Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — Investor Presentation
39 slides from Aavas Financiers's investor presentation
Slide 1: Corporate Presentation – FY25
AAVAS FINANCIERS LTD Corporate Presentation – FY25 INTERNAL
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aavas Financiers Ltd. (the “Company”), without any specific objectives and solely for information purposes and do not constitute directly or indirectly any advertisement, advise, offer, recomm
Slide 3: Aavas 3.0: Building a lasting institution
Aavas 3.0: Building a lasting institution Aavas 1.0 Aavas 2.0 Aavas 3.0 2012 2016 2023 AUM (₹ Bn) Investment (2016) by: IPO (October 2018) 173.1 204.2 94.5 113.5 141.7 40.7 59.4 78.0 0.0 1.8 4.1 8.4 16.8 26.9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY30E # of 25 35 42 4
Slide 4: Scaled & Resilient Organization Built On Strong Pillars
Scaled & Resilient Organization Built On Strong Pillars People, Processes & Technology Built For Scale Risk Financial Capital Human Capital Technology Supported By Strong Strong Equity Capital Base & Organization Structure Built For Capabilities of “Bank by Technology And Data Analytics Returns prof
Slide 5: Executive Summary – FY25
Executive Summary – FY25 Financial Capital Assets Customers Distribution Performance Structure ₹ 204.2 bn 99.5% ₹ 5,743 mn 397 ₹ 43.61 bn AUM Retail Loans PAT Branches Net Worth ₹ 61.2 bn 68% | 32% 3.27% | 14.12% 14 45.38% | 44.50% Disbursement HL | NHL ROA | ROE States/UTs Tier1 | CRAR ₹ 61.98 bn |
Slide 6: Business Overview
Business Overview Healthy Business Growth Business & Portfolio Mix Diverse Geographical Distribution Diverse Customer Mix Lead Generation In- House Execution Model IT Transformation INTERNAL 6
Slide 7: Healthy Business Growth
Healthy Business Growth AUM (₹ Bn) Disbursements (₹ Bn) 204.2 173.1 61.2 55.8 141.7 50.2 113.5 94.5 36.0 78.0 26.7 29.3 26.6 59.4 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 FY19 FY20 FY21 FY22 FY23 FY24 FY25 NIM (₹ Mn) PAT* (₹ Mn) 13,426 5,743 11,844 4,908 10,120 4,283 3,575 8,223 2,903 5,421
Slide 8: Diversified Portfolio Mix (FY25)
Diversified Portfolio Mix (FY25) AuM by Product AuM by Occupation ₹ 0.84 mn ₹ 0.96 mn 19% 40% ₹ 0.74 mn 13% ₹ 0.98 mn ₹ 1.07 mn 60% 68% Average ticket size HL LAP MSME Salaried Self Employed AuM by State AuM by Ticket-size (No of Active Loans) Karnataka, 3% 1% Others, 4% Harayana, 5% 5% 10% <1.5 Mn
Slide 9: Product Portfolio
Product Portfolio Share in Average Ticket Product Yield Segments Products Average LTV AuM Size (Rs. In Mn) Range Home Loan Self construction Home Improvement Housing 68% ₹ 1.07 mn 11%-15% 59% Plot + Construction Home Loan Balance Transfer Cash Salaried Plus MSME Business Loan 19% ₹ 0.84 mn 13%-16% 4
Slide 10: Well diversified geographical distribution
Well diversified geographical distribution FY25 Operations Branches added in State Commenced in FY25 Rajasthan 2012 1 Maharashtra 2012 2 Himachal Pradesh Punjab 5 4 Gujarat 2012 1 Uttarakhand Haryana 9 Madhya Pradesh 2013 4 20 Delhi 5 Rajasthan Uttar Pradesh Delhi 2013 - 39 109 Haryana & Punjab 2017
Slide 11: Our Customers
Our Customers Self Employed Salaried Home Loan MSME LAP Home Loan Customer -1: Customer -2 Customer -3 Customer -4: Age- 42| Town: Kotputli Age-35|Town:Nagpur Age-34|Town: Bagewadi Age – 32|Town: Bar wani (Rajasthan) (Maharashtra) (Karnataka) (MP) • Applicant runs an 8 room Guest • Applicant has bee
Slide 12: Ecosystem of Sourcing channel
Ecosystem of Sourcing channel E-Mitra: Direct: Omnichannel Sourcing Strategy: FY25 Citizen’s app run by Rajasthan Open market, cold calling, Govt. canopy activity, etc. 5% 6% Mitra: People in allied1 Aavas Ambassdar: 19% 70% industries Customer referral In-house program 4% 66% Sampark: Channel Partn
Slide 13: In-house Execution Model
In-house Execution Model In-house execution model – Replicated across the states 1. Reduction in average login to sanction TAT (days) Lead generation and Risk management Collections sourcing Turn around time is a key metric for customer centricity ▪ With our new Lead ▪ In-house underwriting team for
Slide 14: State-of-the art technology implementation enabling digital & analytical capabilities
State-of-the art technology implementation enabling digital & analytical capabilities LOS LMS Enterprise GL A New digital loan origination Adopting a next-gen cloud ERP system platform (LOS) and customer service Adopting a new loan management for back-office process automations to system to enable b
Slide 15: Major Technology Transformation Completed
Major Technology Transformation Completed Loan Management System Origination and CRM ERP / GL System CRM ERP / GL System ✓ Reimagined customer journeys ✓ Migrated to core banking based LMS ✓ Adopted worldclass Enterprise GL ✓ Omni-channel customer service platform Application enabled ✓ Consolidation
Slide 16: Financial Performance
Financial Performance Yields, Margins and Spreads Cost Efficiency and Return Ratios Asset Quality Liability Franchise Key Ratios INTERNAL 16
Slide 17: Yield, Spread, Margin and Cost Efficiency
Yield, Spread, Margin and Cost Efficiency Yield and Cost of Borrowings (%) OPEX to Total Assets (%) Yield% CoB% 3.8% 13.8% 13.6% 3.7% 13.2% 12.7% 13.1% 13.1% 13.1% 3.6% 3.4% 3.5% 3.3% 3.0% 8.7% 8.4% 8.2% 7.6% 8.1% 7.4% 6.9% FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Spread
Slide 18: Pristine Asset Quality
Pristine Asset Quality Gross NPA / Stage 3 (%) Net NPA / Stage 3 (%) 1.08% 0.98% 0.99% 0.92% 0.94% 0.84% 0.71% 0.68% 0.67% 0.73% 0.47% 0.46% 0.37% 0.34% FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY19 FY20 FY21 FY22 FY23 FY24 FY25 1+DPD (%) Credit Cost (%) 0.45% 6.37% 4.47% 0.23% 0.23% 3.43% 3.30% 3.39% 0.1
Slide 19: Strong Liability Base
Strong Liability Base Diversified Funding Mix Particulars Period Up to FY16 Up to FY25 Difference Total Share Capital (₹ Mn) Cumulative 151 1,444 1,293 9.5% Terms Loans Retained Earnings and Diversified Mix: 14.4% Profit (₹ Mn) Cumulative 52 2,917 2,865 34 Lenders Assignment & Co-lending Mar-25 50.9
Slide 20: Steady Credit Ratings Upgrades over the Years
Steady Credit Ratings Upgrades over the Years CARE Mar-25 AA / Stable Mar-17 A+ /Stable AA AA AA- ICRA Mar-25 AA / Stable A+ A Mar-16 A / Stable A- Short-term A1+ rating BBB- reaffirmed by ICRA, CARE, & India Ratings FY13 FY14 FY16 FY17 FY20 FY23 FY25 INTERNAL 20
Slide 21: Positive ALM across Buckects
Positive ALM across Buckects ALM position Surplus Management As on Mar – 25 AUM & Borrowings (₹ Mn) (As on Mar-25) (₹ mn) 16,282 18,998 18,723 20,258 18,956 31,048 44,744 Assets 1,86,313 142,441 145,347 1,64,490 Liabilities 1,33,554 1,33,443 1,41,569 Surplus 1,14,598 93,599 73,341 34,124 61,761 30%
Slide 22: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Mar-25 Cash & Cash Equivalents 15,320 High-Quality Liquidity of Un-availed CC Limits 1,200 ₹ 16,520 Mn Documented & Un-availed Sanctions from NHB - Documented & Un-availed Sanctions from other Banks 13,470 Total Liquidity Position 29,990 Partic
Slide 23: Key Financial Ratios
Key Financial Ratios Return on Assets – ROA (%) Return on Equity – ROE (%) 14.1% 13.9% 14.1% 13.7% 3.6% 3.8% 3.6% 12.9% 3.5% 3.5% 12.7% 3.3% 3.3% 11.6% FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY19 FY20 FY21 FY22 FY23 FY24 FY25 BVPS & EPS Trend Capital Adequacy Ratio 1,000 BVPS (₹) EPS (₹) 72 80 62 70 67.
Slide 24: Financial Statements
Financial Statements Financial Snapshot RoA Tree Balance Sheet PAT Reconciliation Net worth Reconciliation ECL Provisioning INTERNAL 24
Slide 25: Financial Snapshot
Financial Snapshot Particulars (₹ Bn) FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR (6Y) AUM 59.4 78.0 94.5 113.5 141.7 173.1 204.2 23% Disbursement 26.7 29.3 26.6 36.0 50.2 55.8 61.2 15% Total Assets 56.3 76.6 89.6 110.2 134.1 165.2 186.2 22% Borrowings 36.5 53.5 63.5 79.7 98.4 123.4 139.2 25% Net Worth
Slide 26: ROA Tree
ROA Tree Particulars FY19 FY20 FY21 FY22 FY23 FY24 FY25 Interest income 13.1% 12.8% 12.6% 12.1% 12.3% 12.5% 12.4% Less: Interest Expense (incl. Finance Charges) (5.4%) (5.4%) (5.6%) (4.8%) (4.9%) (5.6%) (5.8%) Net Interest Income (NII) 7.7% 7.4% 7.0% 7.3% 7.4% 6.9% 6.6% Add: Fees and Other income 0.
Slide 27: Balance Sheet
Balance Sheet Particulars (₹ in mn) FY19 FY20 FY21 FY22 FY23 FY24 FY25 Sources of Funds Share Capital 781 783 785 789 791 791 792 Reserves & Surplus 17,589 20,196 23,229 27,297 31,906 36,942 42,817 Borrowings 36,533 53,520 63,454 79,725 98,407 1,23,365 1,39,185 Deferred Tax Liability (Net) 427 317 2
Slide 28: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) FY19 FY20 FY21 FY22 FY23 FY24 FY25 Net Profit as per IGAAP 1,473.1 2,297.4 3,077.8 3,282.3 3,793.1 4,435.1 5,291.0 Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financi
Slide 29: Net Worth Reconciliation
Net Worth Reconciliation Particulars (₹ Mn ) FY19 FY20 FY21 FY22 FY23 FY24 FY25 Net Worth as per previous GAAP 17,086.4 19,370.5 22,470.8 26,133.3 30,177.4 34,650.84 39,927.10 Adjustments increasing/(decreasing) net worth as reported under previous GAAP: Adoption of EIR for amortisation of Income an
Slide 30: ECL Provisions
ECL Provisions Particulars (₹ Mn ) FY19 FY20 FY21 FY22 FY23 FY24 FY25 Gross Stage 3 GNPA 223 284 739 904 1,067 1,319 1,763 % portfolio in Stage 3 (GNPA%) 0.47% 0.46% 0.98% 0.99% 0.92% 0.94% 1.08% ECL Provision Stage 3 49 74 201 208 287 380 572 Net Stage 3 174 210 538 695 780 939 1,191 Provision Cove
Slide 31: Experienced Board of Directors, ESG, Diversified Shareholding Base
Experienced Board of Directors Professional Management Team Diversified Shareholding Base ESG Industry INTERNAL 31
Slide 32: Experienced Board has guided Aavas's journey since inception
Experienced Board has guided Aavas's journey since inception Sandeep Tandon Soumya Rajan Kalpana Kaushik Mazumdar Chairperson of Board, Independent Independent Director & Chairperson of Independent Director & Chairperson Director & Chairperson of Stakeholders Nomination & Remuneration Committee of A
Slide 33: Strong Management depth continues to drive Aavas's Outperformance
Strong Management depth continues to drive Aavas's Outperformance Sachinder Bhinder Ghanshyam Rawat Ashutosh Atre Managing Director & CEO President & Chief Financial Officer President & Chief Risk Officer • 27+ years of experience • 30+ years of experience in financial • 30+ years of experience in c
Slide 34: Strong middle layer across core business functions
Strong middle layer across core business functions Business Origination Credit & Risk Collections 104 85 24 Strong middle 8 24 72 5 32 48 6 13 5 layer National Zonal Regional National Zonal Regional National Zonal Regional management 37% employees with 3+ 76% employees with 3+ 100% employees with 3+
Slide 35: Diversified Shareholding base
Diversified Shareholding base Shareholding Pattern as on Top Institutional Shareholders as on 31st Mar 2025 31st Mar 2025 Investor Details % Holding CVC Capital# 22.50 Kedaara Capital^ 16.02 Others, 8.9% Partners Group^ 10.87 CVC Capital, Stewart Investors^ 6.38 22.5% UTI Asset Management^* 3.27 Nip
Slide 36: Environmental, Social & Governance
Environmental, Social & Governance Pillars for Sustainable Future ESG Journey Nurturing Responsible Green Planet Workplace Lending Empowered Secure Robust Community Customer Governance Ratings Rating Agencies Rating- Mar’25 CRISIL 63 – Strong ESG RISK ASSESSMENT 70.62 – Strong MORNINGSTAR* (Sustaina
Slide 37: Pioneer in Self-Built Green Housing
Pioneer in Self-Built Green Housing ▪ In 2021, IFC conducted a survey of 500 Aavas homes to understand the willingness and perceptions towards green homes, leading to affordable green home financing solutions – designed and implemented by Aavas. ▪ Aavas has successfully raised Non-Convertible Debent
Slide 38: Affordable Housing is a Secular Growth Story Backed by Long Term Structural Tailwinds
Affordable Housing is a Secular Growth Story Backed by Long Term Structural Tailwinds Backed by Long-term structural tailwinds Trend in Mortgage to GDP in India Large headroom - one of the lowest mortgage penetrations globally… 16.0% 15.3% Mortgage Penetration as a % of GDP UK 68% 12.3% USA 52% 10.8
Slide 39: Thank You !
Contact Us For further information, please contact : Aavas Financiers Limited CIN: L65922RJ2011PLC034297 (www.aavas.in) Mr. Rakesh Shinde, Head of Investor Relations Thank You ! Rakesh.shinde@aavas.in Investor Relations – Aavas Financiers investorrelations@aavas.in INTERNAL