Aadhar Housing Finance Ltd · NSE:AADHARHFC
Aadhar Housing Finance — 9M FY25 Earnings Presentation
36 slides from Aadhar Housing Finance's earnings presentation, Feb 6, 2025
Slide 1: Stock exchange filing cover letter
Date: 6th February, 2025 To, To The General Manager, Sr. General Manager BSE Ltd. National Stock Exchange of India Limited P. J. Towers, Dalal Street, Exchange Plaza, C-1, Block G, Bandra Kurla Complex Mumbai- 400001 Bandra (E), Mumbai – 400 051 Scrip Code: 544176 Symbol: AADHARHFC Kind Attn.: Listi
Slide 2: Investor Presentation 9M FY25
Aadhar Housing Finance Limited Investor Presentation 9M FY25
Slide 3: Disclaimer
DISCLAIMER The information contained in this presentation is provided by Aadhar Housing Finance Limited (“Aadhar” or the “Company”), to you solely for your reference. Any reference herein to the “Group” shall mean Aadhar Housing Finance Limited, together with its subsidiaries / joint ventures/ affil
Slide 4: Company Snapshot
COMPANY SNAPSHOT 21
Slide 5: 9M FY25 Key Highlights
Aadhar Housing Finance – 9M FY25 Key Highlights AUM PAT GNPA ₹ 239,759 Mn ₹ 6,670 Mn 1.36% +21% +22% -4bps YoY Change NIM ROA 9.2% 4.3% +20bps +12bps 2
Slide 6: 9M FY25 Key Highlights
Aadhar Housing Finance – 9M FY25 Key Highlights Digitally-enabled HFC focused on low-income housing, with a seasoned business model Scale Granular book Asset quality Distribution Liability profile c.INR240bn 100% Secured 1.36% c.INR56bn AA / Stable4 AUM Retail book GNPA 9M Disbursements Long Term Cr
Slide 7: Financial Performance
FINANCIAL PERFORMANCE 51
Slide 8: Strong Growth in AUM and Disbursements
Strong Growth in AUM and Disbursements AUM – By Product (INR Mn) : 21% YoY Growth as on Dec 24 21% Growth 2,39,759 2,39,759 2,11,209 1,98,652 62,164 1,72,228 62,164 1,65,665 1,47,767 53,258 1,40,510 47,914 37,635 33,879 26,849 24,011 1,77,595 1,77,595 1,57,951 1,31,786 1,50,738 1,20,918 1,34,593 1,1
Slide 9: Stable Yields and Spreads
Stable Yields and Spreads Yields, Cost of Borrowings and Spreads (%) 1 13.9% 13.9% 14.0% 13.9% 14.0% 14.0% 13.9% 13.1% 13.4% 13.0% 8.0% 8.1% 8.0% 8.0% 8.1% 8.1% 7.7% 7.6% 7.8% 7.0% 6.0% 5.8% 5.9% 6.2% 5.9% 6.0% 5.8% 5.9% 5.8% 5.4% FY21 FY22 FY23 FY24 9M FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 P
Slide 10: Consistent Improvement in Asset Quality and Efficiency
Consistent Improvement in Asset Quality and Efficiency Asset Quality Metrics – GNPA Improved by 4bps in 9M FY25 on a YoY basis 1.8% 1.3% 1.0% 0.9% 1.8% 1.3% 1.0% 0.9% 2.2%* 2.2%* 1.8%* 1.8%* 1.4% 1.4% 1.4% 1.4% 9M FY22 9M FY23 9M FY24 9M FY25 Q3 FY22 Q3 FY23 Q3 FY24 Q3 FY25 GNPA to AUM NNPA to AUM C
Slide 11: Attractive Return Profile
Attractive Return Profile Profit after Tax Increased by 22% in 9M FY25 on YoY basis 30 36 42 61* 30 36 42 61* 22% Growth 6,670 5,479 2,393 2,043 4,041 1,587 3,296 1,187 9M FY22 9M FY23 9M FY24 9M FY25 Q3 FY22 Q3 FY23 Q3 FY24 Q3 FY25 PAT (INR Mn) Net Worth (INR Bn) Return on Assets Improved by 12bps
Slide 12: Business Overview
BUSINESS OVERVIEW 101
Slide 13: Business Model and Value Proposition
Aadhar Housing Finance – Business model and Value Proposition Focused on low-income housing segment1 Extensive branch and sales office network with geographical penetration across India Scalable technology platform, digital processes and customer journeys Diversified and granular portfolio Access to
Slide 14: Key Milestones and Assets Under Management
Key Milestones Branches 520+ Listed Customer base Customer base crossed 2,00,000 Assets Under Management (INR bn) crossed 1,50,000; Acquired by the 240 Merger of DHFL Blackstone Vysya Housing 211 Group1 in June Finance Limited 2019 with Pre-merger AHFPL 172 148 Pre-merger 133 AHFPL opened 114 Year o
Slide 15: Pan-India Presence
Pan-India Presence Distribution Network Branch Distribution Diversified presence with a focus on cost control Top 2 States by AUM Top 5 States by AUM Others UP 17% 13% By State (Dec 31, 2024) Other States with Presence States not present in KTK GJ 557 Branches1 5% 12% Uttar Pradesh Dec-24 70 Branche
Slide 16: Distribution Strategy
Distribution Strategy Agile branch network with each location catered to by an appropriate branch size, helping keep opex in control Deep Ultra Deep Impact Micro Impact Main Branches Branch Small Branches Micro Micro Branch AMs Branch Micro Branches Ultra Micro Small Main Small Ultra Micro Ultra-Mic
Slide 17: Comprehensive Credit Assessment Process
Comprehensive Credit Assessment Process Skilled In-house technical team has assisted in creating this Robust Credit Assessment Framework Credit Underwriting Centralized processing at regions – Salaried Customers Decentralized processing – other customers ▪ Regional processing units to process applic
Slide 18: Diversified Funding Sources
Diversified Funding Sources Distributed Funding Mix having Low Short-term Exposure Increasing focus on diversifying borrowings Continue to maintain share of NHB refinancing and rely on long term sources of borrowings Others NCD 1% NCD 21% 24% Mar-21 Dec-24 Banks 51% NHB Banks NHB 16% 62% 25% Increas
Slide 19: ALM Position
ALM Position Positive ALM Position Across Buckets Asset Liability Management – INR bn (as on Dec-24) 77% of Gross AUM and 79% of borrowings have floating interest rates 331.4 245.3 270.1 176.8 179.6 134.2 86.2 65.7 61.3 51.9 34.2 42.7 Upto 1 year Upto 3 years Upto 5 years Total Assets 1 Liabilities
Slide 20: Digital First Operating Model
Digital First Operating Model Digital First, Future-ready & Scalable Tech Platform deployed Digital Acquisition Digital Processing 1 2 25-35 mins 100% Door-to-Login Time Paper-less Onboarding End-to-End TCS-Enabled Core System Digital Collections Digital Servicing 4 3 97% 129,000+ NACH Conversion Cu
Slide 21: Scalable & Stable IT Platform
Scalable & Stable IT Platform Prospects Customers Aadhar Mitra Channel Partner Vendors Sales Users Collections Users Call Centre Users Aadhar Customer Fintech Sales On The Lead Verification Collections - Website / Service- Partner Go- Mobile CRM Service Generation Portal Mobile App Portal Mobile App
Slide 22: Extensive Suite of Applications
Extensive Suite of Applications Robust customer engagement and partner empowerment through mobility apps; Focus on consistently improving employee experience through virtual office Sales Mobility App Customer Service Collections App Employee Super App Faster onboarding of Integrated HR app for all A
Slide 23: Data Science Led Growth
Data Science Led Growth Leveraging in-house capabilities to improve credit underwriting capabilities and drive future growth Improving Increasing Amplifying Yields & Asset Quality Operational Efficiencies Mitigating BT-Out Credit Risk Underwriting Collections Analysis Risk Based Pricing Customer Ret
Slide 24: Social Objectives at the Core of the Business
Social Objectives at the Core of the Business Aadhar has adopted and implemented a social objective across all aspects of the business Home Aspirations Portfolio focused on EWS / LIG segments AUM focused on EWS / LIG Customers 68% 81% 80% 76% 71% 68% Gross AUM with EWS/LIG customers FY21 FY22 FY23 F
Slide 25: Highly Experienced Board of Directors
Highly Experienced Board of Directors Highly experience board; Promoted by Blackstone1, one of the World’s leading Global Investment Firm O.P. Bhatt, Non-Executive Chairman & Independent Director Deo Shankar Tripathi, WTD2 and Executive Vice Chairman ▪ Former Chairman of State Bank of India ▪ Previo
Slide 26: Seasoned Management Team
Seasoned Management Team Experienced, cycle-tested and professional management team with strong corporate governance Rajesh Viswanathan, Chief Financial Officer ▪ Several years of experience in accounting, finance, strategy, planning, taxation, treasury, and investor relations ▪ Previously worked wi
Slide 27: Financial Information
FINANCIAL INFORMATION 251
Slide 28: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars (INR Mn) Q3 FY25 Q3 FY24 YoY Q2 FY25 QoQ 9M FY25 9M FY24 YoY Interest on loans 6,854.5 5,528.2 6,430.8 19,318.1 15,794.0 Other Interest and Investment Income 325.5 330.6 351.4 1,043.9 1,088.5 Non-Interest Income 360.9 507.3 434.0 1,207.3 1,230.5 Net
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INRmn) December 31st, 2024 March 31st, 2024 Sources of Funds Share capital 4,307 3,948 Reserves and surplus 56,836 40,550 Borrowings 1,51,344 1,39,596 Trade payables & Other Liabilities 6,849 6,837 Total 2,19,335 1,90,931 Application of Funds Loan Assets 1,92,
Slide 30: Annexures
ANNEXURES 281
Slide 31: ECL Provisions
ECL Provisions Particulars (INR Mn) Dec 31st, 2024 March 31st, 2024 Dec 31st, 2023 Gross Stage 1 1,84,284 1,63,054 1,52,812 % portfolio in Stage 1 94.8% 95.3% 94.8% ECL Provision Stage 1 583 538 539 ECL Provision % Stage 1 0.3% 0.3% 0.4% Gross Stage 2 7,406 6,189 6,143 % portfolio in Stage 2 3.8% 3.
Slide 32: Industry Overview: Low Income Housing Finance
INDUSTRY OVERVIEW LOW INCOME HOUSING FINANCE 301
Slide 33: Affordable Housing Finance Market in India: Opportunity Size
Affordable Housing Finance Market in India: Opportunity Size • Urban areas are projected to host 40% of India's population by 2030 from current 36% leading to a rise in Affordable housing in urban areas • An expected shortage of affordable housing units is expected to be 32.3 Mn by 2030 which inclu
Slide 34: Key Growth Enablers
Key Growth Enablers Government Initiatives’ Changing Dynamics Market Penetration Opportunities Focus on Financial Inclusion Impact on Housing Finance • There's a growing emphasis on • Increased allotment for Housing Schemes: The • Urbanization: Migration to cities drives • Low Mortgage-to-GDP Ratio:
Slide 35: Glossary
Glossary Terminology Definition Terminology Definition ALM Asset Liability Management LIH Low Income Housing AM Aadhar Mitra LTV Loan to Value ATS Average Ticket Size NBFC Non-Banking Financial Company AUM Assets Under Company’s Management NCD Non-Convertible Debenture CAGR Compounded Annual Growth
Slide 36: Thank You
Aadhar Housing Finance Limited www.aadharhousing.com CIN: L66010KA1990PLC011409 For further information, please contact Sanjay Moolchandani – Head of FP&A Adfactors PR – Investor Relations Sanjay.Moolchandani@aadharhousing.com Snighter Albuquerque / Aashvi Shah Investor Relations – Aadhar Housing Fi
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