Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q3 FY23 Earnings Presentation
46 slides from Mas Financial Services's earnings presentation, Feb 1, 2023
Slide 1: Exchange filing cover letter for investor presentation
-{t{ AS I {\S FINANCIAL SERVICES LIMITED ^fl,tA>s FINANCIAL SERVICES LIMITED Tefusret Distribution of.Astrihution Powerof 'Ifrz February 01, 2023 MF SL/SEC/EQ/2023/09 MrsusEc/EoJ2023/o9 Februa ry 0L, 2023 To, To, To, General Manager To, TheMaManager, Stock Exchange of India Limited The naBer, Nation
Slide 2: Investor Presentation – Q3 FY23
9py THROUGH { 3 ENDEAVOURS AL SERVI Te Power ofDistribution INVESTOR PRESENTATION – Q3 FY23 LT1 2021-22
Slide 3: Disclaimer
Disclaimer 25° rosiobs This presentation has been prepared by and is the sole responsibility of MAS Financial Services Limited (together with its subsidiary MAS Rural Housing & Mortgage Finance Limited). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This
Slide 4: Table of Contents
Table of Contents 25° evweirs 1 MAS AT A GLANCE 04 2 GROWTH STORY 05 3 STRONG FUNDAMENTALS 08 4 WAY FORWARD 15 5 STANDALONE FINANCIAL REVIEW 17 6 SHAREHOLDING PROFILE 28 7 MAS RURAL HOUSING & MORTGAGE FINANCE LIMITED - SUBSIDIARY 30 8 UNDERSTADING MAS 36 3
Slide 5: MAS at a Glance
MAS at a Glance 25° evweirs [25+ Years of Endeavours 7 Strong Retail Presence & Distribution Network Delhi NCR • 1 branch Rajasthan Chhattisgarh l ₹ 76,060 Mn. 7 149 : • 1 branch : • 22 branches covering , major towns AUM States and NCR Branches of Delhi Gujarat • ' 60 branches ' across the state --
Slide 6: Growth
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO 5
Slide 7: Journey of 108 Quarters
Journey of 108 Quarters 25° evweirs . Asset Under Management (AUM) --- --- --- -- (In ₹ Mn.) --- --- 53,384 59,663 53,724 62,468 41,570 31,561 25,650 20,052 20 -- --- --- 1,510 2,312 2,597 2,682 3,884 5,118 6,909 10,123 13,910 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q --- --- -
Slide 8: Growing consistently and steadily
Growing consistently and steadily- Our growth journey of LAST 15 YEARS SINCE OUR FIRST CAPITAL RAISE… 9A¥ z; 'e tower ofDitn6ion ENDEAVOURS ASSETS UNDER MANAGEMENT (AUM) 62,468 (In ₹ Mn.) CAGR: 24.58%* r------------------- ✓ Despite various micro and macro -- headwinds including demonetization, GST,
Slide 9: Strong Fundamentals
25° socio~s STRONG FUNDAMENTALS 8
Slide 10: Enablers for Consistent Growth
Enablers for Consistent Growth 9A! le tower ofDistribution z ENDEAVOURS STRONG PROVISION BUFFER & HIGHLY CAPITALISED PORTFOLIO QUALITY ֍ Highly capitalised for future growth. Sufficient capital to continue the growth ֍ Consistent track record of high-quality momentum. 2. 3. portfolio with Net Stage
Slide 11: Leveraging Technology Across Spectrum
Leveraging Technology Across Spectrum 25° evweirs 1. Origination 2. Decisioning Assess Credit worthiness through pre-set Business Rules → Centralized Onboarding System to capture new Engine (BRE) & APIs plugins leads data digitally → eKYC – Enables paperless verification of customer’s → Captured Lea
Slide 12: Enhancing Distribution Strength
Enhancing Distribution Strength 9A¥ Te Power ofDistribution z: ENDEAVOURS Co – Lending Partnership FinTech Collaboration @as 3rfs 1er?rs ¥ Yubi Ill Bank of Maharashtra 5loanlap (etsee VT Wt a - ea» ufan va» da I UPWARDS @) smart.coin woe w gAI- CASH@ Relationsfiip beyond 6anking LENDINGKATT zploan I
Slide 13: Diversified Product Offerings Presenting Significant Growth Opportunities
Diversified Product Offerings Presenting Significant 25° evweirs Growth Opportunities MAS FOCUSES ON SERVING THE UNDERSERVED CREDIT NEEDS OF MID AND LOW INCOME GROUP SEGMENTS .---------------------------------------------------------------------------� Micro-Enterprise '' → Loans of up to ₹ 300,000
Slide 14: AUM by Product Category
AUM by Product Category «any wt4i 25° iw or ofoutnib.tic evweirs AUM by Product Category (₹ Mn.) Segment Performance Dec -22 vs. Dec-21 ■ Micro-Enterprise loans(MEL) ■ SME loans 2-Wheeler loans Commercial Vehicle loans ■ Salaried,-Personal Loans Micro-Enterprise Loans ' 76,060 I 1,948 ,- - I I 2,918
Slide 15: Liability Management
Liability Management 25° evweirs SOURCES OF FUND BORROWING (In ₹ Mn.) as on December 31, 2022 ❶ The composition of our liability mix ensures healthy ALM and well diversified resource mix. 59,334 ❷ The Company withstood the litmus test very successfully 0.1% during this most challenging period. 10% 4
Slide 16: Way Forward
25° socio~s WAY FORWARD 15
Slide 17: Going Forward
Going Forward 25° evweirs ASSET CREATION LIABILITY MANAGEMENT OPERATIONAL EXCELLENCE ✓ To anchor to our belief that, growth along ✓ Ideal debt resource mix, ensuring ✓ Learning and Unlearning is a constant with quality is the key to enhance the continuous flow of funds while endeavour at MAS shareho
Slide 18: Standalone Financial Review
25° socio~s STANDALONE FINANCIAL REVIEW 17
Slide 19: Key Highlights – Q3 FY23
Key Highlights – Q3 FY23 ASSET UNDER MANAGEMENT (AUM) tee PROFIT AFTER TAX (PAT) le RETURN ON AVG. NET 0 32.46 ₹513 0 27.80% WORTH* ₹76,060 Mn. % (December-21: ₹ 57,421 Mn.) Mn. 15.69% RETURN ON AVG. (Q3 FY22: ₹ 401 Mn.) BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (COB) 2.72%
Slide 20: Financial Performance – Q3 FY23
Financial Performance – Q3 FY23 25° evweirs (In ₹ Mn.) ASSETS UNDER MANAGEMENT (AUM) NET WORTH 32.46% 11.77% 14,271 13,085 12,768 11,726 76,060 9,809 59,663 62,468 57,421 53,724 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 ON & OFF BOOK AUM ■ ON BOOK ■ OFF BOOK 25% 19% 19% 1
Slide 21: Financial Performance – Q3 FY23
Financial Performance – Q3 FY23 25° evweirs REVENUE NET INTEREST INCOME (NII) (In ₹ Mn.) 6,727 6,575 5,939 4,005 3,294 3,379 46.95% 40.75% 2,524 1,718 1,248 887 FY20 FY21 FY22 Q3 FY22 Q3 FY23 FY20 FY21 FY22 Q3 FY22 Q3 FY23 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) 921 864 1,666 1,578 1,435 581 50.32
Slide 22: Financial Performance – Q3 FY23
Financial Performance – Q3 FY23 25° evweirs RETURN ON AVG. NET WORTH (RONW)** RETURN ON AVG. AUM (ROAUM)* 19.30% 2.95% 2.86% 2.78% 2.72% 15.69% 2.53% 14.65% 14.05% 14.08% FY20 FY21 FY22 Q3 FY22 Q3 FY23 FY20 FY21 FY22 Q3 FY22 Q3 FY23 * Quarterly figures have been annualized. ** Networth considered wi
Slide 23: Financial Performance – Q3 FY23
Financial Performance – Q3 FY23 25° evweirs Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)^* OPERATING EXPENSE AS % OF INCOME^* 2.28% 1.99% 16.29% 16.66% 14.02% 1.53% 1.59% 12.84% 9.78% 1.02% FY20 FY21 FY22 Q3 FY22 Q3 FY23 FY20 FY21 FY22 Q3 FY22 Q3 FY23 Efficiently maintaining the quali
Slide 24: Financial Performance – Q3 FY23
Financial Performance – Q3 FY23 25° evweirs Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO *(CAR) 4.16 29.70% 26.85% 26.35% 27.41% 3.48 3.41 24.47% 3.18 3.12 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 INTEREST COVERAGE RATIO (ICR) 1.84 1.73 1.66 1.65
Slide 25: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality 25° evweirs ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 1.59% 0.35% 1.69% 1.71% 1.01% 1.78% 4.00% 0.41% 1.25% 0.58% 0.64% 0.91% 0.45% 0.82% 0.82% 0.47% 1.22% 0.88% 0.67% 2.00% 0.87% 1.06% 1.75% 1.87% 1.77% 1.42% 1.28% 0.00% Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 ■ 1 –
Slide 26: Credit Quality
Credit Quality 25° evweirs (In ₹ Mn.) Dec-22 Dec-21 Particulars Dec-22 Dec-21 Particulars AUM Provision AUM Provision Gross Stage 1 And Stage 2 Assets As % Of On Book Assets 97.81% 97.84% Stage 1 60,974.71 218.64 44,679.57 146.65 Stage 2 668.44 70.06 857.86 96.85 Stage 1 & Stage 2 Assets (Standard A
Slide 27: Constantly Maintaining Quality Portfolio
Constantly Maintaining Quality Portfolio 25° evweirs Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 2.50% 2.30% 2.35% 2.28% 2.27% 2.21% 2.26% 2.23% 1.94% 2.00% 1.42% 1.80% 1.50% 1.74% 1.76% 1.70% 1.63% 1.60% 1.60% 1.52% 1.00% 1.14% 0.50% 0.00% Mar-20 Mar-21 June-21 S
Slide 28: Financial Statement: FY20 – 9M FY2022-23
Financial Statement: FY20 – 9M FY2022-23 25° evweirs (In ₹ Mn.) PROFIT & LOSS STATEMENT BALANCESHEET STATEMENT Particulars FY 2020 FY 2021 FY 2022 9M FY2023 Particulars Mar-20 Mar-21 Mar-22 Dec-22 ASSETS Total Revenue 6,727 5,939 6,575 6,808 Financial assets 44,906 50,869 59,763 74,906 Loans 33,485
Slide 29: Shareholding Profile
25° socio~s SHAREHOLDING PROFILE 28
Slide 30: Marquee FIIs and DIIs Shareholders
Marquee FIIs and DIIs Shareholders 25° evwcivi Shareholding as on 31st December 2022 Marquee Investors 1.53% Motilal Oswal Private Equity 7.53% ■ Promoter & Promoter Group Axis Mutual Fund 7.40% IDFC Mutual Fund ■ Mutual Funds PGIM India Mutual Fund 9.81% ■ Trust TATA AIA Life Insurance Nippon India
Slide 31: MAS Rural Housing & Mortgage Finance Limited (MRHMFL)
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary 30
Slide 32: About MRHMFL
About MRHMFL MAS is targeting affordable housing finance segment through its subsidiary • MAS Rural Housing & Mortgage Finance Limited (“MAS Housing” or MRHMFL) is a non-deposit taking , NHB registered, housing finance institution. It was incorporated in 2008 and headquartered in Ahmedabad, Gujarat
Slide 33: Financial Performance – Q3 FY23
Financial Performance – Q3 FY23 (In ₹ Mn.) ASSETS UNDER MANAGEMENT (AUM) NET WORTH 7.81% 30.60% 652 614 604 4,008 510 539 3,163 3,069 2,865 2,849 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 BORROWING REVENUE* 2,838 2,225 2,269 2,220 2,278 384 353 358 25.38% 89 111 Mar-20 Ma
Slide 34: Financial Performance – Q3 FY23
Financial Performance – Q3 FY23 PROFIT AFTER TAX (PAT) NET INTEREST INCOME (NII) (In ₹ Mn.) 46 156 140 142 29 29.39% 52.75% 17 16 52 41 10 FY20 FY21 FY22 Q3 FY22 Q3 FY23 FY20 FY21 FY22 Q3 FY22 Q3 FY23 NET STAGE 3 ASSETS # GROSS STAGE 3 ASSETS # 0.65% 0.69% 0.59% 0.59% 0.62% 0.53% 0.54% 0.46% 0.49% 0
Slide 35: Liability Management
Liability Management Sources of Fund ❶ The composition of our liability mix ensures healthy ALM and well diverse resource mix. as on 31st December 2022 ❷ The Company continues to demonstrate its capability of efficient liability management. ❸ Capital adequacy ratio, as on 31st December 2022 is 42.46
Slide 36: Credit Quality
Credit Quality (In ₹ Mn.) Dec-22 Dec-21 Particulars Dec-22 Dec-21 Particulars AUM Provision AUM Provision Stage 1 And Stage 2 Assets As % Of On Book Assets 99.33% 99.21% Stage 1 3,029.94 3.12 2,360.93 3.32 Stage 1 And Stage 2 Assets ( Standard Assets) 0.37% 0.57% Provisioning Stage 2 163.05 8.68 213
Slide 37: Understanding MAS
25° socio~s UNDERSTANDING MAS 36
Slide 38: About MAS: Fundamentals
About MAS 25° evweirs VISION MISSION BELIEF To be one of the most efficient To constantly endeavor, to attain excellence and “We have miles to go & Promises to keep……” distributors of financial services and create a very wide Financial distribution network and “Together we can and we will” create va
Slide 39: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network 25° evweirs Through NBFC Partners (1/3) AIM & OUR UNDERSTANDING Efficient last mile delivery of credit Value chain approach has proven to be Better quality of intermediation with Revenue sharing model ensures scalability across its product range namely MEL, the
Slide 40: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network 25° evweirs Through NBFC Partners (2/3) IMPACT MAS NBFCs Borrowers Eco-System • Widens its network while maintaining • Value addition in improving their • Creates an all-round enabling • Catalyst in Efficient last mile delivery a relatively lower risk profile s
Slide 41: Sharpening the Learning Curve (3/3)
Sharpening the Learning Curve (3/3) 25° rvwci~ The learning curve is further strengthened: CREDIT ASSESSMENT Continuous strengthening of due diligence and audit process - both pre and post disbursement. Our proven track record of Further strengthening the field due more than ₹ 19,500 Crore diligence
Slide 42: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & .== er ef tr.6tic 25° evweirs Risk Management Framework MAS aims to give credit ................. where it is due with the dictum of adherence and adaptability I I ................ ___________ ) Robust credit assessment Credit assessment process overview
Slide 43: Team MAS
Team MAS 25° evweirs EXPERIENCED PROMOTER ▪ Mr. Kamlesh Chimanlal Gandhi, aged 56 years, is the Founder, Chairman and Managing Director of MAS since inception. ▪ He is a proficient and experienced industry practitioner with a brilliant track record, which includes over two decades of managing and pr
Slide 44: Team MAS
Team MAS 9A' z; le ewer ofDistribution ENDEAVOURS EMINENT DIRECTORS . Mrs. Darshana Saumil Pandya Mr. Bala Bhaskaran Mr. Chetan Ramniklal Shah Mr. Umesh Rajanikant Shah Mrs. Daksha Niranjan Shah Executive Director & CEO Independent Director Independent Director Independent Director Independent Direc
Slide 45: Major Events and Milestones
Major Events and Milestones c 25'¥ JI T 1995 ✓ On incorporation, commenced retail finance operations with Two-wheeler and Micro-Enterprise loans 2016 1995 ✓ Bank loan rating was upgraded to ‘IND A’ with ‘Stable outlook ✓ Raised subordinate debentures of ₹ 400 Mn [[2006 2006 ✓ Received first round of
Slide 46: Registered Office and Investor Contact
THROUGH Fi~NCIAL SERVICES LTn Te Power ofDistribution REGISTERED OFFICE MAS Financial Services Limited 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009 www.mas.co.in INVESTOR CONTACT Mr. Ankit Jain Mr. Meet Chande Chief Financial Officer Investor Relations Manager 079-41106682 079-41
MAS Financial Services — Q3 FY23 Earnings Presentation on 6ix