Capitaline

Analyst Meet / AGM 27-Aug-18

Conference Call

Mas Financial Services

Expects AUM to rise to Rs 5000-5250 crore and PBT to Rs 190-200 crore for FY2019

Mas Financial Services conducted a conference call on 24 August 2018 to discuss the financial results for the quarter June 2018. Kamlesh Gandhi, Chairman and Managing Director of the company addressed the call:
Highlights:

The company has maintained strong growth momentum posting 30% growth in the asset under management to Rs 4257.5 crore end June 2018.
The loan growth has been strong across all segment with micro enterprise loans (MEL) AUM rising 36% to Rs 2720.5 crore, SME loans 20% to Rs 1006.8 crore, 2-wheelers 21% to Rs 386 crore and commercial vehicle loans 18% to Rs 144.2 crore end June 2018 over June 2017.
The MEL and SME loans account for 87% of overall AUM of the company end June 2018, while the company expects to maintain the share of MEL and SME loans at 75-80% of AUM in the medium term.
The company has network of 78 branches spread across six states end June 2018.
The company has recorded strong 46% growth in net profit to Rs 33.6 crore in Q1FY2019.
The company expects its overall AUM to increase to Rs 5000-5250 crore by end March 2019 and post PBT of Rs 190-200 crore in FY2019.
The GNPA ratio was nearly flat at 1.19% end June 2018, while NNPA ratio has eased to 0.95% end June 2018 from 0.99% end June 2017.
The disbursements stood at Rs 996 crore in Q1FY2019.
About 59% of the business is sourced from channel partners. The average lending for channel partners stands at 13.5% and margins is 6.26%.
The housing and mortgage loan book of the subsidiary company increased 17% to Rs 209.6 crore, while GNPA improved to 0.33% and NNPA to 0.24% end June 2018. The company posted 29% growth in the net profit to Rs 0.9 crore in Q1FY2019.
The loan growth is marginally higher at 30.3% under Ind AS for end June 2018. Asset quality numbers have remained nearly flat after transitioning to Ind AS from IGAAP.
The portfolio assignment increased to 37% or Rs 1597 crore of AUM end June 2018. The portfolio assignment stood at Rs 360 crore in Q1FY2019.
The cost of borrowing stood at 8.47% end June 2018 compared with 8.27% end March 2018 and 8.98% end June 2017. The marginal cost of borrowings stood at 8.6% in Q1FY2019.
The segment wise yields on loans were micro-enterprise loans at 15.43%, SME at 15.46%, two Wheelers at 18.18% and commercial vehicle loans at 17.5%.
The company has targeted ROE of 17-18% for FY2019.

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