr. No. | Particulars | Q1 FY 21 | Q1 FY 20 | FY 20 |
| 1 | Upfront spread booked on present value basis on portfolio assigned (based on INDAS) | 14.44 | 20.03 | 107.49 |
| 2 | Income booked on asset created out of spread receivable (based on INDAS) | 1.92 | 1.54 | 6.39 |
| 3 | Spread that would have been booked on assigned portfolio on amortization basis (based on I-GAAP) | 17.64 | 25.85 | 107.56 |
| 4 | Net Impact on income due to upfront booking of spread on the assigned portfolio (based on INDAS) (1+2-3) | -1.28 | -4.28 | 6.32 |
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 29th July 2020 took on record the unaudited Financial Results of the company for quarter ended 30th June, 2020.
As per IND-AS
MAS Rural Housing and Mortgage Finance Limited reports Assets under Management (AUM) of INR 284.16 Crore and profit after tax of INR 0.95 Crore for the quarter ended 30 June 2020 from INR 271.63 Crore and INR 1.12 Crore respectively for quarter ended 30 June 2019.
– A Growth of 4.61% in AUM and contraction of 14.79% in PAT over the corresponding period of the previous year. The covid provision stands at INR 2.10 crore.
Performance Highlights:
• The company is engaged predominantly in to affordable and rural housing financing. Moratorium was granted to all such borrowers. The collection in this segment for the month of June-20 and July-20 is 80% and 83% respectively by value.
• The portfolio quality improved despite of the ongoing crisis followed by the unprecedented situation at 0.26% net stage 3 assets of AUM as compared to 0.29% over the corresponding period of the previous year.
• Capital Adequacy Ratio (including Tier II capital) as of 30 June 2020 stood at 42.07%. The Tier-I capital stood at 33.26%.
| (INR in CR) | ||||
| Particulars | Q1’21 | Q1’20 | QoQ | FY’20 |
| Assets Under Management | 284.16 | 271.63 | 4.61%↑ | 286.54 |
| Total Income | 8.63 | 9.80 | 11.90%↓ | 39.88 |
| Profit Before Tax | 1.28 | 1.43 | 10.92%↓ | 4.25 |
| Profit After Tax | 0.95 | 1.12 | 14.79%↓ | 3.23 |
| Gross Stage 3 Assets % to AUM | 0.36% | 0.40% | 0.04 bps↓ | 0.34% |
| Net Stage 3 Assets % to AUM | 0.26% | 0.29% | 0.03 bps↓ | 0.25% |
For and on behalf of the Board of Directors
Kamlesh C. Gandhi
(Chairman & Managing Director)
(DIN – 00044852)