Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q4 FY23 Earnings Presentation
53 slides from Mas Financial Services's earnings presentation, May 10, 2023
Slide 1: Letter to stock exchanges: Investor Presentation Q4 FY23
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Slide 2: Investor Presentation – Q4FY23
INVESTOR PRESENTATION – Q4FY23 2022-23 1995-96
Slide 3: Disclaimer
Disclaimer 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 presentation
Slide 4: Table of Contents
Table of Contents 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 29 7 MAS RURAL HOUSING & MORTGAGE FINANCE LIMITED - SUBSIDIARY 31 8 FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG) 37 9 UNDERSTANDING MAS 42 3
Slide 5: MAS at a Glance: 25+ Years of Endeavours
MAS at a Glance 25+ Years of Endeavours Strong Retail Presence & Distribution Network Delhi NCR • 1 branch Chhattisgarh Rajasthan ₹ 80,926 Mn. 7 149 • 1 branch • 22 branches covering major towns AUM States and NCR Branches of Delhi Gujarat • 60 branches across the state Madhya Pradesh 9250+ 7,58,000
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 112 Quarters
Journey of 112 Quarters 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 20 1,510 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q 104Q 108Q 112Q 2,010 Profit After Tax (PAT) 1,666
Slide 8: Growing consistently and steadily - growth journey of last 16 years
Growing consistently and steadily - Our growth journey of LAST 16 YEARS SINCE OUR FIRST CAPITAL RAISE… ASSETS UNDER MANAGEMENT (AUM) 80,926 (In ₹ Mn.) CAGR: 24.88%* ✓ Despite various micro and macro headwinds including demonetization, GST, NBFC liquidity crisis, and COVID, 2,312 MAS has displayed re
Slide 9: Strong Fundamentals
STRONG FUNDAMENTALS 8
Slide 10: Enablers for Consistent Growth
Enablers for Consistent Growth 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 3 Assets of 1.52% as on 31st March 2023 ֍
Slide 11: Leveraging Technology Across Spectrum
Leveraging Technology Across Spectrum 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 Leads authentic
Slide 12: Enhancing Distribution Strength
Enhancing Distribution Strength Co – Lending Partnership FinTech Collaboration 11
Slide 13: Diversified Product Offerings Presenting Significant Growth Opportunities
Diversified Product Offerings Presenting Significant 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 to Micro-Enterprises which primarily include ₹ 38,742 Mn. retailers, traders, small manufactu
Slide 14: AUM by Product Category
AUM by Product Category AUM by Product Category (₹ Mn.) Segment Performance Mar -23 vs. Mar-22 Micro-Enterprise loans(MEL) SME loans 2-Wheeler loans Commercial Vehicle loans Salaried Personal Loans Micro-Enterprise Loans 80,926 19.23% 3,049 3,725 62,468 5,544 SME Loans 53,724 3,452 2,029 3,774 29,86
Slide 15: Liability Management
Liability Management SOURCES OF FUND BORROWING (In ₹ Mn.) as on March 31, 2023 ❶ The composition of our liability mix ensures healthy ALM and well diversified resource mix. 59,082 ❷ The Company withstood the litmus test very successfully 8% during this most challenging period. 45,501 – A testimony t
Slide 16: Way Forward
WAY FORWARD 15
Slide 17: Going Forward
Going Forward 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 shareholders’ value
Slide 18: Standalone Financial Review
STANDALONE FINANCIAL REVIEW 17
Slide 19: Key Highlights – FY2022-23
Key Highlights – FY2022 - 23 ASSET UNDER MANAGEMENT (AUM) PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH ₹80,926 Mn. 29.55% (March-22: ₹ 62,468 Mn.) ₹2,010 Mn. 27.55% 15.25% RETURN ON AVG. (FY22: ₹ 1,576 Mn.) BALANCE SHEET ASSETS NET INTEREST INCOME (NII) COST OF BORROWING (COB) 2.93% RETURN ON AVG
Slide 20: Key Highlights – Q4 FY23
Key Highlights – Q4 FY23 ASSET UNDER MANAGEMENT (AUM) PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH* ₹80,926 Mn. 29.55% (March-22: ₹ 62,468 Mn.) ₹556 Mn. 23.44% 16.04% RETURN ON AVG. (Q4 FY22: ₹ 450 Mn.) BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (COB) 2.91% RETURN ON AVG.
Slide 21: Financial Performance – Q4 FY23
Financial Performance – Q4 FY23 (In ₹ Mn.) ASSETS UNDER MANAGEMENT (AUM) NET WORTH 29.55% 12.32% 15,057 13,406 12,050 80,926 53,724 62,468 Mar-21 Mar-22 Mar-23 Mar-21 Mar-22 Mar-23 ON & OFF BOOK AUM ON BOOK OFF BOOK 25% 19% 19% 75% 81% 81% Mar-21 Mar-22 Mar-23 20
Slide 22: Financial Performance – Q4 FY23
Financial Performance – Q4 FY23 REVENUE NET INTEREST INCOME (NII) (In ₹ Mn.) 9,491 4,743 6,571 3,375 5,599 2,954 47.13% 36.09% 2,703 1,268 1,837 931 FY21 FY22 FY23 Q4 FY22 Q4 FY23 FY21 FY22 FY23 Q4 FY22 Q4 FY23 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) 1,566 2,010 1,576 921 29.72% 1,181 23.44% 581 2
Slide 23: Financial Performance – Q4 FY23
Financial Performance – Q4 FY23 RETURN ON AVG. NET WORTH (RONW)** RETURN ON AVG. AUM (ROAUM)* 16.04% 15.25% 14.91% 3.00% 13.64% 2.80% 2.83% 2.71% 11.86% 2.08% FY21 FY22 FY23 Q4FY22 Q4FY23 FY21 FY22 FY23 Q4 FY22 Q4 FY23 ** Networth considered without OCI * Quarterly figures have been annualized. 22
Slide 24: Financial Performance – Q4 FY23
Financial Performance – Q4 FY23 Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)^* OPERATING EXPENSE AS % OF INCOME^* 2.18% 1.96% 1.94% 16.50% 15.99% 14.02% 14.10% 1.59% 10.37% 1.02% FY21 FY22 FY23 Q4 FY22 Q4 FY23 FY21 FY22 FY23 Q4 FY22 Q4 FY23 Efficiently maintaining the quality of asset
Slide 25: Financial Performance – Strongly Capitalized
Financial Performance – Q4 FY23 Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO (CAR) 26.85% 26.35% 3.92 25.25% 3.39 3.04 Mar-21 Mar-22 Mar-23 Mar-21 Mar-22 Mar-23 INTEREST COVERAGE RATIO (ICR) 1.60 1.66 1.66 1.56 1.49 Healthy Coverage FY21 FY22 FY23 Q4FY22 Q4FY23 24
Slide 26: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 1.59% 1.67% 0.35% 1.69% 4.00% 1.25% 0.48% 0.58% 0.49% 0.82% 1.22% 1.13% 2.00% 0.87% 1.87% 1.81% 1.42% 0.00% Mar-21 Mar-22 Mar-23 1 – 30 DPD 31 – 60 DPD 61 – 90 DPD 91 –120 DPD > 120 DPD 25
Slide 27: Credit Quality
Credit Quality (In ₹ Mn.) Mar-23 Mar-22 Particulars Mar-23 Mar-22 Particulars AUM Provision AUM Provision Gross Stage 1 And Stage 2 Assets As % Of On Book Assets 97.98% 97.93% Stage 1 63,108.92 173.85 48,866.98 175.80 Stage 2 1,113.09 150.25 902.64 92.10 Stage 1 & Stage 2 Assets (Standard Assets) Pr
Slide 28: Constantly Maintaining Quality Portfolio
Constantly Maintaining Quality Portfolio 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% 1.94% 2.00% 1.50% 1.74% 1.80% 1.76% 1.70% 1.63% 1.52% 1.60% 1.60% 1.52% 1.00% 0.50% Mar-21 June-21 Sept-21 Dec-21 Mar-2
Slide 29: Financial Statement: FY20 to FY23
Financial Statement: FY20 to FY23 (In ₹ Mn.) PROFIT & LOSS STATEMENT BALANCESHEET STATEMENT Particulars FY 2021 FY 2022 FY2023 Particulars Mar-21 Mar-22 Mar-23 ASSETS Total Revenue 5,599 6,571 9,491 Financial assets 50,869 59,763 75,724 Loans 38,051 45,538 59,102 Expenses 4,010 4,458 6,844 Other fin
Slide 30: Shareholding Profile
SHAREHOLDING PROFILE 29
Slide 31: Marquee FIIs and DIIs Shareholders
Marquee FIIs and DIIs Shareholders Shareholding as on 31st March 2023 Marquee Investors 1.59% Motilal Oswal Private Equity 7.17% Promoter & Promoter Group Axis Mutual Fund 7.40% IDFC Mutual Fund Mutual Funds PGIM India Mutual Fund 10.11% Trust TATA AIA Life Insurance Nippon India AIF Foreign Portfol
Slide 32: MAS Rural Housing & Mortgage Finance Limited (MRHMFL)
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary 31
Slide 33: 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 34: Financial Performance – Q4 FY23
Financial Performance – Q4 FY23 (In ₹ Mn.) ASSETS UNDER MANAGEMENT (AUM) NET WORTH 37.62% 31.57% 851 4,133 3,141 619 2,832 540 Mar-21 Mar-22 Mar-23 Mar-21 Mar-22 Mar-23 BORROWING REVENUE 2,916 438 352 363 2,269 2,220 34.33% 124 92 Mar-21 Mar-22 Mar-23 FY21 FY22 FY23 Q4 FY22 Q4 FY23 33
Slide 35: Financial Performance – Q4 FY23
Financial Performance – Q4 FY23 PROFIT AFTER TAX (PAT) NET INTEREST INCOME (NII) (In ₹ Mn.) 63 212 49 160 141 36.54% 8.62%* 29 59 15 14 43 FY21 FY22 FY23 Q4 FY22 Q4 FY23 FY21 FY22 FY23 Q4 FY22 Q4 FY23 GROSS STAGE 3 ASSETS NET STAGE 3 ASSETS 0.70% 0.65% 0.69% 0.59% 0.59% 0.63% 0.54% 0.54% 0.52% 0.47%
Slide 36: 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 March 2023 ❷ The Company continues to demonstrate its capability of efficient liability management. ❸ Capital adequacy ratio, as on 31st March 2023 is 38.93% agai
Slide 37: Credit Quality
Credit Quality (In ₹ Mn.) Mar-23 Mar-22 Particulars Mar-23 Mar-22 Particulars AUM Provision AUM Provision Stage 1 And Stage 2 Assets As % Of On Book Assets 99.26% 99.35% Stage 1 3,202.04 2.84 2,304.96 2.34 Stage 1 And Stage 2 Assets ( Standard Assets) 0.32% 0.51% Provisioning Stage 2 173.75 8.04 182
Slide 38: Focus on Environment, Social, & Governance (ESG)
FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG) 37
Slide 39: Environmental Stewardship
Environmental Stewardship ❑ The management of MAS Financial Services Limited (MAS) believes in Environmentally Conscious approach for all business & operational related activities. ❑ MAS endeavours to create awareness amongst all the stakeholders on the importance of environment conservation & prote
Slide 40: Enhancing Social Impact (1/2)
Enhancing Social Impact (1/2) SHIKSHA PROTSAHAN “Caring for communities is a way of life” ✓ MAS Financial Services Ltd strongly BLOOD MENSTRUAL HYGIENE believe in giving back to society and DONATION PROGRAMME has always been actively involved in various Corporate Social Responsibility activities. CS
Slide 41: Enhancing Social Impact (2/2)
Enhancing Social Impact (2/2) Shiksha Protsahan Health & Wellness Blood Donation Shiksha Protsahan
Slide 42: Strict Governance Compliance
Strict Governance Compliance ❑ 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 requirements of SEBI and RBI regulations with regard to Corporate Go
Slide 43: Understanding MAS
UNDERSTANDING MAS 42
Slide 44: About MAS
About MAS 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 value on a ver
Slide 45: Team MAS
Team MAS 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 propelling the
Slide 46: Team MAS: Eminent Directors
Team MAS 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 Director Mrs. Darshana S. Pandya is Mr. Balabh
Slide 47: Corporate Advisory Committee
Corporate Advisory Committee 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 of directors a
Slide 48: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network 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 most potent
Slide 49: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network 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 systems and o
Slide 50: Sharpening the Learning Curve (3/3)
Sharpening the Learning Curve (3/3) 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 ₹ 20,000 Crore diligence. cumulativ
Slide 51: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & Risk Management Framework MAS aims to give credit where it is due with the dictum of adherence and adaptability Robust credit assessment Credit assessment process overview by Product Micro-Enterprise Loans SME Loans • Analysis of business potential and en
Slide 52: Major Events and Milestones
Major Events and Milestones Note: As per Calendar Year ✓ 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 debentures of ₹ 400 Mn ✓ Motilal Oswal infuse
Slide 53: Registered Office and Investor Contact
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 079-41106551 ankit_jain@mas.co.in meet_chande@mas.co.in
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