Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — Q4 FY24 Earnings Presentation
37 slides from Aptus Value Housing Finance India's earnings presentation, May 3, 2024
Slide 1: Exchange filing cover letter
Ref No: APTUS/05-MAY/2024-25 May 03, 2024 To, To, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai- 400001 Bandra (E) Scrip Code: 543335 Mumbai – 400 051 Scrip Symbol: APTUS Dear Sir/Madam, Sub: In
Slide 2: Investor Presentation | Q4 FY24
1 Aptus Value Housing Finance India Limited Investor Presentation | Q4 FY24
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”) which have been prepared by Aptus Value Housing Finance India Limited (the “Company”) have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscri
Slide 4: Background
Background Commenced Operations in 2010 Regulated by RBI and Stepping into 15th year of supervised by NHB operations Run by professional management Presence in 262 locations team backed by strong Founder (31 branches added in FY24, Promoter and marquee investors ventured into Maharashtra) 3
Slide 5: Key Strengths
Key Strengths Presence in Large Underpenetrated Market Leader in Attractive Good Asset South Market Quality Good Governance, Industry Leading Management and Profitability Alignment 4
Slide 6: Management Update
Management Update Geographic expansion: deeper Diversified Income stream from penetration in existing markets and HL and Non-HL contiguous expansion to newer markets Tech focused, Data driven fully Strengthening of Middle Management connected operations including in Business and Support functions ce
Slide 7: Journey Over The Years
Journey Over The Years 1 Lakh + AUM Rs. Crores Customers 50K + Customers CAGR Listed 8,722 (#) 31% Equity From Marquee Investors Expansion to Four States 6,738 6 YEARS 100th AUM Branch 1st PE 5,180 Rs.100 Cr Equity 4,086 Profitable 3,183 Incorporated 2,247 1,414 846 358 519 86 159 252 0 29 FY10 FY11
Slide 8: Strong Growth Runway; RoE to remain best in class
Strong Growth Runway; RoE to remain best in class Rs in Crores FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 CAGR # No. of Branches 143 175 190 208 231 262 No. of Customers 30,749 43,987 58,069 83,565 1,07,146 1,33,499 Disbursements 1,089 1,271 1,298 1,641 2,395 3,127 Loan Book * 2,247 3,179 4,068 5,180 6,738
Slide 9: Snapshot: March 2024
Snapshot: March 2024 YoY QoQ Assets under Disbursement Gross Stage 3 NIM Management (AUM) INR 8,722 Cr INR 3,127 Cr 1.07% 13.45% +29% +8% +31% +26% - 08 - 12 Consistently bps bps maintained Opex to Assets Profit After Tax Return on Assets Return on Equity 2.70% INR 612 Cr 8.00% 17.25% -05 +03 Consis
Slide 10: Diversified Income Stream With Niche Customer Focus
Diversified Income Stream With Niche Customer Focus Secured Portfolio – Home Loans (HL) / Small Business Loans (SBL) 4% 4% Home Loans Home Loans 2% 20% Quasi Home Loans Quasi Home Small 2% 23% Insurance Loans Loans Business Insurance Loans Loans & Top up Loans Non-HLs 60% 16% 69% Small Business Top
Slide 11: Leading to Desired Business Outcomes
100% In-House Operations …Leading to Desired Business Outcomes Business 1,641 Origination 01 02 Pricing Reduced 252 Power TAT Credit 273 Legal & Fully In-House Team.. technical 03 04 543 Collection Low Takeover Reduced Operational Risk 209 HO / Operations 10
Slide 12: Omni Channel Lead Generation
Omni Channel Lead Generation Customer App Bandhu App • Existing customers • Unifying construction can refer leads 7.58 % 6.22% ECO System through customer • Referral App to service APP generate leads Existing Customer Referrals Construction ecosystem Lead Generation Digital Marketing Sales App • Lea
Slide 13: Scalability
Scalability Branch-wise AUM as on Growth Potential in States March 31, 2024 AUM per Branch (Rs. Cr) # of Branches Tamil Nadu Andhra Telangana Karnataka Pradesh 34 47 181 GDP Growth India average: 6.1% 13% 9% 8% 7% 41.63 % of AUM as on No. of State Branches FY 24 FY 23 FY 22 FY 21 FY 20 22.03 Andhra
Slide 14: Robust Underwriting, Monitoring & Collections Process
Robust Underwriting, Monitoring & Collections Process 100% In-House Sourcing Leveraging Technology Lead Generation through Digital Onboarding and KYC • Cust app, Bandhu app • Social media Credit verification app, property app • 262 Branches and legal app Optimal leveraging of technology leading to 0
Slide 15: Information & Technology: Key Enabler of Growth
Information & Technology: Key Enabler of Growth Lending Software Customer Relationship Human Resources & Service End-to-end software solution Automated CRM and customer Human resources management service requests system application Customer Onboarding Collections App Business Intelligence & Analytic
Slide 16: Scalable and Robust Digital Landscape
Scalable and Robust Digital Landscape Mobility Data Analytics • Mobile App for customer on-boarding, Credit • Time Series Forecast Using Statistical Model and Verification, Technical Valuation, Collections & Tensor Flow for Bounce Prediction. Customer Service • Machine Learning Models for Analysis a
Slide 17: Risk & Data Science Backed Centralized Underwriting
Risk & Data Science Backed Centralized Underwriting Risk Tech - Centralized Management Intervention Processing Loans approved within 72 hrs • Tech enabled • Consistency in > 90 % • 50 + key data points evaluation of customers underwriting with are collected for with 100+ data points expertise in sta
Slide 18: Strong ESG /Governance
Strong ESG /Governance Focus on financial Improving Living Strong Corporate Paperless inclusion Standards Governance Initiative 79 Employment Diversified Experience Digital Transformations % in Rural / Semi-Urban of Board Members across areas, where local talents academic and professional • KYC to e
Slide 19: Performance Highlights (Quarterly)
Performance Highlights (Quarterly) Disbursement (Rs. Cr) AUM (Rs. Cr) Gross NPA (%) 45% 8722 968 1.19% 8072 1.15% 1.07% 768 668 6738 Q4 FY 23 Q3 FY 24 Q4 FY 24 Q4 FY 23 Q3 FY 24 Q4 FY 24 Q4 FY 23 Q3 FY 24 Q4 FY 24 PAT (Rs. Cr) ROA (%) ROE (%) 157 164 8.44% 17.10% 17.25% 8.06% 8.00% 16.34% 135 Q4 FY
Slide 20: Performance Highlights (Year on Year)
Performance Highlights (Year on Year) Growth YoY Disbursement (Rs. Cr) 31% AUM (Rs. Cr) 29% Gross NPA (%) -0.08% 8,722 1.15% 3,127 6,738 2,395 1.07% FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 PAT (Rs. Cr) 21% 22% ROA (%) ROE (%) +0.91% 8.44% 17.25% 612 8.00% 16.34% 503 FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 1
Slide 21: Consistent Spreads
Consistent Spreads Yields / Cost of Borrowings (%) Yield Cost of Borrowings 17.20% 17.03% 16.89% 17.00% 17.28% 17.00% 17.15% 17.20% 17.21% 17.35% 9.80% 8.43% 7.74% 8.10% 8.55% 8.10% 8.30% 8.41% 8.55% 8.64% FY 20 FY 21 FY 22 FY 23 FY 24 Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Spread (%) 8.60% 9.
Slide 22: Opex and ROA
Opex and ROA Opex (%) 3.40% 2.75% 2.71% 2.67% 2.70% 2.55% 2.78% 2.75% 2.70% 2.53% FY 20 FY 21 FY 22 FY 23 FY 24 Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 ROA (%) 8.44% 8.00% 8.00% 8.44% 7.37% 8.21% 8.06% 8.06% 7.01% 8.00% FY 20 FY 21 FY 22 FY 23 FY 24 Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24
Slide 23: Asset Quality
Asset Quality Gross NPA (%) PCR 99% Net NPA (%) 1.29% 0.97% 1.15% 1.19% 1.19% 0.89% 0.89% 1.07% 0.86% 0.80% Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Collection efficiency (%) E-NACH/Digital >98% 30 + DPD (%) Collections 102.90% 99.52% 99.72% 99.65% 10
Slide 24: Provision for Expected Credit Loss (ECL)
Provision for Expected Credit Loss (ECL) Rs in Lakhs Consolidated 31-Mar-24 30-Sep-23 31-Mar-23 31-Mar-22 Gross Stage 3 9,330 9,061 7,767 6,184 % portfolio in Stage 3 1.07% 1.19% 1.15% 1.19% ECL Provision Stage 3 2,333 2,265 1,942 1,546 Net Stage 3 6,998 6,796 5,825 4,638 Provision coverage ratio (P
Slide 25: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix 20+ Lender Relationships Sources of funds mix(%) 8% No Exposure to Short term loan incl CPs 5% DFI 24% 63% Refinance Banks NHB NCDs Others* Private Sector Avg. Tenure of FY 24 FY23 FY22 Borrowings (months) 80.1 86.9 84
Slide 26: ALM Surplus
ALM Surplus Position as on 31 Mar 2024 (Rs.Cr) Surplus <3 Months 439 621 1,060 3-6 Months 459 247 706 6m -1 Year 856 434 1,290 1-3 Years 3,088 3,952 864 3-5 Years 1,756 3,499 1743 5-7 Years 716 3,011 2295 7-10 Years 784 2,921 2137 >10years 81 428 347 Outflows Inflows 25
Slide 27: Fixed Vs Floating (Assets Vs. Liabilities)
Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (₹ Cr) Borrowings – Fixed Vs. Floating As on Mar-24 Fixed Floating 8,722 8,722 20.27% 26.14% 58% 59% 58% 58% 57% 30.69% 54% 52% 79.73% 42% 43% 42% 42% 48% 41% 46% 43.17% Loan Assets Borrowing/Equity Equity Fixed Floating Sep-22 Dec-
Slide 28: Comfortable Liquidity Position/ Capital Adequacy
Comfortable Liquidity Position/ Capital Adequacy A. Liquidity Rs in Crores Particulars 31-Mar-24 Unecumbered Cash & Cash equivalents 402 Unavailed Sanctions from Banks / NHB 620 Total 1022 Particulars FY 25 Q1 FY 25 Q2 Opening Liquidity 1022 1,313 * Rs.1,566 Crores Add: Principal repayments & Surplu
Slide 29: Key Growth Strategies
Key Growth Strategies Continued Focus on Deeper Penetration in Continued focus on Existing Segment & Existing Markets & Expand in productivity & Credit strengthen focus on SME new markets Cost • Ticket Size in INR 0.5 – 1.5mn • Increasing penetration and • Focus on Productivity, Credit range in HL a
Slide 30: Experienced and Well Diversified Board
Experienced and Well Diversified Board Non-Executive Chairman Managing Sumir KP Director M. Anandan Chadha Nominee Balaraj Directors Executive Nominee Nominee Chairman Director - Director - WestBridge WestBridge Non-Executive Independent K. M. S. Krishnamurthy Mohandass Krishnamurthy Directors Forme
Slide 31: Stable Management
Stable Management P. Balaji Several years of experience in financial Services Managing Director including HFC C.T. Manoharan John Vijayan Chief Business Officer Chief Financial Officer Rich experience in housing finance Experience in Financial Services in the industry across sales, channel and areas
Slide 32: Diversified Shareholding
Diversified Shareholding Shareholding Pattern Top Institutional Shareholders - Key Investors Investor Details % of holding 7.28% Malabar 6.68 5.12% 23.97% Founder Promoter Capital Research 4.79 -M Anandan SBI MF 3.90 Investor Promoter – WestBridge Steadview 3.18 26.51% Fll Ward Ferry 3.08 Dll Aberde
Slide 33: Annexures
Annexures 32
Slide 34: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs in Crores FY 24 FY 23 FY 24 FY 23 Growth % Particulars Q4 Q4 Full Year Full Year (Y-o-Y) Interest Income 360 291 1,320 1,058 25% Fee and Other Income 31 20 97 75 Interest Expenses (109) (78) (388) (276) NIM 283 233 1,029 858 20% Operating Expenses (58)
Slide 35: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs in Crores Particulars Mar-24 Mar-23 Source of Funds Share capital 100 100 Reserves &surplus 3,668 3,240 Net worth 3,768 3,339 Borrowings 5,200 3,786 Other Liabilities &Provisions 37 51 Total Source of Funds 9,004 7,176 Application of Funds Loan
Slide 36: RoA Tree (based on Avg Loan Book)
RoA Tree (based on Avg Loan Book) FY 24 FY 23 Particulars Full Year Full Year Revenue from Operations 17.79% 17.91% Other Income 0.73% 0.60% Total Revenue 18.52% 18.51% Interest Expenses (5.07%) (4.63%) NIM 13.45% 13.88% ECL Provisions / Write-Off's (0.38%) (0.57%) Operating Expenses (2.70%) (2.75%)
Slide 37: THANK YOU
THANK YOU 8B, Doshi Towers, 205, Poonamallee High Rd, Kilpauk, Chennai – 600010., Phone: 044-45650000, E-Mail: investorrelations@aptusindia.com, Website: www.aptusindia.com Investor Presentation | Q1 FY24
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