Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — Q1 FY24 Earnings Presentation
36 slides from Aavas Financiers's earnings presentation, Aug 3, 2023
Slide 1: Stock exchange cover letter for investor presentation
Ref. No. AAVAS/SEC/2023-24/453 Date: August 03, 2023 To, To, The National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai – 400051 Mumbai – 400001 Scrip Code: 541988 Scrip Symbol: AAVAS Dear Sir/Madam, Su
Slide 2: Investor Presentation – 3M FY24
AAVAS FINANCIERS LIMITED Investor Presentation – 3M FY24
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aavas Financiers Ltd. (the “Company”), without any specific objectives and solely for information purposes and do not constitute directly or indirectly any advertisement, advise, offer, recomm
Slide 4: Our Background
Our Background Commenced operations in 2011 Regulated by Reserve Bank of India (“RBI”) from Jaipur, Rajasthan Supervised by National Housing Bank (“NHB”) Currently being run by professional management team backed by Recognized by NHB for refinance marquee private equity players facility Kedaara Capi
Slide 5: Our Pillars of Strength
Our Pillars of Strength Professional Management Team Experienced Board of Directors In-house Execution Model Technology and Data Analytics Improving Credit Ratings Diversified Shareholding Base
Slide 6: Aavas 3.0: Building a lasting institution
Aavas 3.0: Building a lasting institution Aavas 1.0 Aavas 2.0 Aavas 3.0 2012 2016 2023 AUM (INR Bn) Investment (2016) by: IPO (October 2018) 94.5 113.5 141.7 40.7 59.4 78.0 0.0 1.8 4.1 8.4 16.8 26.9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY28E # of 25 35 42 44 94 165 210 250 280
Slide 7: Strong Management Depth continues to drive Aavas's Outperformance
Strong Management Depth continues to drive Aavas's Outperformance Sachinder Bhinder Ghanshyam Rawat Ashutosh Atre Managing Director & Chief Executive Officer President & Chief Financial Officer President & Chief Risk Officer • 25+ years of experience • 30+ years of experience in financial • 30+ year
Slide 8: Experienced Board has guided Aavas's journey since inception
Experienced Board has guided Aavas's journey since inception Sandeep Tandon Soumya Rajan Kalpana Iyer Chairperson of Board, Independent Independent Director & Chairperson of Independent Director & Chairperson Director & Chairperson of Stakeholders Nomination & Remuneration Committee of Audit Committ
Slide 9: Superior Business Outcome – In-house Execution Model
In-house Execution Model 1. Reduction in average TAT (days) In-house execution model – Replicated across the states Turn around time is a key metric for employee incentives Lead generation and Risk management Collections 13.4 13.1 sourcing 10.6 10.0 11.0 Superior Business Outcome Focused approach
Slide 10: IT Transformation – Project GATI and UNNATI
IT Transformation – Project GATI and UNNATI (End to End digital journey from origination to servicing) Guiding Principles Key Objectives Be a digital first, technologically advanced & agile 1 2 3 organization Transform loan origination & customer service processes leveraging Salesforce platform
Slide 11: State-of-the art technology implementation enabling digital & analytical capabilities
State-of-the art technology implementation enabling digital & analytical capabilities LOS LMS Enterprise GL A New digital loan origination Adopting a next-gen cloud ERP system platform (LOS) and customer service Adopting a new loan management for back-office process automations to system to enable b
Slide 12: Improving Credit Ratings
Improving Credit Ratings Long-Term Credit Rating Short-Term Credit Rating Reaffirmed ICRA CARE ICRA Jun-23 A1+ AA / AA / Jun-23 Jun-23 Stable Stable CARE Jun-23 A1+ A/ A+ / INDIA RATINGS Mar-16 Mar-17 Stable Stable Jun-23 A1+ 11
Slide 13: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 30th Jun 2023 30th Jun 2023 Investor Details % Holding Others, 9.19% Kedaara Capital^ 23.61 Partners Group^ 16.13 Wasatch Global Investors^ 6.11 Stewart Investors^ 6.08 Kedaara Capital, UTI Asset Management
Slide 14: Size of Opportunity
Size of Opportunity Indian Housing Finance Housing Market (₹ Trn) Market Size ₹ 29.0 Trn 26.0 29.0 (as on Dec-22) 22.9 20.7 18.4 15.8 13.4 YoY Growth +21% (as on Dec-22) Market Share SCBs - 69% HFCs - 31% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 (as on Dec-22) Mortgage Penetration (%) Asset
Slide 15: Financial Performance
Financial Performance Key Business Parameters Geographical Distribution Spreads and Margins Asset Quality Liability Franchise Key Ratios
Slide 16: Performance Highlights
Performance Highlights AUM (₹ Mn) Disbursement (₹ Mn) Gross Stage 3 (%) +23.2% - 2.3% -08 bps 146,500 10,936 Indicates upto 90 DPD 10,682 1.00% assets but categorized as 118,936 1.08% 0.13% GNPA/Gross Stage 3 on 0.26% account of RBI notification 0.82% 0.87% Jun-22 Jun-23 3MFY23 3MFY24 Jun-22 Jun-23
Slide 17: Healthy Business Growth
Healthy Business Growth AUM (₹ Mn) Disbursements (₹ Mn) PAT* (₹ Mn) +28% 141,667 CAGR +20% 113,502 CAGR +36% 50,245 CAGR 4,283 94,543 3,575 77,961 36,022 2,903 59,416 29,304 2,491 26,724 26,569 40,730 20,512 1,761 932 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19
Slide 18: AUM Break-up
AUM Break-up Product Category Occupation Category Customer Category ATS : ₹ 0.86 Mn ATS : ₹ 0.72 Mn ATS : ₹ 0.90 Mn 28.9% 0.1% 39.9% ATS : ₹ 7.77 Mn 30-Jun-22 60.1% 99.9% 71.1% ATS : ₹ 0.94 Mn ATS : ₹ 0.84 Mn ATS : ₹ 0.74 Mn ATS : ₹ 0.93 Mn ATS : ₹ 0.89 Mn 0.3% 30.2% 40.2% ATS : ₹ 7.48 Mn 30-Jun-23
Slide 19: Disbursement Break-up – Product Category
Disbursement Break-up – Product Category 3MFY23 3MFY24 ATS : ₹ 0.76 Mn ATS : ₹ 0.83 Mn 37.4% 33.2% 62.6% 66.8% ATS : ₹ 1.06 Mn ATS : ₹ 1.26 Mn Disbursement include 14.3% of mortgaged-backed MSME Loans Disbursement include 9.3% of mortgage-backed MSME Loans classified under Other Mortgage Loans class
Slide 20: Geographical Distribution
Geographical Distribution State Branches Operations Commenced in Rajasthan 102 2012 Maharashtra 48 2012 Gujarat 44 2012 Madhya Pradesh 49 2013 Delhi 5 2013 Haryana & Punjab 20 2017 Chhattisgarh 9 2017 Uttar Pradesh 28 2018 Uttarakhand 9 2018 Himachal Pradesh 4 2020 Orissa 6 2021 Karnataka 24 2021 To
Slide 21: Consistent Spreads
Consistent Spreads Yields, Cost of Borrowings and Spreads (%) Yields (%) COB (%) Spreads (%) Yields (%) COB (%) Spreads (%) 13.04% 13.12% 13.26% 12.90% 12.79% 12.65% 12.67% 12.85% 15.12% 14.72% 13.99% 13.75% 13.63% 13.16% 13.12% 12.65% 10.48% 9.51% 7.61% 7.66% 8.74% 7.17% 7.03% 7.29% 8.63% 8.44% 6.8
Slide 22: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) 7.80% 8.11% 8.23% 3.25% 3.37% 3.58% 6.93% 2.64% 2.88% 3.21% 3.34% 3.45% 3MFY22 H1FY22 9MFY22 FY22 3MFY22 H1FY22 9MFY22 FY22 3MFY22 H1FY22 9MFY22 FY22 8.17% 8.23% 8.28% 3.51% 7.67% 3.42% 3.43% 3.17% 3.56% 3.71% 3.75% 3.68% 3MFY23 H1FY23 9MFY23 FY23
Slide 23: Asset Quality
Asset Quality Gross Stage 3 (%) Net Stage 3 (%) DPD upto 90 DPD above 90 DPD upto 90 DPD above 90 1.72% 1.33% 0.89% 1.08% 1.10% 1.13% 0.92% 1.00% 0.87% 0.73% 0.99% 0.70% 0.84% 0.84% 0.68% 0.17% 0.19% 0.11% 0.13% 0.77% 0.26% 0.21% 0.13% 0.14% 0.08% 0.10% 0.31% 0.24% 0.83% 0.82% 0.93% 0.94% 0.81% 0.87
Slide 24: Robust Liability Management
Robust Liability Management Diversified Funding Mix Increased Prime Lending Rate Loan Assets & Borrowings (₹ Mn) As on Jun-23 by 40 bps w.e.f. 05th Apr 2023 As on Jun-23 32 Lenders Floating Fixed Equity 11.2% Terms Loans Diversified Mix Assignment No exposure to 21.3% 1,46,500 1,46,500 46.6% Commerc
Slide 25: ALM Surplus
ALM Surplus Surplus Management* (₹ Mn) Average tenor of outstanding borrowing (months) As on Jun-23 17,819 <3months 11,385 6,434 29,530 <6months 18,061 11,469 143 39,045 134 <1year 18,963 130 20,082 126 128 125 75,433 <3years 57,698 17,735 104,798 <5years 87,225 17,573 127,469 <7years 101,332 26,137
Slide 26: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Jun-23 Cash & Cash Equivalents 20,227 High-Quality Liquidity of Un-availed CC Limits 1,100 ₹ 21,327 Mn Documented & Un-availed Sanctions from NHB - Documented & Un-availed Sanctions from other Banks 10,500 Total Liquidity Position 31,827 Partic
Slide 27: Net Securitization Volume
Net Securitization Volume ₹ 7,784 Mn ₹ 9,541 Mn ₹ 2,001 Mn 3,054 2,981 2,967 2,916 2,234 2,001 1,749 1,424 0 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 26
Slide 28: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (₹) 13.18% 428.5 12.49% 367.9 9.84% 314.4 Jun-21 Jun-22 Jun-23 3MFY22 3MFY23 3MFY24 Capital Adequacy Ratio (%) Earning Per Share* (₹) Tier I Tier II 13.9 52.70% 49.80% 11.3 47.02% 7.6 1.11% 0.66% 0.30% Jun-21 Jun-22 Jun-23 3MFY22 3MFY23 3MFY24 Data o
Slide 29: Annexures
Annexures Quarterly Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Networth Reconciliation ESG 28
Slide 30: Quarterly Profit & Loss Statement
Quarterly Profit & Loss Statement Particulars (₹ Mn ) Q1 FY24 Q1 FY23 Y-o-Y Interest Income on Loans (incl. Processing Fee) 4,129.4 3,199.8 29.1% Interest Income on Fixed Deposits 297.7 196.6 Reversal Income on Earlier Assigned Loans (299.0) (247.9) Upfronting Income on Fresh Assigned Loans 330.3 21
Slide 31: Balance Sheet
Balance Sheet Particulars (₹ Mn ) 30-Jun-23 31-Mar-23 Sources of Funds Share Capital 791 791 Reserves & Surplus 33,096 31,906 Borrowings 1,06,772 98,873 Deferred Tax Liability (Net) 506 502 Other Liabilities & Provisions 2,827 2,034 Total 1,43,992 1,34,105 Application of Funds Loan Assets 1,19,144 1
Slide 32: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) Q1 FY24 Q1 FY23 Y-o-Y Net Profit as per IGAAP 1,074.4 883.6 21.6% Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial assets at amortised cost / net 9.7 45.2 intere
Slide 33: ECL Provisions
ECL Provisions Particulars (₹ Mn ) 30-Jun-23 31-Mar-23 30-Jun-22 Gross Stage 1 1,16,485.3 1,12,318.4 93,079.4 During FY22, resolution plan was implemented for certain % portfolio in Stage 1 97.14% 97.26% 96.39% borrower accounts as per RBI’s Resolution Framework 2.0 ECL Provision Stage 1 267.8 259.6
Slide 34: Networth Reconciliation
Networth Reconciliation Particulars (₹ Mn ) 30-Jun-23 31-Mar-23 Net worth as per previous GAAP 31,267.0 30,177.4 Adjustments increasing/(decreasing) net worth as reported under previous GAAP: Adoption of EIR for amortisation of Income and expenses - financial assets at (208.2) (217.9) amortised cost
Slide 35: Environmental, Social & Governance
Environmental, Social & Governance Pillars Pillars for for Sustainable Sustainable Future Future Key Quarterly Updates Green Planet Nurturing Workplace Green housing program with IFC: 2 Green India Drive Seminars co-organized in national Create a healthy planet by reducing our Create a healthy & d
Slide 36: Thank You !
Contact Us Aavas Financiers Limited CIN: L65922RJ2011PLC034297 Mr. Ghanshyam Gupta investorrelations@aavas.in www.aavas.in Thank You ! Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 www.sgapl.net 35