Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q2 FY18 Earnings Presentation
33 slides from Mas Financial Services's earnings presentation, November 2017
Slide 1: Investor Presentation Q2 FY18
INVESTOR Corporate – PRESENTATION Presentation Q2 FY18 REGISTERED OFFICE MAS Financial Services Limited 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009
Slide 2: 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 3: Table of Content
Table of Content Company Overview 4 Mission, Vision and Belief 5 Milestones 6 Product Offerings 7 AUM & PAT 9 Capital Infusion 10 Key Performance Highlights – H1 FY18 vs H1 FY17 11 Key Performance Highlights – Q2 FY18 vs Q2 FY17 12 Financial Performance Trends – Q2 FY18 13 Retail Presence & Distribu
Slide 4: Company Overview
Company Overview SPECAILISED IN RETAIL LENDING SINCE 20 YEARS Diversified Product Portfolio Strong Retail Presence & Wide Distribution Network 6 states and Sourcing Intermediaries 5,00,000+ NCT of Delhi Micro-Enterprise loans(MEL) SME loans Active loan accounts 316 328 3,263 Customer locations 105 N
Slide 5: Vision, Mission & Belief
Vision, Mission & Belief VISION To be one of the most efficient distributors of financial services and create value on a very large scale. MISSION To constantly endeavour, to attain excellence and create a very wide Financial distribution network and to be catalyst; in providing the most efficient f
Slide 6: Major events and milestones in the history
Major events and milestones in the history 2018 Listing of Equity Shares on Bombay Stock Exchange & National Stock Exchange 2017 AUM crossed INR 30 Bn Bank loan rating upgraded to “IND A” with Stable outlook 2016 Raised Subordinate Debentures of INR 400 Mn Raised Subordinate Debentures of INR 200 Mn
Slide 7: 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 SME Loans Loans of up to INR 300,000 to Micro-Enterprises who Loans of up to INR 50 mn to SMEs who primarily i
Slide 8: Recent Growth in Overall AUM
Recent Growth in Overall AUM MAS’ has exhibited steady growth in AUM over the years AUM by Product Category (INR Mn) Segment growth YOY Sept-16 vs Sept-17 1,308 Commercial 3,454 Vehicle loans 1,221 2,854 1,359 (3.74%) 2,469 9,050 2-Wheeler 1,439 7,638 loans 2,576 5,240 1,643 4,290 39.87% 2,397 SME l
Slide 9: Consistent Growth in AUM and PAT
Consistent Growth in AUM and PAT Asset Under Management (AUM) In INR Mn 31,561 25,650 20,052 13,910 10,123 6,909 3,884 5,118 1,510 2,312 2,597 2,682 20 Mar-1996 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Profit After Tax (PAT) 674 534 390 311 259 157 183 132
Slide 10: Capital Infusion
CAPITAL INFUSION Growth Funded Mainly By Internal Accrual, Raised Capital Very Judiciously NAME OF PRIMARY/ INVESTMENT STATUS AS ON 30 INSTRUMENT AMOUNT INR Mn INVESTOR SECONDARY YEAR SEPTEMBER 2017 Bellwether Redeemable Preference Shares Primary 2006 65.00 Redeemed Microfinance ICICI Ventures Redee
Slide 11: Key Performance Highlights – H1 FY18 vs H1 FY17
Key Performance Highlights – H1 FY18 vs H1 FY17 AUM PAT ROTA* NET NPA COB* ICR H1 FY18 INR 34,740 Mn INR 481 Mn 4.36% 0.96% 8.94% 1.96 times 26% 42% 20% 7% 5% 17% H1 FY17 INR 27,665 Mn INR 340 Mn 3.64% 1.03% 9.40% 1.67 times ABBREVIATIONS AUM ASSET UNDER MANAGEMENT PAT PROFIT AFTER TAX ROTA RETURN O
Slide 12: Key Performance Highlights – Q2 FY18 vs Q2 FY17
Key Performance Highlights – Q2 FY18 vs Q2 FY17 AUM PAT ROTA* NET NPA COB* ICR Q2 FY18 INR 34,740 Mn INR 251 Mn 4.29% 0.96% 8.95% 1.97 times 26% 32% 8% 7% 5% 13% Q2 FY17 INR 27,665 Mn INR 190 Mn 3.99% 1.03% 9.43% 1.74 times ABBREVIATIONS AUM ASSET UNDER MANAGEMENT PAT PROFIT AFTER TAX ROTA RETURN ON
Slide 13: Financial Performance Trends – Q2 FY18
Financial Performance Trends – Q2 FY18 In INR Mn Robust Performance ASSETS UNDER MANAGEMENT (AUM) NET WORTH 4,580# 34,740 31,561 3,769# 27,665 25,650 2,658 20,052 2,279 1,908 Mar-15 Mar-16 Mar-17 Sept-16 Sept-17 Mar-15 Mar-16 Mar-17 Sep-16 Sep-17 BORROWING ON & OFF BOOK AUM 17,852 14,855 15,129 15,5
Slide 14: Financial Performance Trends – Q2 FY18
Financial Performance Trends – Q2 FY18 In INR Mn Consistent Rise in … REVENUE NET INTEREST INCOME (NII) 1,902 3,415 2,939 1,599 2,259 1,204 665 1,061 482 866 FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 PROFIT BEFORE TAX (PBT) PROFIT AFTER TAX (PAT) 1,031 674 817 534 582 390 3
Slide 15: Financial Performance Trends – Q2 FY18
Financial Performance Trends – Q2 FY18 Focus on Efficiency RETURN ON AVG. TOTAL ASSET (ROTA)* RETURN ON AVG. AUM (ROAUM)* 4.29% 3.99% 2.97% 3.51% 2.82% 3.05% 3.24% 2.30% 2.34% 2.36% FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 RETURN ON AVG. NET WORTH (RONW)* OPERATING EXPENSE
Slide 16: Financial Performance Trends – Q2 FY18
Financial Performance Trends – Q2 FY18 OPERATING EXPENSE AS % OF NII* COST OF BORROWING (COB)* 9.03% 9.22% 9.44% 9.43% 8.95% 35.60% 34.38% 31.75% 29.56% 26.69% FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 Efficiently maintaining the quality of assets GROSS NPA NET NPA 1.18% 1.
Slide 17: Financial Performance Trends – Q2 FY18
Financial Performance Trends – Q2 FY18 In INR Mn Adequately Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO (CAR) 6.36 6.52 5.86 23.81% 22.94% 19.92% 4.01 17.13% 18.36% 3.90 Mar-15 Mar-16 Mar-17 Sept-16 Sept-17 Mar-15 Mar-16 Mar-17 Sept-16 Sept-17 Healthy Coverage Enhancing Shareholders
Slide 18: Retail Presence and Distribution
Retail Presence and Distribution MAS have 74 branches across 6 states and NCT of Delhi 500,000+ active customers across 3,263 locations in Rural, semi urban and urban locations Rajasthan Delhi NCT • Branch – 1 • Branches – 5 branches in Jaipur, Ajmer, Jodhpur, Bikaner and Udaipur Gujarat • Branches
Slide 19: Diverse base of channel partners along with regional NBFCs provide wide distribution
Diverse base of channel partners along with regional NBFCs provide wide distribution Penetrate existing markets, enter newer markets, maintain optimal growth, profitability & quality Direct Distribution Network and Partnerships with Financial Relationships Institutions Presence in the high growth ma
Slide 20: Robust and Comprehensive Credit Assessment and Risk Management Framework
Robust and Comprehensive Credit Assessment and 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 Analysis of business potential and end use, c
Slide 21: Quality of the portfolio: NPA Details
Quality of the portfolio : Consistently maintained Catalyst in growth of Entrepreneurs, not creating just borrowers NPA DETAILS* 1.50% 1.18% 1.20% 1.04% 1.08% 1.09% 1.00% 1.03% 0.93% 0.95% 0.96% 0.85% 0.50% 0.00% Mar-15 Mar-16 Mar-17 Sept-16 Sept-17 GROSS NPA NET NPA *NPA classification criteria For
Slide 22: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality ASSET UNDER MANAGEMENT- DPD 8.00% 0.49% 6.00% 0.68% 0.38% 0.86% 0.49% 0.72% 0.89% 0.58% 1.22% 1.14% 0.59% 0.63% 0.91% 4.00% 0.71% 0.65% 1.52% 1.11% 1.23% 1.41% 0.98% 2.00% 2.79% 2.86% 2.97% 2.41% 2.38% 0.00% Mar-15 Mar-16 Mar-17 Sept-16 Sept-17 1 – 30 DPD 31 –
Slide 23: Eminent Board of Directors
Eminent Board of Directors Extensive industry experience and deep domain knowledge of financial services sector Mr. Kamlesh Chimanlal Gandhi, aged 51 years, is the Founder, Chairman and Managing Director of MAS since inception. He visualized the opportunities in the retail financial services ver
Slide 24: Eminent Board of Directors
Eminent Board of Directors Extensive industry experience and deep domain knowledge of financial services sector He has been associated with the Company as a Director since November 1995 and as an independent Director since April 2014 He is a management graduate with two decades of experience in
Slide 25: Financial Statement: FY15 – H1 FY18
Financial Statement: FY15 – H1 FY18 PROFIT & LOSS STATEMENT INR Mn FY 2015 FY 2016 FY 2017 H1 FY 2017 H1 FY 2018 Total Revenue 2259.07 2939.06 3415.17 1,700.98 2,038.94 Expenses Finance Costs 1055.43 1339.86 1513.15 773.43 771.02 Operating Expense 428.54 549.87 603.94 284.91 337.21 Provisions and Lo
Slide 26: MAS Rural Housing & Mortgage Finance Limited (MRHMFL) – Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) – Subsidiary 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 incorpo
Slide 27: Financial Performance Trends – Q2 FY18 MRHMFL
Financial Performance Trends – Q2 FY18 MRHMFL In INR Mn ASSETS UNDER MANAGEMENT (AUM) NET WORTH 1,888 1,764 300 308 1,605 289 260 1,341 228 938 Mar-15 Mar-16 Mar-17 Sept-16 Sept-17 Mar-15 Mar-16 Mar-17 Sep-16 Sep-17 BORROWING GROSS NPA & NET NPA 0.41% 0.42% 1,469 1,476 1,242 0.34% 0.35% 0.32% 1,144
Slide 28: Financial Performance Trends – Q2 FY18 MRHMFL
Financial Performance Trends – Q2 FY18 MRHMFL In INR Mn REVENUE NET INTEREST INCOME (NII) 233 103 157 74 118 55 57 66 28 26 FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 PROFIT BEFORE TAX PROFIT AFTER TAX 29 29 20 19 22 15 8 5 6 4 FY-15 FY-16 FY-17 Q2 FY17 Q2 FY18 FY-15 FY-16 F
Slide 29: IPO – Stupendous Subscription, Super Duper Listing
IPO – “ Stupendous Subscription……… Super duper Listing…….” Total IPO size of 4600.42 Mn Offer Size Fresh Issue of Equity Shares aggregating up to INR 2,330.0 Mn Offer for sale by investors FMO, DEG and Sarva Capital of worth INR 2,270.42 Mn 3,990,422 Mn shares worth INR 1,350 Mn was issued as
Slide 30: IPO – Stupendous Subscription, Super Duper Listing
IPO – “ Stupendous Subscription……… Super Duper Listing…….” No. of shares No. of shares No. of Sr. No. Category offered/reserved bid for times Subscription Qualified Institutional Buyers 1 1987028 294737952 148.33 (QIBs) 2 Non Institutional Investors 1490270 564117088 378.53 3 Retail Individual Inves
Slide 31: Marquee Anchor Investors
Marquee Anchor Investors NAME OF THE ANCHOR INVESTORS NAME OF THE ANCHOR INVESTORS THE NOMURA TRUST AND BANKING CO LIMITED AS TRUSTEE OF DSP BLACKROCK BALANCED FUND NITM ASIA OPEN DSP BLACKROCK EQUITY FUND HDFC TRUSTEE COMPANY LTD - HDFC EQUITY SAVING FUND RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANC
Slide 32: Glossary
Glossary AUM Assets Under Management Bn Billion CCPS Compulsorily Convertible Preference Shares COB Cost of Borrowing CRAR Capital To Risk Assets Ratio DPD Days Past Due FIs Financial Institutions ICR Interest Coverage Ratio IPO Initial Public Offer MEL Micro Enterprise Loans Mn Million NBFC Non Ban
Slide 33: Best Wishes
BEST WISHES INVESTOR CONTACT Name: Ankit Jain Designation: VP- Finance Contact No.: 079-30016682 Email ID: ankit_jain@mas.co.in
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