MAS Financial Services Limited (MASFIN) has reported a robust 20.43% year-on-year growth in Assets Under Management (AUM) for Q1, reaching INR 12,505.00 crore. The company also successfully raised INR 200.00 crore through the allotment of non-convertible debentures (NCDs), demonstrating its strong position in the market.

Financial Performance Highlights

• Total income grew by 28% to INR 444.00 crore
• Profit after tax increased by 19% to INR 84.00 crore
• Maintained a healthy asset quality with Gross Stage 3 Assets at 2.49% and Net Stage 3 Assets at 1.63%

Business Segment Performance

MASFIN's core MSME segment, comprising microenterprise loans (MEL) and SME loans, continued to be the primary growth driver:

NCD Issuance Details

MASFIN successfully raised INR 200.00 crore through the allotment of 20,000 non-convertible debentures:

• Face value: INR 1,00,000 per debenture
• Interest rate: 9.75% per annum, payable annually
• Tenure: 1 year, 10 months, and 16 days (maturing on June 15, 2027)
• Security: First ranking charge over the company's book debts and loan receivables
• Rating: 'CARE AA-; Stable' by CARE Ratings Limited

Management Commentary

Kamlesh Gandhi, Chairman and Managing Director, commented on the company's performance: "We are well-positioned for growth, with a strong foundation built over 30 years. Our focus remains on maintaining asset quality and profitability while expanding our retail infrastructure."

Future Outlook

• The company aims to increase its retail distribution to 70-75% of total business over the next 6-12 quarters
• MASFIN expects to maintain Net Interest Margins between 7-8% and Return on Assets between 2.75-3%
• The management anticipates a reduction in borrowing costs by 25-35 basis points during the year
• The company plans to expand its branch network, focusing on deeper penetration in existing geographies

MAS Financial Services continues to demonstrate resilience and consistent growth, leveraging its strong market position in the MSME lending segment. With a robust capital position and diversified funding sources, the company is well-equipped to capitalize on future growth opportunities in the financial services sector.

MAS Financial Services Limited (MAS) has reported strong financial results for the first quarter, with significant growth in Assets Under Management (AUM) and profitability. The company, which recently celebrated its 30th anniversary, continues to demonstrate resilience and consistency in its operations.

Key Financial Highlights

• Consolidated AUM grew by approximately 21% year-on-year to ₹12,505.00 crores, up from ₹10,384.00 crores in the previous year.
• Total income increased by 28% to ₹444.00 crores, compared to ₹347.00 crores in the same quarter last year.
• Profit after tax rose by 19% to ₹84.00 crores, up from ₹70.00 crores in the corresponding period.
• The company maintained a healthy asset quality with Net Stage 3 Assets at 1.63% and Gross Stage 3 Assets at 2.49%.

Business Segment Performance

MAS Financial Services continues to focus on its core MSME segment, which constitutes 75% of its assets. The remaining 25% comes from the Wheels and Personal Loan businesses. The company operates through 206 branches across more than 14,500 pin codes, with 65-66% of business through retail distribution and the rest through NBFC partnerships.

Profitability and Efficiency

The company maintained its Return on Assets (ROA) at 2.84% and Return on Equity (ROE) at 14% on an expanded capital base. MAS Financial Services' housing finance subsidiary also performed well, reaching an AUM of ₹794.00 crores with 27% growth.

Management Commentary

Kamlesh Gandhi, Chairman and Managing Director of MAS Financial Services, expressed optimism about the company's future growth prospects. He stated, "It took us around 30 years for this ₹13,000 crores. Next ₹13,000 crores should come within the next 3 years. In terms of Net Worth, we are close to ₹2,700 crores. Next ₹2,700 crores would come within the next 5 years or 6 years."

Outlook and Strategy

The management maintains its growth guidance of 20-25% and anticipates a 25-35 basis points reduction in borrowing costs during the year. The company plans to expand its retail infrastructure further, aiming to increase the share of retail distribution to 70-75% over the next 6 to 12 quarters.

MAS Financial Services continues to prioritize asset quality and profitability while adapting to market conditions. The company remains well-capitalized and funded, with a strong focus on technology-driven efficiency improvements in its operations.

As the economic environment shows signs of stabilization, MAS Financial Services is positioned to capitalize on growth opportunities in its core MSME segment and other business lines, maintaining its track record of consistent performance and prudent financial management.