Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q3 FY22 Earnings Presentation
44 slides from Mas Financial Services's earnings presentation, Feb 2, 2022
Slide 1: The Power of Distribution
The Power of Distribution 81S ffibF FINANCIAL FTNANcIAL SERVICES SERVIcES LIMITED LtMtrED tfrc Aower of <Distrihution February 02, 2022 February 02,2022 MFSL/SEC/EQ/2022/08 MFSL/SEC/EQ/2022/08 To, To, To, Manager, The Manager, General Manager General BSE Limited Limited National Stock National Stock
Slide 2: Investor Presentation – Q3 FY22
9A? z ENDEAVOURS Te Power ofDistri6ution INVESTOR PRESENTATION – Q3 FY22 CT1
Slide 3: Disclaimer
Disclaimer 25° rvosiob~s 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. Thi
Slide 4: Table of Content
Table of Content 25° rsoti%rs 04 MAS AT A GLANCE 05 GROWTH STORY 08 LEVERAGING TECHNOLOGY ACROSS SPECTRUM 09 STRONG FUNDAMENTALS 10 NAVIGATING COVID 19 PANDEMIC 11 PRODUCT OFFERINGS 13 LIABILITY MANAGEMENT 14 GOING FORWARD 15 FINANCIAL REVIEW 22 CREDIT QUALITY 25 REPUTED MARQUEE INVESTORS 26 FINANCI
Slide 5: MAS at a Glance
MAS at a Glance 25° evwtio»rs I 25 Years of Endeavours Strong Retail Presence & Distribution Network 57,421 Mn. 6 114 Rajasthan • 15 branches covering major towns f Delhi NCR • 1 branch AUM States and NCR of Delhi Branches g, •' Gujarat • 56 branches ' across the state Madhya Pradesh 4,100 6,50,000+
Slide 6: Growth: Belief & Philosophy
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO 5
Slide 7: Journey of Quarters
Journey of 104 Quarters 25° evwtio»rs -- . Asset Under Management (AUM) --- --- --- --- 59,663 --- --- 53,384 53,724 41,570 -- -- -- -- ------6'-ii1/-- 25,650 31,561 --- --- -- -- -- 13,910 20,052 -- 20 1,510 2,312 2,597 2,682 3,884 5,118 6,909 10,123 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 8
Slide 8: Growing consistently and steadily
Growing consistently and steadily- Our growth journey of LAST 14 YEARS SINCE OUR FIRST CAPITAL RAISE… ASSETS UNDER MANAGEMENT 4r%is «fut nee«4+ 25° sot7ors (AUM) CAGR 25.19%* 53,724 2,312 • Despite various micro and macro headwinds including demonetisation, GST, NBFC liquidity FY07 FY21 crisis, and
Slide 9: Leveraging technology across spectrum
Leveraging technology across spectrum 9A' z; le ewer ofDistribution ENDEAVOURS 1. Origination 2. Decisioning • Centralized Onboarding System to capture new leads data Assess Credit worthiness through pre-set Business Rules Engine digitally (BRE) & APIs plugins • Captured Leads authenticated via mobi
Slide 10: Strong Fundamentals
Strong Fundamentals 25° evwtio»rs Enablers for Navigating through current unprecedented challenges SUCCESSFUL TRACK STRONG PROVISION HIGHLY CAPITALISED ROBUST LIQUIDITY RECORD BUFFER & PORTFOLIO POSITION QUALITY • Successfully withstood • Highly capitalised for • Consistent track record of • Cash an
Slide 11: Navigating COVID 19 pandemic
Navigating COVID 19 pandemic ASSETS AND PORTFOLIO QUALITY • The AUM stood at INR 57,421 Mn. a growth of 13.60% over the corresponding period. However, the two quarters are not comparable due to the pandemic impact. The Gross Stage 3 Assets is 2.35% and Net Stage 3 Assets is 1.76% of AUM as on 31st D
Slide 12: Diversified product offerings presenting significant growth opportunities
Diversified product offerings presenting significant 25° evwtio»rs growth opportunities MAS focuses on serving the underserved credit needs of mid and low income group segments 1--------------------------------------------------------------------, Micro-Enterprise INR 28,747 Mn. '' Loans of up to
Slide 13: AUM by Product Category
AUM by Product Category 25° evwtio»rs AUM by Product Category (INR Mn.) Segment Performance ■ Micro-Enterprise loans(MEL) ■ SME loans ■ 2-Wheeler loans ■ Commercial Vehicle loans Dec -21 vs Dec-20 59,663 57,421 5.23% 53,384 1,547 53,724 4,003 50,547 2,302 Micro-Enterprise loans (MEL) 1,582 2,029 3,6
Slide 14: Liability Management
Liability Management 25° evwtio»rs SOURCES OF FUND BORROWING as on 31st Dec 2021 COST OF BORROWING (COB)* 9.32% 9.10% 9.04% 43,575 CASH CREDIT 8.86% 8.80% 26% DIRECT ASSIGNMENT 36,606 (Incl. Co-lending) 21% 31,227 29,930 25,632 SECURITISATION 1% NON-CONVERTIBLE DEBENTURES 12% Mar-19 Mar-20 Mar-21 De
Slide 15: Going Forward
Going Forward 25° evwtio»rs ASSET CREATION To anchor to our belief that, growth along with quality is the key to enhance the shareholders’ value. Anticipated growth for the next five years to be in the range of 20% - 25% with an understanding of recalibrating it depending on the macro situation,
Slide 16: Financial Review
25° socio~ FINANCIAL REVIEW 15
Slide 17: Key Highlights – Q3 FY22
Key Highlights – Q3 FY22 ASSET UNDER MANAGEMENT (AUM) %%%% PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH* INR 57,421 Mn. 0 13.60 % (Dec - 20: INR 50,547 Mn.) INR 401 Mn. 10.84% (Q3 FY21: INR 362 Mn.) 14.08% RETURN ON AVG. BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (COB) %%#
Slide 18: Financial Performance – Q3 FY22
Financial Performance – Q3 FY22 25° evwtio»rs ASSETS UNDER MANAGEMENT (AUM) NET WORTH CAGR 16.52% 12.72% CAGR 0.32% 13.60% 1·····························: ! ! 11726 12768 59,663 57,421 11327 53,384 53,724 50,547 9809 8637 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 ON & OFF
Slide 19: Financial Performance – Q3 FY22
Financial Performance – Q3 FY22 25° evwtio»rs REVENUE NET INTEREST INCOME (NII) CAGR 3.10% CAGR -3.62% 6,727 5,939 5,587 20.89% 4005 3546 3294 13.44% 1,421 1,718 782 887 FY19 FY20 FY21 Q3 FY21 Q3 FY22 FY19 FY20 FY21 Q3 FY21 Q3 FY22 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) CAGR -13.68% CAGR 0.07% 86
Slide 20: Financial Performance – Q3 FY22
Financial Performance – Q3 FY22 25° evwtio»rs RETURN ON AVG. NET WORTH (RONW)** RETURN ON AVG. AUM (ROAUM)* 18.89% 19.30% 3.02% 2.95% 2.80% 2.86% 2.53% 14.65% 14.52% 14.08% FY19 FY20 FY21 Q3 FY21 Q3 FY22 FY19 FY20 FY21 Q3 FY21 Q3 FY22 ** Networth considered without OCI 19 * Quarterly figures have be
Slide 21: Financial Performance – Q3 FY22
Financial Performance – Q3 FY22 25° evwtio»rs Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)*^ OPERATING EXPENSE AS % OF INCOME^ 1.99% 16.29% 1.64% 13.96% 1.53% 12.84% 9.78% 10.27% 1.02% 1.13% FY19 FY20 FY21 Q3 FY21 Q3 FY22 FY19 FY20 FY21 Q3 FY21 Q3 FY22 Efficiently maintaining the qual
Slide 22: Financial Performance – Q3 FY22
Financial Performance – Q3 FY22 25° evwtio»rs Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO *(CAR) 32.61% 3.41 29.70% 3.18 3.12 27.41% 2.97 26.86% 26.85% 2.64 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 INTEREST COVERAGE RATIO (ICR) 2.08 1.84 1.73 1.
Slide 23: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality 25° evwtio»rs ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 0.71% 1.59% 1.36% 0.69% 0.34% 1.71% 1.01% 0.35% 1.00% 4.00% 1.04% 0.41% 1.25% 0.64% 1.18% 0.91% 1.00% 0.82% 1.22% 0.88% 2.00% 1.06% 2.60% 2.49% 1.75% 1.87% 1.28% 0.00% Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 ■ 1
Slide 24: Credit Quality
Credit Quality 25° evwtio»rs Dec-21 (As per RBI Guideline (In INR Mn.) Dec-21 (As per earlier rule) Dec-20 Particulars dated 12 November) AUM Provision AUM Provision AUM Provision Stage 1 44679.57 146.65 44681.59 146.71 32630.13 153.20 Stage 2 857.86 96.85 933.68 105.72 593.60 65.37 Stage 3 1005.28
Slide 25: Constantly maintaining quality portfolio
Constantly maintaining quality portfolio 25° evwtio»rs Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 2.50% 2.30% 2.35% 1.94% 2.00% 1.70% 1.39% 1.42% 1.80% 1.50% 1.76% 1.52% 1.33% 1.00% 1.14% 1.14% 0.50% 0.00% Mar-19 Mar-20 Mar-21 Dec-20 Sept-21 Dec-21 GROSS STAGE 3
Slide 26: Reputed Marquee FIIs and DIIs shareholders base
Reputed Marquee FIIs and DIIs shareholders base 25° evwtio»rs Shareholding as on 31st Dec 2021 Marquee Non Promoter Shareholders MOTILAL PRIVATE EQUITY Mutual Fund 8.50% AXIS MUTUAL FUND IDFC MUTUAL FUND Trust TATA AIA LIFE INSURANCE 7.40% MOTILAL OSWAL MUTUAL FUND ■ Foreign Portfolio ASK INVESTMENT
Slide 27: Financial Statement: FY19 – 9M FY2021-22
Financial Statement: FY19 – 9M FY2021-22 PROFIT & LOSS STATEMENT 25° evwtio»rs INR Mn. FY 2019 FY 2020 FY 2021 9M FY 2021-22 Total Revenue 5587 6727 5939 4770 Expenses 3387 4446 4010 3221 Finance Costs 2041 2722 2645 2290 Operating Expense 780 864 581 628 Provisions and Loan Losses 565 859 784 303 P
Slide 28: MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary 27
Slide 29: 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 30: Navigating COVID 19 pandemic
Navigating COVID 19 pandemic ASSETS AND PORTFOLIO QUALITY • The AUM stood at INR 3,069 Mn. a growth of 10.67% over the corresponding period. However, the two quarters are not comparable due to the pandemic impact. The Gross Stage 3 Assets is 0.69% and Net Stage 3 Assets is 0.49% of AUM as on 31st De
Slide 31: Financial Performance – Q3 FY22
Financial Performance – Q3 FY22 ASSETS UNDER MANAGEMENT (AUM) NET WORTH 10.67% 14.12% CAGR 2.68% CAGR 7.92% 3,069 604 2,702 2,865 2,849 2,773 539 530 510 463 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 GROSS STAGE 3 ASSETS & NET STAGE 3 ASSETS# BORROWING ■ GROSS STAGE 3 ASS
Slide 32: Financial Performance – Q3 FY22
Financial Performance – Q3 FY22 REVENUE NET INTEREST INCOME (NII) CAGR 4.65% CAGR 4.18% 384 140 142 353 130 325 3.02% 18.48% 86 89 34 41 FY19 FY20 FY21 Q3 FY21 Q3 FY22 FY19 FY20 FY21 Q3 FY21 Q3 FY22 PROFIT BEFORE TAX (PBT) PROFIT AFTER TAX (PAT) CAGR -6.18% :·········································
Slide 33: Liability Management
Liability Management • The composition of our liability mix ensures healthy ALM and well diverse resource mix. Sources of Fund as on 31st Dec 2021 • The Company continues to demonstrate its capability of efficient liability management. • Capital adequacy ratio, as on 31st Dec 2021 is 50.98% against
Slide 34: Credit Quality
Credit Quality Stage 1 Stage 2 Stage 3 Particulars TOTAL ON BOOK AUM Dec-21 2,360.93 213.51 20.42 2,594.86 Provision 3.32 11.30 6.08 20.70 ---- AUM Dec-20 2,366.92 177.27 9.37 2,553.56 Provision 2.31 9.50 2.81 14.61 (In INR Mn.) Assigned Portfolio 474.34 N/A 219.66 N/A TOTAL AUM 3,069.21 2,773.22 Pa
Slide 35: Understanding MAS
25° socio~ UNDERSTANDING MAS 34
Slide 36: About MAS
About MAS 25° rvosiob~s VISION MISSION Jl 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” crea
Slide 37: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network 25° evwtio»rs 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, t
Slide 38: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network 25° evwtio»rs 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
Slide 39: Sharpening the learning curve (3/3)
Sharpening the learning curve(3/3) 25° rvwciri 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 INR 15,000 Crore diligen
Slide 40: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & 25° evwtio»rs Risk Management Framework ,------------------------------------------------------------------------------. MAS aims to give credit where it is due with the dictum of adherence and adaptability �-----------------------------------------------
Slide 41: Team MAS
Team MAS 25° evwtio»rs EXPERIENCED PROMOTER Mr. Kamlesh Chimanlal Gandhi, aged 55 years, is the Founder, Chairman and Managing Director of MAS since inception. He visualized the opportunities in the retail financial services very early and has been leading the strategic initiatives and the execu
Slide 42: Team MAS: Eminent Directors
Team MAS 9A' le tower ofDistribution z 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 Directo
Slide 43: Major events and milestones
Major events and milestones (5E or·fusu 25¥ 'ENDEocps □ □ □ On incorporation, commenced retail Listing of Equity Shares on BSE & NSE Disbursement and AUM crossed Received capital infusion of INR 350 1995 finance operations with Two-wheeler and Micro-Enterprise loans 2013 INR 10 Bn. 2018 Mn.
Slide 44: The Power of Distribution
THROUGH A FINANCIAL SERVICES LT; 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. Nishant Vyas Chief Financial Officer Investor Relations Manager 079-41106682 07
MAS Financial Services — Q3 FY22 Earnings Presentation on 6ix