Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q1 FY24 Earnings Presentation
60 slides from Mas Financial Services's earnings presentation, Aug 2, 2023
Slide 1: Cover letter to stock exchanges
8HS FINANCIAL SERVICES LIMITED $ii«tut_snteK Te Power ofDistribution MFSL/SEC/EQ/2023/68 August 02, 2023 To, To, The Manager, General Manager BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block Mumbai – 400001 Bandra-Kurla
Slide 2: Investor Presentation – Q1FY24
9py THROUGH { ENDEAVOURS A Te Power ofDistribution INVESTOR PRESENTATION – Q1FY24 LT1 ` 2022-23 1995-96
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 06 3 STRONG FUNDAMENTALS 09 4 WAY FORWARD 18 5 STANDALONE FINANCIAL REVIEW 20 6 SHAREHOLDING PROFILE 31 7 MAS RURAL HOUSING & MORTGAGE FINANCE LIMITED - SUBSIDIARY 33 8 FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG) 39 9 UNDERSTANDI
Slide 5: MAS at a Glance
MAS at a Glance 25° evweirs [25+ Years of Endeavours 7 Diversified Product Portfolio ₹ 84,178 Mn. 7 155 AUM States and NCR Branches of Delhi Micro-Enterprise SME Loans Loans (MEL) 10,500+ Customer locations . 7,50,000+ Active Loan accounts ..............................................% sl 2-Wheeler
Slide 6: Strong Distribution Network
Strong Distribution Network 25° evweirs 155 - Branches Delhi NCR 1 branch Rajasthan 10,500+ Chhattisgarh 25 branches Customer Locations covering major 1 branch towns u Gujarat 60 branches across the state Madhya Pradesh Maharashtra 33 branches covering major towns 28 branches covering major ', __ --
Slide 7: Growth
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO 6
Slide 8: Journey of 112 Quarters
Journey of 112 Quarters 25° evweirs --- --- -- --➔ Asset Under Management (AUM) --- --- --- --- 80,926 (In ₹ Mn.) 62,468 53,384 59,663 53,724 41,570 31,561 -- --- --- 25,650 20,052 6,909 10,123 13,910 2,312 2,597 2,682 3,884 5,118 1,510 .. 20 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96
Slide 9: Growing consistently and steadily – last 16 years
Growing consistently and steadily - Our growth journey of LAST 16 YEARS SINCE OUR FIRST CAPITAL RAISE… 9A¥ z; ENDEAVOURS le tower ofDitri6tie ASSETS UNDER MANAGEMENT (AUM) 80,926 (In ₹ Mn.) CAGR: 24.88%* ✓ Despite various micro and macro -- headwinds including demonetization, GST, NBFC liquidity cri
Slide 10: Strong Fundamentals
25° socio~s STRONG FUNDAMENTALS 9
Slide 11: Enablers for Consistent Growth
Enablers for Consistent Growth 25° evweirs ➔Successfully withstood multiple ➔Highly capitalised for future ➔Consistent track record of high- headwinds over the years growth. Sufficient capital to quality portfolio with Net Stage 3 continue the growth momentum Assets of 1.47% as on 30th June ➔Proven
Slide 12: Leveraging Technology Across Spectrum
Leveraging Technology Across Spectrum 25° evweirs 4 ----,> -----, Origination Decisioning ' L Operations !''' Disbursement → Centralized Onboarding System Venus Assess Credit worthiness through pre-set Mars Business Rules Engine (BRE) & APIs plugins Neptune → Remote Digital Signatures Mercury – eSig
Slide 13: Enhancing Distribution Strength
Enhancing Distribution Strength 9A¥ Te Power ofDistribution z: ENDEAVOURS Co – Lending Partnership FinTech Collaboration @a sri 1ere Bank of Maharashtra er rat T er zploar kgab Relationship beyond banking 12
Slide 14: 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 15: Asset Under Management – by Product Category (1/2)
Asset Under Management – by Product Category (1/2) 25° evweirs (In ₹ Mn.) ■ Micro-Enterprise loans(MEL) ■ SME loans ■ 2-Wheeler loans ■ Commercial Vehicle loans ■ Salaried Personal Loans ,----------. ' 80,926 : '' 84,178 ' I---------� ' �--------- I 3,026 3,049 r----------, 4,484 ,----------. 3,725
Slide 16: Asset Under Management – by Product Category (2/2)
Asset Under Management – by Product Category (2/2) 9p" 'e Power ofDistribution z ENDEAVOURS (In ₹ Mn.) Jun 23 vs. Jun 22 ` Micro Enterprise Loans SME Loans Two Wheeler Loans Commercial Vehicle Loans Salaried Personal Loans --------------------- 1 ,---------------------- ' A } ' ; ' A ; I 16.14% YoY
Slide 17: Asset Under Management – Distribution Channel Wise
Asset Under Management – Distribution Channel Wise 25° evweirs (In ₹ Mn.) Increasing share of Direct Retail Distribution 70% 70% 1,20,000 62% 1,20,000 63% 60% 55% 60% 1,00,000 52% 1,00,000 --------, '' 80,926 '' 50% ' 84,178 '' lb 50% 80,000 42% al 80,000 --------, --------, ' 66,839 ' . ' 53,724 '
Slide 18: Liability Management
Liability Management 25° evweirs SOURCES OF FUND BORROWING (In ₹ Mn.) as on June 30, 2023 ❶ The composition of our liability mix ensures healthy ALM and well diversified resource mix. 59,079 59,852 ❷ The Company withstood the litmus test very successfully 50,520 during this most challenging period.
Slide 19: Way Forward
25° socio~s WAY FORWARD 18
Slide 20: 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 21: Standalone Financial Review
25° socio~s STANDALONE FINANCIAL REVIEW 20
Slide 22: Key Highlights – Q1 FY24
Key Highlights – Q1 FY24 ASSET UNDER MANAGEMENT (AUM) tee PROFIT AFTER TAX (PAT) le RETURN ON AVG. NET 0 25.94 ₹573 0 24.16% WORTH* ₹84,178 Mn. % (June-22: ₹ 66,839 Mn.) Mn. 15.94% RETURN ON AVG. (Q1 FY23: ₹ 461 Mn.) BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (COB) 2.96% - f-
Slide 23: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 25° evweirs (In ₹ Mn.) ASSETS UNDER MANAGEMENT (AUM) NET WORTH 25.94% 14.28% 15,057 15,779 13,406 13,808 12,050 80,926 84,178 62,468 66,839 53,724 Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 ON & OFF BOOK AUM ■ ON BOOK ■ OFF BOOK 25% 19% 19%
Slide 24: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 25° socio~s REVENUE NET INTEREST INCOME (NII) (In ₹ Mn.) 9,491 4,743 6,571 3,375 5,599 2,954 41.60% 30.83% 2,801 1,373 1,978 1,050 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 OPERATING EXPENSE PROFIT AFTER TAX (PAT) 1,566 2,010 1,576 921 22.71% 1,181
Slide 25: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 25° evweirs RETURN ON AVG. NET WORTH (RONW)** RETURN ON AVG. AUM (ROAUM)* 15.94% 2.80% 2.85% 2.77% 15.25% 2.71% 14.76% 13.64% 11.86% 2.08% FY21 FY22 FY23 Q1FY23 Q1FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 ** Networth considered without OCI * Quarterly figures have been annu
Slide 26: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 25° evweirs Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)* OPERATING EXPENSE AS % OF INCOME* 2.18% 2.15% 17.58% 2.07% 16.50% 15.24% 14.02% 1.59% 10.37% 1.02% FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Efficiently maintaining the qualit
Slide 27: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 25° evweirs Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO (CAR) 26.85% 26.35% 3.92 25.25% 25.28% 25.31% 3.66 3.79 3.39 3.04 Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 INTEREST COVERAGE RATIO (ICR) 1.60 1.66 1.66 1.56
Slide 28: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality 25° evweirs ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 1.59% 1.67% 1.59% 0.35% 1.69% 1.75% 4.00% 1.25% 0.48% 0.58% 0.54% 0.49% 0.53% 0.51% 0.82% 0.33% 1.22% 1.13% 0.86% 2.00% 0.87% 1.39% 1.87% 1.81% 1.91% 1.42% 1.09% 0.00% Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 ■ 1 –
Slide 29: Credit Quality
Credit Quality 25° evweirs (In ₹ Mn.) Jun-23 Jun-22 Particulars Jun-23 Jun-22 Particulars AUM Provision AUM Provision Gross Stage 1 And Stage 2 Assets As % Of On Book Assets 97.97% 97.86% Stage 1 64,427.51 187.79 52,953.04 162.89 Stage 2 796.23 122.01 976.52 85.04 Stage 1 & Stage 2 Assets (Standard
Slide 30: Constantly Maintaining Quality Portfolio
Constantly Maintaining Quality Portfolio 25° evweirs Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 3.00% 2.50% 2.30% 2.35% 2.28% 2.27% 2.21% 2.26% 2.23% 2.15% 2.13% 2.00% 1.50% 1.74% 1.80% 1.76% 1.70% 1.63% 1.60% 1.60% 1.52% 1.47% 1.00% 0.50% June-21 Sept-21 Dec-21
Slide 31: Financial Statement: FY21 to Q1FY24
Financial Statement: FY21 to Q1FY24 25° evweirs (In ₹ Mn.) PROFIT & LOSS STATEMENT BALANCESHEET STATEMENT Particulars FY 2021 FY 2022 FY2023 Q1FY24 Particulars Mar-21 Mar-22 Mar-23 Jun-23 ASSETS Total Revenue 5,599 6,571 9,491 2,801 Financial assets 50,869 59,763 75,724 77,049 Loans 38,051 45,538 59
Slide 32: Shareholding Profile
25° socio~s SHAREHOLDING PROFILE 31
Slide 33: Marquee FIIs and DIIs Shareholders
Marquee FIIs and DIIs Shareholders 25° evwcivi Shareholding as on 30th June 2023 Marquee Investors 1.59% Motilal Oswal Private Equity 7.35% ■ Promoter & Promoter Group Axis Mutual Fund 7.40% ■ Mutual Funds Bandhan Mutual Fund 9.93% LIC Mutual Fund ■ Trust TATA AIA Life Insurance ■ Foreign Portfolio
Slide 34: MAS Rural Housing & Mortgage Finance Limited (MRHMFL)
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary 33
Slide 35: 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 FY 2008 and headquartered in Ahmedabad, Gujar
Slide 36: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 (In ₹ Mn.) ASSETS UNDER MANAGEMENT (AUM) NET WORTH 31.91% 37.42% 4,501 851 847 4,133 3,412 619 616 3,141 2,832 540 Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 BORROWING REVENUE 2,916 2,988 438 2,445 352 363 2,269 2,220 55.08% 136 88 Mar-21 Ma
Slide 37: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 PROFIT AFTER TAX (PAT) NET INTEREST INCOME (NII) (In ₹ Mn.) 63 212 49 160 141 66.89% 57.97% 29 66 10 16 40 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 GROSS STAGE 3 ASSETS NET STAGE 3 ASSETS 0.70% 0.71% 0.54% 0.54% 0.52% 0.50% 0.37% 0.38% 0.39% 0.26%
Slide 38: Liability Management
Liability Management Sources of Fund ❶ The composition of our liability mix ensures healthy ALM and well diverse resource mix. as on 30th June 2023 ❷ The Company continues to demonstrate its capability of efficient liability management. ❸ Capital adequacy ratio, as on 30th June 2023 is 39.00% agains
Slide 39: Credit Quality
Credit Quality (In ₹ Mn.) Jun-23 Jun-22 Particulars Jun-23 Jun-22 Particulars AUM Provision AUM Provision Stage 1 And Stage 2 Assets As % Of On Book Assets 99.22% 99.36% Stage 1 3,355.37 3.47 2,633.82 3.05 Stage 1 And Stage 2 Assets ( Standard Assets) 0.39% 0.44% 190.30 10.18 161.53 9.25 Provisionin
Slide 40: Focus on Environment, Social, & Governance (ESG)
25° socio~s FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG) 39
Slide 41: Environmental Stewardship
Environmental Stewardship 25° evweirs ❑ The management of MAS Financial Services Limited (MAS) believes in Environmentally Conscious approach for all business & operational activities. ❑ MAS endeavours to create awareness amongst all the stakeholders on the importance of environment conservation & p
Slide 42: Enhancing Social Impact (1/3)
Enhancing Social Impact (1/3) 25° evweirs SHIKSHA PROTSAHAN “Caring for communities is a way of life” ✓ MAS Financial Services Ltd strongly BLOOD MENSTRUAL HYGIENE believes in giving back to society and DONATION PROGRAMME has always been actively involved in various Corporate Social Responsibility a
Slide 43: Enhancing Social Impact (2/3)
Enhancing Social Impact (2/3) 25° evweirs SHIKSHA AROGYA MENSTRUAL HYGIENE HONOURING THE PROTSAHAN ABHIYAN PROGRAMME VALIANT SOLDIERS The Company has identified various Amid the COVID – 19 crises, the The Company’s aim is to increase The Company felicitated the family of bright students from more th
Slide 44: Enhancing Social Impact (3/3)
Enhancing Social Impact (3/3) 9pd u owr ofoutr6wtion z; ENDEAVOURS 4R Shiksha Protsahan Arogya Abhiyan _siaw 19i 8%.% a.. Har eef@reg aaile nil2s oo_o; : « Gsl g go Blood Donation Shiksha Protsahan 43
Slide 45: Strict Governance Compliance
Strict Governance Compliance 25° evweirs ❑ The management of MAS Financial Services Limited adhere to the highest standards of corporate governance and proactively ensure its application across business operations. ❑ Strict compliance with the regulations of SEBI, RBI and other regulators. ❑ Rich ex
Slide 46: Governance Framework
Governance Framework 25° evweirs Board Board of Directors - Advisory Advisory Committee Committee (7 Directors including 5 Independent Directors) to the Board Board I 7 C Committee Chaired by Independent Directors I C Other Committees l / / ֍ Audit Committee ֍ Risk Management Committee ֍ Finance Com
Slide 47: Understanding MAS
25° socio~s UNDERSTANDING MAS 46
Slide 48: About MAS
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 49: Team MAS
Team MAS 25° evweirs EXPERIENCED PROMOTERS ▪ 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 p
Slide 50: Team MAS – Eminent Directors
Team MAS 25° evweirs EMINENT DIRECTORS . Mrs. Darshana Saumil Pandya Mr. Bala Bhaskaran Mr. Chetan Ramniklal Shah Executive Director & CEO Independent Director Independent Director Mrs. Darshana S. Pandya is responsible Mr. Balabhaskaran N. Nair is a Mr. Chetan R. Shah holds a bachelor’s for leading
Slide 51: Team MAS – Eminent Directors
Team MAS EMINENT DIRECTORS . Mr. Umesh Rajanikant Shah Mrs. Daksha Niranjan Shah Mr. Narayanan Sadanandan Independent Director Independent Director Independent Director Mr. Umesh R. Shah is a qualified Mrs. Daksha Niranjan Shah is a Mr. Narayanan Sadanandan has vast Chartered Accountant. He has over
Slide 52: Team MAS
Team MAS Qualified Senior Level Team of Experienced Professionals Mr. Saumil Pandya Mr. Dhvanil K. Gandhi Mr. Himanshu Kanakhara Mr. Ankit Jain President – Retail Assets Business Development Manager Executive Vice President - MRHMFL Chief Financial Officer Vintage with MAS – 27 Years Vintage with MA
Slide 53: Team MAS
Team MAS 25° socio~se Qualified Senior Level Team of Experienced Professionals Mr. Sunil Shah Mr. Gaurang Kasudia CA Deepika Agrawal Mr. Hitesh Ganatra Head –Portfolio Management Head – MIS Head – Internal Audit Head– Human Resources Vintage with MAS – 25 Years Vintage with MAS – 27 Years Vintage wi
Slide 54: Corporate Advisory Committee
Corporate Advisory Committee 25° +socio~ks MAS Financial Services Limited recently formed Corporate Advisory Committee for the year 2023 – 2024. The committee consist of experienced and eminent . persons in their respective fields and will provide strategic inputs and counsel to the company's board
Slide 55: 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 56: 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 57: 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 ₹ 21,000 Crore diligence
Slide 58: 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 59: Major Events and Milestones
Major Events and Milestones ca53 25: [C-7LL Note: As per Calendar Year ·u tor ofoutriftio ENDEAVOURS ✓ On incorporation, commenced retail finance operations ✓ Bank loan rating was upgraded to ‘IND A’ with ‘Stable 1995 with Two-wheeler and Micro-Enterprise loans 2016 1995 outlook ✓ Raised subordinate
Slide 60: 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 — Q1 FY24 Earnings Presentation on 6ix