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.

MAS Financial Services Limited , a leading MSME financing company, has announced robust financial results for the first quarter, demonstrating consistent growth and strong performance across key metrics.

Consolidated Performance Highlights

The company reported consolidated Assets Under Management (AUM) of ₹13,298.50 crores, marking a significant 20.82% year-over-year growth from ₹11,006.72 crores in the same quarter last year. Profit After Tax (PAT) saw a healthy increase of 19.34%, reaching ₹86.59 crores compared to ₹72.56 crores in the previous year's corresponding quarter.

Standalone Performance

On a standalone basis, MAS Financial Services achieved an AUM of ₹12,504.60 crores, up 20.43% from ₹10,383.59 crores in the previous year's quarter. The company's standalone PAT grew by 19.13% to ₹83.90 crores, compared to ₹70.43 crores in the corresponding quarter of the previous year.

Key Financial Metrics

• Total Income (standalone): ₹443.77 crores, up 27.95% YoY
• Profit Before Tax (standalone): ₹112.43 crores, an increase of 19.11% YoY
• Capital Adequacy Ratio: 25.22%, with Tier-I capital at 23.19%

Portfolio Quality and Asset Mix

The company maintained a stable and strong portfolio quality with gross stage 3 assets at 2.49% and net stage 3 assets at 1.63% of AUM. MAS Financial continues to carry a management overlay of ₹17.60 crores, representing 0.17% of on-book assets.

The MSME segment remained a key growth driver, contributing approximately 60% to the year-over-year AUM growth. The company's product mix showed strong performance across various segments:

Subsidiary Performance

MAS Rural Housing and Mortgage Finance Limited, a subsidiary of MAS Financial, reported an AUM of ₹793.90 crores, representing a 27.40% year-over-year growth. The subsidiary's PAT increased by 27.04% to ₹2.76 crores.

Management Commentary

Kamlesh Gandhi, Founder, Chairman & Managing Director of MAS Financial, commented on the results: "The performance of the company even during these trying times demonstrates our capability of navigating through tough cycles successfully, which has been proven many times during this long journey of 30 years. Going forward, we are confident in maintaining our fundamentally strong growth momentum backed by very strong enablers."

MAS Financial Services also announced that its subsidiary, MASFin Insurance Broking Private Limited, has received in-principle approval from IRDAI to operate as a Direct Insurance Broker (Life & General), subject to compliance with regulatory requirements.

The company's consistent performance over 121 quarters underscores its strong fundamentals and strategic focus on the MSME financing sector. With a robust capital position and diversified product portfolio, MAS Financial Services appears well-positioned for sustained growth in the coming quarters.