The stories use a holistic template, and are intended to give you a quick understanding of the business in 10 mins. Forex order book mt4 g3 Bank of India and listed on the Bombay Stock Exchange. 2 wheeler and 3 wheeler loans.
Not much active cross-selling at the moment because of absence of unified database. Muthoot Fincorp branches in Kerala are pretty much all leveraged by MCS. Fincorp has 900 branches in TN and around 600-700 branches in AP and KN each which leaves lot of space for leveraging on. These 3 states are traditionally huge markets for 2Wh financing.
There is huge headroom to grow -provided the funding constraints get adequately addressed. 9mFY14 are the highest in the industry, although on a much lower base compared to bigger competitors. Even with a declining profitability trend over last few years, MCS RoA at 3. With the steps Management has been taking, RoA looks set to improve in near to medium term.
All auto-financiers including Bajaj Finance have been seeing a spurt in NPAs in recent quarters. MCS has been managing the NPA situtation admirably. MCS is again probably unique in its focus of trying to ensure recovery of every rupee that is written off. Cases are filed and in due course company is confident of recovering loan amounts due along with legal costs and charges. With enterprise-wide automation being introduced and Profit Center benchmarks being established, company is embarking on a productivity linked budgeting exercise from FY15 onwards. Fincorp has a customer base exceeding 3. FY15 and may provide a kicker to Sales growth.
FY14 PAT is likely to register flattish or negative growth. 3 to 5-fold drop in Sales and Profitability per employee. The situation has got accentuated on 2 fronts. First, disbursements didn’t keep pace with recruitment leading to under-utilisation. Disbursements have been hampered by delayed funding availability from Banks. Typically Bank Limits are enhanced based on the current Balance Sheet. May with Banks taking another 2 months.