Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — Q2 FY24 Earnings Presentation
37 slides from Aptus Value Housing Finance India's earnings presentation, November 2023
Slide 1: Investor Presentation | Q2 FY24
Aptus Value Housing Finance India Limited Investor Presentation | Q2 FY24 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”) which have been prepared by Aptus Value Housing Finance India Limited (the “Company”) have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscri
Slide 3: Background
Background Commenced Operations in 2010 - 14th successful year of operations Regulated by RBI and supervised by NHB Run by professional management team backed by Presence in 250 locations strong Founder Promoter and marquee investors 3
Slide 4: Key Strengths
Key Strengths 1 Presence in Large Underpenetrated Market 2 Leader in Attractive South Market 3 Good Asset Quality 4 Industry Leading Profitability 5 Good Governance, Management and Alignment 4
Slide 5: Management Update
Management Update Diversified Income stream from HL and Non-HL Geographic expansion:- deeper penetration in existing markets and contiguous expansion to newer markets Tech focused, Data driven fully connected operations including centralized underwriting using AI/ML driven credit scoring model. Stre
Slide 6: Journey – over the years
Journey – over the years AUM Rs. Crores CAGR - 32% 50K + Customers 1 Lakh + 7604 (#) (5 Years) Customers Listed 6738 Equity From Marquee 5180 Investors 4068 Expansion 100th Branch to Four AUM Rs.100 Cr States 3183 2247 1st PE Equity 1414 846 519 252 358 29 86 159 0 2010 2011 2012 2013 2014 2015 2016
Slide 7: Financial Snapshot – 5 Years
Financial Snapshot – 5 Years Rs in Crores FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 (H1) CAGR No. of Branches 143 175 190 208 231 250 No. of Customers 30,749 43,987 58,069 83,565 1,07,146 1,19,323 Disbursements 1,089 1,271 1,298 1,641 2,395 1,391 AUM 2,247 3,179 4,068 5,180 6,738 7,604 32% Total Income 33
Slide 8: Snapshot - September 2023
Snapshot - September 2023 Assets under Management (AUM) Disbursement Gross Stage 3 Rs. 7,604 Cr Rs. 1,391 Cr 1.19 % +28% +7% +23% +15% -28 bps -10 bps NIM Opex to Assets Profit After Tax 13.34% 2.71 % Rs. 290 Cr Consistently maintained -06 bps +16 bps +20 % +4% Return on Assets Return on Equity YoY
Slide 9: Diversified Income Stream With Niche Customer Focus
Diversified Income Stream With Niche Customer Focus Secured Portfolio – Home Loans (HL) / Small Business Loans (SBL) HFC NBFC Small Business Loan & Non-HL – 100% LIG Customers 79% Self Employed Borrowers 72% AUM – Rs 1512 Cr Consolidated Rural Focus 76% Avg Ticket Size < Rs.10 lacs >93% 9
Slide 10: 100% In-House Operations
100% In-House Operations Fully In-House Team… …Leading to Desired Business Outcomes Pricing Power 1,641 279 Business Origination Credit Reduced TAT 236 492 Low Takeover Legal & technical Collection Reduced Operational Risk 152 HO / Operations 10
Slide 11: Omni Channel Lead Generation
Omni Channel Lead Generation ✓Existing customers can refer leads ✓Unifying construction ECO System through customer service APP ✓Referral app to generate leads Existing Customer Construction Referrals ecosystem 5.72 % 7.28 % ✓Lead generation through social media Campaigns & Digital marketing ✓Our sa
Slide 12: Robust Underwriting, Monitoring and Collections Process
Robust Underwriting, Monitoring and Collections Process 100% In-House Leveraging Stringent Credit Robust Collection Sourcing Technology Underwriting Management System Lead Generation Cash flow 15-24 months Digital Onboarding through assessment Monitoring early and KYC • Cust app,Ref app Pre & Post d
Slide 13: Information & Technology: Key Enabler of Growth
Information & Technology : Key Enabler of Growth Lending Software Customer Relationship & Human Resources End-to-end software Service Human resources management solution system application Automated CRM and customer service requests 1 3 5 2 4 6 Customer Onboarding Business Intelligence & Sales app,
Slide 14: Scalable and Robust Digital Landscape
Scalable and Robust Digital Landscape ✓Mobile App for customer on-boarding, Credit ✓ Time Series Forecast Using Verification, Technical Valuation, Collections & Statistical Model and Tensor Flow for Customer Service Bounce Prediction. ✓Digital – KYC, Account Aggregator & E-nach ✓ Machine Learning Mo
Slide 15: Risk and Data Science Backed Centralized Underwriting
Risk and Data Science Backed Centralized Underwriting Tech - Centralized Risk Management Intervention Processing ✓50 + key data ✓Tech enabled ✓Consistency in points are collected evaluation of underwriting with for Customer customers expertise in state- Loans approved Profile Analysis wise analysis
Slide 16: Scalability
Scalability Branch Productivity as on September 30, 2023 AUM per Branch (Rs. Cr) # of Branches Tamil Andhra Nadu Telangana Karnataka Pradesh 41 34 175 Per Capita GDP Compared to national 1.8x 1.1x 1.5x 1.5x average of INR 180k GDP Growth 13% 8% 7% India average: 6.1% 9% % of AUM as on No. of State F
Slide 17: Strong ESG / Governance
Strong ESG / Governance Focus on financial Improving Living Strong Corporate Paperless inclusion Standards Governance Initiative Employment Diversified Experience Digital Transformations 79% LIG in rural / semi-urban areas, Of Board Members across academic KYC to e-KYC where local talents are and Pr
Slide 18: Performance Highlights (Quarterly)
Performance Highlights (Quarterly) Disbursement(Rs. Cr) AUM (Rs. Cr) Gross NPA(%) 7604 1.47% 745 7123 1.29% 646 5932 1.19% 604 Q2 FY 23 Q1 FY 24 Q2 FY 24 Q2 FY 23 Q1 FY 24 Q2 FY 24 Q2 FY 23 Q1 FY 24 Q2 FY 24 Growth QoQ 15% Growth QoQ 7% PAT (Rs. Cr) 8.71% ROA (%) ROE (%) 148 16.93% 17.00% 142 8.21%
Slide 19: Performance Highlights (Year on Year)
Performance Highlights (Year on Year) Disbursement (Rs. Cr) AUM (Rs. Cr) Gross NPA (%) 1391 7604 1.47% 1129 5932 1.19% H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Growth YoY 23% Growth YoY 28% PAT (Rs. Cr) RoA (%) ROE (%) 17.00% 8.71% 290 15.83% 8.10% 242 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23
Slide 20: Consistent Spreads
Consistent Spreads Yields / Cost of Borrowings (%) 17.20% 17.03% 17.00% 17.20% 16.85% 16.90% 17.00% 17.15% 17.20% 16.89% 9.80% 8.10% 8.41% 7.90% 8.10% 8.30% 8.41% 8.43% 7.74% 7.70% FY 2 0 FY 2 1 FY 2 2 FY 2 3 FY2 4 (H1 ) Q 2 FY2 3 Q 3 FY2 3 Q 4 FY2 3 Q 1 FY2 4 Q 2 FY2 4 Spread (%) 9.15% 9.15% 9.00%
Slide 21: Opex and ROA
Opex and ROA Opex (%) 3.40% 2.78% 2.75% 2.71% 2.77% 2.75% 2.75% 2.71% 2.53% 2.55% FY 20 FY 21 FY 22 FY 23 FY 24 (H1) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 ROA (%) 8.71% 8.53% 8.44% 8.44% 8.21% 8.10% 8.00% 8.10% 7.37% 7.01% FY 20 FY 21 FY 22 FY 23 FY 24 (H1) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 21
Slide 22: Asset Quality
Asset Quality PCR – 89 % Gross NPA (%) Net NPA (%) 1.47% 1.44% 1.29% 1.15% 1.19% 1.10% 1.08% 0.97% 0.86% 0.89% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Non Cash Collections Collection efficiency (%) 30 + DPD (%) >95% 102.90% 100.21% 100.31% 99.52% 99.72% 6.50% 6.27% 6.27
Slide 23: Provision for Contingencies (ECL)
Provision for Contingencies (ECL) Rs in lakhs Consolidated 30-Sep-23 30-Jun-23 31-Mar-23 31-Mar-22 Gross Stage 3 9,061 9,224 7,767 6,184 % portfolio in Stage 3 1.19% 1.29% 1.15% 1.19% ECL Provision Stage 3 2,265 2,306 1,942 1,546 Net Stage 3 6,796 6,919 5,825 4,638 Provision coverage ratio (PCR) 25.
Slide 24: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile 20+ Lender Relationships Diversified and Balanced Funding Mix No Exposure to Short term loan incl CPs Sources of funds mix(%) DFI Others, NCDs, 7% 5% Refinance NHB, 26% Private Sector Banks, 62% Avg. Tenure of FY 24 (H1) FY23 FY22 Borrowings (months) 84.1
Slide 25: ALM Surplus
ALM Surplus Position as on 30 Sep 2023 (Rs.Cr) Surplus < 3 months 417 916 499 3-6 months 384 627 243 6m to 1 year 744 413 1157 1 to 3 years 2451 974 3425 3 to 5 years 1382 3150 1768 5 to 7 years 546 2055 2601 7 to 10 years 455 1858 2313 92 >10 years 571 479 Outflows Inflows 25
Slide 26: Fixed Vs Floating (Assets Vs Liabilities)
Fixed Vs Floating (Assets Vs Liabilities) Loan Assets & Borrowings (₹ Cr) As on Sep-23 Borrowings - Fixed Vs. Floating 7,604 7,604 21.73% 24.06% 61% 62% 58% 57% 59% 58% 58% 33.23% 78.27% 42% 43% 41% 42% 42% 39% 38% 42.71% Loan Assets Borrowings/Equity Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23
Slide 27: Comfortable liquidity position/Capital Adequacy
Comfortable liquidity position/Capital Adequacy A. Liquidity Rs in Crores Particulars 30-Sep-23 Unecumbered Cash & Cash equivalents 384 Unavailed Sanctions from Banks 290 Unavailed Sanctions from NHB 300 Total 974 FY 24 FY 24 Particulars Q3 Q4 Opening Liquidity 974 1,141 * Rs.1,323 Crores Surplus Ad
Slide 28: Key Growth Strategies
Key Growth Strategies Continued Focus on • Ticket Size in INR 0.5 – 1.5mn range in HL and SME Existing Segment & • Large headroom in new to credit, retail segment strengthen focus on SME • Different templates of customer profiles to increase business while managing risks Deeper Penetration in Existi
Slide 29: Experienced and Well Diversified Board
Experienced and Well Diversified Board Chairman Non-Executive Nominee Directors Non-Executive Director M. Anandan Sumir Chadha KP Balaraj Shailesh J. Mehta Executive Chairman Nominee Director - WestBridge Nominee Director - WestBridge Partner, Granite Hill Capital Partners Non-Executive Independent
Slide 30: Stable Management
Stable Management Balaji P Managing Director Several years of experience in financial Services including HFC C.T. Manoharan John Vijayan Chief Business Officer Chief Financial Officer Rich experience in housing finance industry Experience in Financial Services in the across sales, channel and distri
Slide 31: Diversified Shareholding
Diversified Shareholding Shareholding Pattern Top Institutional Shareholders Key Investors Public & Others 6.76% Founder Promoter – M.Anandan Investor Details % of holding 24.99% Malabar 8.31 Steadview 3.18 Ward Ferry 3.08 DII 3.05% Capital research 2.85 Aberdeen 2.77 Sequoia 2.61 Vanguard 1.44 Gene
Slide 32: Annexures
Annexures 32
Slide 33: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs in Crores FY 23 FY 24 FY 24 FY 24 FY 23 Growth % Particulars Full Year Q2 Q1 H1 H1 H1-o-H1 1,058.40 Interest Income 324.63 296.81 621.44 490.47 27% 70.60 Fee and Other Income 19.83 18.06 37.89 35.34 (275.91) Interest Expenses (96.14) (84.74) (180.88) (
Slide 34: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs in Crores Mar-23 Particulars Sep-23 Sep-22 Source of Funds 99.61 Share capital 99.74 99.60 3,239.72 Reserves & surplus 3,440.21 3,075.21 3,339.33 Net worth 3,539.95 3,174.81 3,786.02 Borrowings 4,316.83 3,732.81 50.70 Other Liabilities & Provisi
Slide 35: RoA Tree (based on Avg Loan Book)
RoA Tree (based on Avg Loan Book) (%) FY 24 FY 23 Particulars H1 H1 Return on Assets (RoA)* Revenue from Operations 17.78% 17.92% Other Income 0.61% 0.76% Total Revenue 18.39% 18.68% Interest Expenses (5.04%) (4.36%) NIM 13.34% 14.32% ECL Provisions / Write-Off's (0.22%) (0.64%) Operating Expenses (
Slide 36: RoA Tree (based on Avg Total Assets)
RoA Tree (based on Avg Total Assets) (%) FY 24 FY 23 Particulars H1 H1 Return on Assets (RoA)* Revenue from Operations 16.92% 15.91% Other Income 0.58% 0.73% Total Revenue 17.50% 16.64% Interest Expenses (4.80%) (3.83%) NIM 12.70% 12.81% ECL Provisions / Write-Off's (0.21%) (0.59%) Operating Expense
Slide 37: Thank You
Thank You 8B, Doshi Towers, 205, Poonamallee High Rd, Kilpauk, Chennai – 600010., Phone: 044-45650000, E-Mail: investorrelations@aptusindia.com, Website: www.aptusindia.com 37
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