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MAS Financial Services Limited reported a standalone net profit of ₹34.20 crore for the quarter ended September 2020, lower by about 6.5 per cent against ₹36.59 crore in the previous quarter ended June 2020.
The company’s total revenues from operations stood at ₹153 crore against ₹160 crore in the previous quarter, which faced Covid-induced lockdown and economic disruptions.
MAS reported Assets under Management (AUMs) of ₹5,300.87 crore for the quarter ended September, 30, 2020, against AUM of ₹5,894.37 crore in the same quarter last year.
“A contraction of 10.07 per cent in AUM over the corresponding period of the previous year is due to adopting a cautious approach on disbursement while maintaining high collection efficiency,” company informed in a statement.
The contraction of 14.91 per cent in PAT over the corresponding period of the previous year was due to contraction in AUM and maintaining high level of liquidity due to the current market scenario,” it added.
Covid provision
The company made total special Covid provision as on September 30, 2020, at ₹52.11 crore for the total on-book assets of ₹3,083.32 crore, which is 1.69 per cent of the total on-book assets, with an additional special Covid provision of ₹1.23 crore during the quarter and ₹31.78 crore during the half year, it said.
The company’s profits for the first half of the fiscal – April-September period – stood at ₹70.80 crore, down 15.43 per cent over the corresponding period last year.
Kamlesh Gandhi, Founder, Chairman and Managing Director, MAS Financial, said: “In light of the current situation, the main focus of the company continues to remain on maintaining strong capital base, high level of liquidity, quality of assets, high provisioning buffers, and constant engagement with all the stakeholders for understanding the evolving situation.
“With a further improved Tier-1 capital adequacy ratio of 32.72 per cent and total capital adequacy of 35.58 per cent, sufficient liquidity due to very efficient liability management, stable quality of portfolio of around 1.16 per cent of net stage 3 assets, and by creating additional provisioning buffer, which stands at 1.69 per cent of on-book assets, should enable the company to navigate the current unprecedented situation successfully,” Patel added.
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