Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — Q1 FY25 Earnings Presentation
39 slides from Aptus Value Housing Finance India's earnings presentation, Aug 1, 2024
Slide 1: Exchange filing cover letter
Ref No: APTUS/03-AUG/2024-25 August 01, 2024 To, To, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai- 400001 Bandra (E) Scrip Code: 543335 Mumbai – 400 051 Scrip Symbol: APTUS Dear Sir/Madam, Sub:
Slide 2: Aptus Value Housing Finance India Limited Investor Presentation Q1 FY25
1 Aptus Value Housing Finance India Limited Investor Presentation | Q1 FY25
Slide 3: 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 4: Background
Background Commenced Operations in 2010 Regulated by RBI and In 15th year of operations supervised by NHB Run by professional management team backed by strong Founder Presence in 267 locations Promoter and marquee investors 3
Slide 5: Key Strengths
Key Strengths Presence in Large Underpenetrated Market Leader in Attractive Good Asset South Market Quality Good Governance, Industry Leading Management and Profitability Alignment 4
Slide 6: Management Update
Management Update Geographic expansion: deeper Diversified Income stream from penetration in existing markets and HL and SBL contiguous expansion to newer markets in Maharashtra and Odisha A Mobile-First Fully Digital LOS : Strengthening of Middle Management in Business and Support functions Tech fo
Slide 7: Journey Over The Years
Journey Over The Years 1 Lakh + AUM Rs. Crores Customers 50K + Customers CAGR Listed 9,072 (#) 8,722 30% Equity From Marquee Investors Expansion to Four States 5 YEARS 6,738 100th Branch 1st PE AUM 5,180 Equity Rs. 100 Cr 4,086 Profitable 3,183 Incorporated 2,247 1,414 846 358 519 86 159 252 0 29 FY
Slide 8: Strong Growth Runway; RoE to remain best in class
Strong Growth Runway; RoE to remain best in class Rs in Crores FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 (Q1) CAGR # No. of Branches 175 190 208 231 262 267 No. of Customers 43,987 58,069 83,565 1,07,146 1,33,499 1,37,792 Disbursements 1,271 1,298 1,641 2,395 3,127 675 Loan Book * 3,179 4,068 5,180 6,738
Slide 9: Snapshot: June 2024
Snapshot: June 2024 YoY QoQ Assets under Disbursement * Gross Stage 3 NIM Management (AUM) INR 9,072 Cr INR 675 Cr 1.30% 12.80% +27% +4% +4% + 01 + 23 Healthy NIM bps bps maintained Opex to Assets Profit After Tax Return on Assets Return on Equity 2.67% INR 172 Cr 7.73% 18.13% +12 -03 Consistently I
Slide 10: Diversified Income Stream With Niche Customer Focus
Diversified Income Stream With Niche Customer Focus Secured Portfolio – Home Loans (HL) / Small Business Loans (SBL) 4% 4% Home Loans Home Loans 2% 20% Quasi Home Loans Quasi Home Small 2% 22% Insurance Loans Loans Business Insurance Loans Loans & Top up Loans Non-HLs 60% 16% 70% Small Business Top
Slide 11: Leading to Desired Business Outcomes
100% In-House Operations …Leading to Desired Business Outcomes Business 1,645 Origination 01 02 Pricing Reduced 260 Power TAT Credit 280 Legal & Fully In-House Team.. technical 03 04 522 Collection Low Takeover Reduced Operational Risk 207 HO / Operations 10
Slide 12: Omni Channel Lead Generation
Omni Channel Lead Generation Customer App Bandhu App • Existing customers • Unifying construction can refer leads 7.91 % 6.35% ECO System through customer • Referral App to service APP generate leads Existing Customer Referrals Construction ecosystem Lead Generation Digital Marketing Organic Sourcin
Slide 13: Scalability
Scalability GDP Growth Growth Potential in States Branch-wise AUM as on India average: 7.2% June 30, 2024 AUM per Branch (Rs. Cr) # of Branches Tamil Nadu Andhra Telangana Karnataka Maharashtra Odisha Pradesh 39 43 185 8.2% 7.1% 7.8% 7.9% 7.6% 8.1% 42.96 % of AUM as on No. of State Branches FY 25 FY
Slide 14: Robust Underwriting, Monitoring & Collections Process
Robust Underwriting, Monitoring & Collections Process 100% In-House Sourcing Leveraging Technology Lead Generation through Digital Onboarding and KYC (a) A mobile-first fully integrated digital LOS for customer • Cust app, Bandhu app on-boarding. • Social media • 267 Branches (b) Integration of Real
Slide 15: A Mobile-First Fully Digital LOS
A Mobile-First Fully Digital LOS Omni – Channel Digital On-boarding Technical Disbursements Lead Sourcing E-KYC Identification, Geo-tagging and Dimensions E-Nach OCR of Property E-Sign Bank A/c verification On-Field Technical valuation report UPI Mandates Credit Legal Account Aggregator Digital Agre
Slide 16: Information & Technology: Key Enabler of Growth
Information & Technology: Key Enabler of Growth Lending Software Customer Relationship Human Resources & Service End-to-end software solution Automated CRM and customer Human resources management service requests system application Customer Onboarding Collections App Business Intelligence & Analytic
Slide 17: Scalable and Robust Digital Landscape
Scalable and Robust Digital Landscape Mobility Data Analytics • A Fully digital mobile-first LOS System • Time Series Forecast Using Statistical Model and • Mobile App for customer on-boarding, Credit Verification, Tensor Flow for Bounce Prediction. Technical Valuation, Collections & Customer Servic
Slide 18: Risk & Data Science Backed Centralized Underwriting
Risk & Data Science Backed Centralized Underwriting Risk Tech - Centralized Management Intervention Processing Loans approved within 72 hrs • Tech enabled • Consistency in > 90 % • 50 + key data points evaluation of customers underwriting with are collected for with 100+ data points expertise in sta
Slide 19: New Technology Upgrade
New Technology Upgrade LOS (New) Key Features • A Fully Digital LOS launched in April 2024 – A Mobile • Integrated API’s for Digital KYC, Bank verification, First System Account aggregator, E-Nach, digital agreement. • Complete visibility into the system – from Leads to • Document upload at various
Slide 20: Strong ESG /Governance
Strong ESG /Governance Focus on financial Improving Living Strong Corporate Paperless inclusion Standards Governance Initiative 78 Employment Diversified Experience Digital Transformations % in Rural / Semi-Urban of Board Members across areas, where local talents academic and professional • KYC to e
Slide 21: Performance Highlights Disbursements – Q1
Performance Highlights Disbursements – Q1 Rs in Crores Q1 Apr May Jun Q1 (excl Apr) FY 25 41 282 352 675 634 FY 24 178 224 244 646 468 Growth -77% 26% 44% 4% 35% % Note: (1) Disbursements affected in the month of April 2024 due to go-live of New LOS- ‘Mobile first lead management system’ (2) Growth
Slide 22: Performance Highlights (Quarterly)
Performance Highlights (Quarterly) Disbursement (Rs. Cr) AUM (Rs. Cr) Gross NPA (%) 968 9072 8722 1.29% 1.30% 675 646 7123 1.07% Q1 FY 24 Q4 FY 24 Q1 FY 25 Q1 FY 24 Q4 FY 24 Q1 FY 25 Q1 FY 24 Q4 FY 24 Q1 FY 25 PAT (Rs. Cr) ROA (%) ROE (%) 172 8.21% 18.13% 164 8.00% 17.25% 16.93% 7.73% 142 Q1 FY 24 Q
Slide 23: Consistent Spreads
Consistent Spreads Yields / Cost of Borrowings (%) Yield Cost of Borrowings 17.03% 16.89% 17.00% 17.28% 17.36% 17.15% 17.20% 17.21% 17.35% 17.36% 8.43% 7.74% 8.10% 8.55% 8.64% 8.30% 8.41% 8.55% 8.64% 8.64% FY 21 FY 22 FY 23 FY 24 FY 25(Q1) Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Spread (%) 8.60
Slide 24: Opex and ROA
Opex and ROA Opex (%) 2.78% 2.75% 2.70% 2.71% 2.70% 2.67% 2.67% 2.67% 2.53% 2.55% FY 21 FY 22 FY 23 FY 24 FY 25(Q1) Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 ROA (%) 8.44% 8.00% 8.00% 7.73% 8.21% 8.06% 8.06% 8.00% 7.37% 7.73% FY 21 FY 22 FY 23 FY 24 FY 25(Q1) Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q
Slide 25: Asset Quality
Asset Quality Gross NPA (%) PCR 80% Net NPA (%) 1.29% 1.30% 0.98% 1.19% 1.19% 0.97% 1.07% 0.89% 0.89% 0.80% Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Collection efficiency (%) E-NACH/Digital >98% 30 + DPD (%) Collections 99.52% 99.72% 99.65% 100.15% 99
Slide 26: Provision for Expected Credit Loss (ECL)
Provision for Expected Credit Loss (ECL) Rs in Lakhs Consolidated 30-Jun-24 31-Mar-24 30-Jun-23 31-Mar-23 Gross Stage 3 11,836 9,330 9,224 7,767 % portfolio in Stage 3 1.30% 1.07% 1.29% 1.15% ECL Provision Stage 3 2,959 2,333 2,306 1,942 Net Stage 3 8,877 6,998 6,919 5,825 Provision coverage ratio (
Slide 27: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix 20+ Lender Relationships Sources of funds mix(%) 9% No Exposure to Short term loan incl CPs 5% DFI 22% 64% Refinance Banks NHB NCDs Others* Private Sector Avg. Tenure of FY 24 (Q1) FY24 FY23 Borrowings (months) 83 80.1
Slide 28: ALM Surplus
ALM Surplus Position as on 30 June 2024 (Rs.Cr) Surplus <3 Months 676 474 1,150 3-6 Months 446 279 725 6m -1 Year 866 460 1,326 1-3 Years 2,943 4,119 1176 3-5 Years 1,738 3,808 2070 5-7 Years 890 3,245 2355 7-10 Years 957 2,765 1808 >10years 143 422 279 Outflows Inflows 27
Slide 29: Fixed Vs Floating (Assets Vs. Liabilities)
Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (₹ Cr) Borrowings – Fixed Vs. Floating As on Jun-24 Fixed Floating 9,072 9,072 19.88% 28.97% 59% 58% 58% 57% 28.97% 54% 52% 50% 80.12% 43% 42% 42% 48% 50% 41% 46% 42.06% Loan Assets Borrowing/Equity Equity Fixed Floating Dec-22 Mar-
Slide 30: Comfortable Liquidity Position/ Capital Adequacy
Comfortable Liquidity Position/ Capital Adequacy A. Liquidity Rs in Crores Particulars 30-Jun-24 Unecumbered Cash & Cash equivalents 387 Unavailed Sanctions from Banks 520 Total 907 Particulars FY 25 Q2 FY 25 Q3 Opening Liquidity 907 1,158 * Rs.1,386 Crores Add: Principal repayments & Surplus from O
Slide 31: Key Growth Strategies
Key Growth Strategies Continued Focus on HL & Deeper Penetration in Continued focus on Strengthen focus on SBL Existing Markets productivity & Credit Cost • Large headroom in new to • Increasing penetration in • Focus on Productivity, Credit credit, retail segment existing markets Cost and Opex • Di
Slide 32: Experienced and Well Diversified Board
Experienced and Well Diversified Board Non-Executive Chairman Managing Sumir KP Director M. Anandan Chadha Nominee Balaraj Directors Executive Nominee Nominee Chairman Director - Director - WestBridge WestBridge Non-Executive Independent K. M. S. Krishnamurthy Mohandass Krishnamurthy Directors Forme
Slide 33: Stable Management
Stable Management P. Balaji Several years of experience in financial Services Managing Director including HFC C.T. Manoharan John Vijayan ED & Chief Business Officer Chief Financial Officer Rich experience in housing finance Experience in Financial Services in the industry across sales, channel and
Slide 34: Diversified Shareholding
Diversified Shareholding Top Institutional Shareholders - Key Investors Shareholding Pattern Investor Details % of holding SBI MF 7.56 7.83% Malabar 6.70 9.10% 23.97% Founder Promoter Capital Research 5.54 -M Anandan Investor Promoter Ward Ferry 3.13 – WestBridge Steadview 3.07 Fll Aberdeen 2.95 28.
Slide 35: Annexures
Annexures 34
Slide 36: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs in Crores FY 24 FY 25 FY 24 FY 24 Q1 FY 25 Over Full Year Particulars Q1 Q1 Q4 Q1 FY 24 1,320 Interest Income 381 297 360 28% 97 Fee and Other Income 24 19 31 (388) Interest Expenses (120) (85) (109) 1,029 NIM 285 231 283 23% (207) Operating Expenses (
Slide 37: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs in Crores Particulars Jun-24 Jun-23 Source of Funds Share capital 100 100 Reserves &surplus 3,718 3,282 Net worth 3,818 3,382 Borrowings 5,521 4,134 Other Liabilities &Provisions 45 28 Total Source of Funds 9,383 7,543 Application of Funds Loan
Slide 38: RoA Tree (based on Avg Loan Book)
RoA Tree (based on Avg Loan Book) FY 25 FY 24 Particulars Q1 Q1 Revenue from Operations 17.67% 17.60% Other Income 0.52% 0.63% Total Revenue 18.19% 18.23% Interest Expenses (5.39%) (4.91%) NIM 12.80% 13.32% ECL Provisions / Write-Off's (0.16%) (0.17%) Operating Expenses (2.67%) (2.55%) Profit Before
Slide 39: 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 Investor Presentation | Q1 FY24
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