Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Investor Presentation (September 2023)
37 slides from Mas Financial Services's investor presentation, Sep 20, 2023
Slide 1: Exchange filing cover letter
MFSL/SEC/EQ/2023/78 September 20, 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 Complex Bandra (East) Mumbai – 400051 Scrip Code: 540749, 947381 T
Slide 2: Investor Presentation 2022-23
INVESTOR PRESENTATION 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: MAS at a Glance
MAS at a Glance MAS Financial Services was established in 1995 with an objective: “To address the financial needs of the underserved segments of the country” 25+ Diversified Product Portfolio Years of Endeavours Micro Enterprise Loans SME Loans ₹84,178 Mn 7 155 Standalone AUM States and NCR of Delhi
Slide 5: Strong Distribution Network
Strong Distribution Network MAS has steadily ventured into adjacent geographies 1 Delhi 25 Rajasthan 155 60 33 Madhya Pradesh 1 Branches Gujarat Chhattisgarh Maharashtra 28 Pan India Network Presence through 155 MAS Financial Services 5 NBFC Partners Karnataka 2 Tamil Nadu 4 Map not to scale. For Il
Slide 6: Growth
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO
Slide 7: Journey of 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 10,123 13,910 2,682 3,884 5,118 6,909 20 1,510 2,312 2,597 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q 104Q 108Q 112Q Profit After Tax (PAT) (In ₹ Mn) 2,0
Slide 8: Growing Consistently and Steadily
Growing Consistently and Steadily - Our Growth Journey of Last 16 Years Since Our First Capital Raise… Despite various micro and macro headwinds Track record of high-quality portfolio with Net Maintained healthy return on assets including demonetisation, GST, NBFC Stage 3 Assets below 2% over the pe
Slide 9: Best-in-Class Asset Quality Across Cycles
Best-in-Class Asset Quality Across Cycles and Resilience Through Systematic Shocks Catalyst in growth of entrepreneurs, not creating just borrowers GROSS STAGE 3 ASSETS NET STAGE 3 ASSETS 7.2% 2nd Wave 6.4% 1st Wave 2.35% 2.30% 2.28% 2.27% 2.26% 2.23% 2.21% 2.15% 2.13% 1.94% 1.70% 1.56% 1.39% 1.39%
Slide 10: Strong Fundamentals
Strong Fundamentals
Slide 11: Proven Distribution Model
Proven Distribution Model Established a uniquely designed twin distribution engine (Direct + NBFC Partners) Direct Channel Retail Asset Channel Book created through partner NBFCs Book Direct onboarding of retail borrowers Creation Share in 63% 37% AUM 155 branches across 7 states and 1 in NCR of Del
Slide 12: AUM – Distribution Channel Wise
Asset Under Management – Distribution Channel Wise Increasing share of Direct Retail Distribution (%) 37.6 37.2 48.5 45.3 58.5 62.4 62.8 51.5 54.7 41.5 MAS Financial Services Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 (₹ Mn) AUM 53,724 62,468 80,926 66,839 84,178 Retail Asset Channel Direct Retail Distribut
Slide 13: Leveraging Technology
Leveraging Technology MAS is integrating technology across all verticals of its operations Collaboration with 25+ APIs, enabling authentic data sourcing Origination Decisioning Operations Disbursement & Collection • Centralised onboarding and OTP • Pre-set rule engines determine credit • Remote and
Slide 14: Diversified Product Offerings
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 Two-Wheeler Loans Commercial Salaried Vehicle Loans Personal Loans 40,212 Mn 30,748 Mn 5,709 Mn 4,484 Mn
Slide 15: Strong Liability Management
Strong Liability Management The composition of our The Company withstood the liability mix ensures litmus test very successfully Sources of fund as on June 30, 2023 (%) healthy ALM and well during this most challenging diversified resource mix. period. – A testimony to its very efficient liability m
Slide 16: Standalone Financial Review (Q1FY24)
Standalone Financial Review (Q1FY24)
Slide 17: Key Highlights – Q1 FY24
Key Highlights – Q1 FY24 Asset Under Management (AUM) Profit After Tax (PAT) Return on Avg. Net Worth* ₹84,178 Mn 25.94% (June-22: ₹66,839 Mn) ₹573 Mn 24.16% (Q1 FY23: ₹461 Mn) 15.94% Return on Avg. Balance Sheet Assets* Net Interest Income (NII) Cost of Borrowing* (COB) 2.96% 1,373 Mn 30.83% 89bps
Slide 18: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 Assets Under Management (AUM) (In ₹ Mn) Net Worth (In ₹ Mn) Return on Avg. Aum (RoAUM)* 84,178 15,057 15,779 2.80% 2.85% 80,926 2.71% 2.77% 13,406 13,808 66,839 12,050 2.08% 62,468 53,724 Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 Mar-21 Mar-22 Mar-23 Jun-22 Jun-23 FY21 FY22
Slide 19: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 Revenue (In ₹ Mn) Net Interest Income (NII) (In ₹ Mn) 9,491 4,743 6,571 3,375 5,599 2,954 2,801 1,373 1,978 1,050 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Operating Expense (In ₹ Mn) Profit After Tax (PAT) (In ₹ Mn) 1,566 2,010 1,576 921 1,181 MAS
Slide 20: MAS Rural Housing & Mortgage Finance Limited Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
Slide 21: About MRHMFL
About MRHMFL MAS is targeting affordable housing finance segment through its subsidiary MAS Rural Housing & Mortgage Finance MRHMFL provides loans for purchase of MRHMFL provides housing loans in With its continued focus on the rural and Limited (“MAS Housing” or MRHMFL) is new and old houses, const
Slide 22: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 Assets Under Management (AUM) (In ₹ Mn) Net Worth (In ₹ Mn) 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 MAS Financial Services 136 8
Slide 23: Financial Performance – Q1 FY24
Financial Performance – Q1 FY24 Profit After Tax (PAT) Net Interest Income (NII) (In ₹ Mn) (In ₹ Mn) 63 212 49 160 141 29 66 16 40 10 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% MAS Financial Services 0.54% 0.54% 0.52% 0.50% 0.37%
Slide 24: Liability Management
Liability Management Sources of Fund as on 30th June 2023 The composition of our liability mix The Company continues to (%) ensures healthy ALM and well demonstrate its capability of efficient diverse resource mix. liability management. NHB Refinance Capital adequacy ratio, as on 30th Around 65% of
Slide 25: Understanding MAS
Understanding MAS
Slide 26: Visionary Leadership
Visionary Leadership Experienced Promoters Mr. Kamlesh Chimanlal Late Mr. Mukesh Gandhi, 56, is the Chimanlal Gandhi, a Co- One of the founder and former Founder, Chairman, and Managing Director Director (Finance) at highest promoter MAS Financial of MAS with over two Services Limited, shareholding
Slide 27: Governance by an Independent Board
Governance by an Independent Board; Guidance from Industry Leaders Corporate Advisory Committee Mr. Bala Bhaskaran Mr. Chetan Ramniklal Shah Mr. Umesh Rajanikant Shah Dr. Rajiv Kumar Mr. TT Srinivasaraghavan Independent Director Independent Director Independent Director Former Vice Chairman of Niti
Slide 28: Robust Risk Management
Robust Risk Management Portfolio & Asset Quality Policies Process • MAS has well diversified products • MAS has comprehensive policies • MAS endeavours to have processes to portfolio and wide geographical presence framework for all the critical functions follow the laid down core policies. (through
Slide 29: Robust Credit Assessment
Robust Credit Assessment MAS aims to give credit where it is due with the dictum of adherence and adaptability Comprehensive Credit Assessment Credit Assessment Process Overview by Product Business loans require A assessment of business viability, cash flow, and profitability Income Profile Salaried
Slide 30: Unique and Robust Distribution Network Through NBFC Partners
Unique and Robust Distribution Network Through NBFC Partners Aim & Our Understanding Impact Efficient last mile delivery of credit across Value chain approach has proven to be the MAS NBFCs its product range namely MEL, SME, 2 most potent one to solve informality • Widens its network while maintaini
Slide 31: Sharpening the Learning Curve
Sharpening the Learning Curve Our proven track record of more than ₹21,000 cr cumulative disbursement through NBFC partners with total loss less than 0.5% over a decade across various tough periods assures our confidence on the distribution model. Our Learning Curve is Further Strengthened by Credit
Slide 32: Way Forward
Way Forward
Slide 33: Key Growth Strategies for Consistent Growth
Key Growth Strategies for Consistent Growth Focus towards direct lending Growth Drivers Aim to grow AUM by Share of business from direct Housing, SME and Wheels 20% to 25% over the distribution will increase while portfolio to be key growth medium to long-term NBFC partnerships business will drivers
Slide 34: Enablers for Consistent Growth
Enablers for Consistent Growth Successful Track Record Highly Capitalised Strong Portfolio Quality • Successfully withstood multiple • Highly capitalised for future growth. • Consistent track record of high-quality headwinds over the years Sufficient capital to continue the portfolio with Net Stage
Slide 35: Shareholding Profile
Shareholding Profile
Slide 36: Marquee FIIs and DIIs Shareholders
Marquee FIIs and DIIs Shareholders Shareholding as on 30th June 2023 Marquee Investors (%) Others (Including AIFs, Fis, Banks & Individuals) Foreign Portfolio Investor 7.35 Trust 1.59 7.40 Mutual Fund 9.93 MAS Financial Services 73.73 Promoter and Promoter Group 35
Slide 37: Best Wishes
MAS Financial Services Limited Registered Office 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009 www.mas.co.in Investor Contact Best Wishes Mr. Ankit Jain Chief Financial Officer 079-41106682 ankit_jain@mas.co.in Mr. Meet Chande Investor Relations Manager 079-41106551 meet_chande@ma
MAS Financial Services — Investor Presentation (September 2023) on 6ix