MAS Financial Services Limited — Investor Meet, 04-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** MAS Financial Services reported significant growth in the third quarter. Consolidated Assets Under Management (AUM) rose by 21.17% to ₹12,379 Cr, while Profit After Tax (PAT) increased by 25% to ₹80.40 Cr. Standalone figures show AUM growth of 21% at ₹11,667 Cr, with total income rising by 21% to ₹390 Cr. PAT for the standalone entity also saw a 25% rise, reaching ₹78 Cr. The company maintained a Gross Stage-3 asset ratio of 2.41% and a Net Stage-3 asset ratio of 1.62%, reflecting a commitment to asset quality.

**Future Outlook and Growth Drivers:** Management projects continued growth between 20% to 25% annually, driven by a focus on MSME financing, personal loans, and two-wheelers. The upcoming launch of a technology platform to enhance operational efficiencies is anticipated to support these targets. The housing finance subsidiary is expected to grow by 25-30%, further diversifying the revenue stream.

**Order Book and Operational Updates:** The company announced a 29% growth in housing finance AUM, reaching ₹701 Cr, with PAT increasing by 19% to ₹2.39 Cr. The company aims for a total AUM target of ₹20,000 Cr within three to four years.

**Analyst Q&A Insights:** Analysts inquired about product-specific stress levels, revealing that Micro Enterprise Loans are under the most pressure, with managing asset quality a priority. The company confirmed ongoing stability in borrowing costs and expectations for capital adequacy metrics to improve as growth continues. The cost of borrowing remained stable at 9.84%.

**Market or Regulatory Updates:** No significant regulatory changes were reported that would impact current strategies, although interest rates remain a critical external factor.

**Strategic Focus Areas:** Management is prioritizing risk management without compromising growth. They emphasized technology integration and prudent credit assessments to navigate the challenging macroeconomic landscape.

**Investor Insight:** Based on strong financial performance and a robust growth outlook, coupled with disciplined risk management practices, MAS Financial Services appears positioned for sustained positive growth. A ‘buy’ position aligns with the company’s strategic direction and committed asset quality focus.