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This Article is From Apr 06, 2021

NBFCs Q4 Earnings Preview - Recovery Gathers Momentum: Motilal Oswal

NBFCs Q4 Earnings Preview - Recovery Gathers Momentum: Motilal Oswal 

NBFCs Q4 Earnings Preview - Recovery Gathers Momentum: Motilal Oswal
A customer counts Indian rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Macro recovery, coupled with a stable liquidity scenario, is leading to a strong recovery in growth and collection efficiency.

Across product segments, disbursements for Q4 FY21 are likely to be at pre-Covid-19 levels.

Across product segments, there continues to be a month-on-month improvement in collection efficiency.

Companies are also witnessing movement to the lower days past due segment from the higher DPD segment, leading to a lower provisioning requirement.

We continue to build in higher provision coverage ratio/write-offs to clean the books.

We expect credit cost to revert to normal levels over the next one to two quarters.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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