Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — H1 FY22 Earnings Presentation
35 slides from Aavas Financiers's earnings presentation, Oct 28, 2021
Slide 1: Exchange filing letter for investor presentation
A gvqs FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Ref. No. AAVAS/SEC/2021-22/766 Date: October 28, 2021 To, To, The National Stock Exchange of India Limited BSE Limited The Listing Department Dept, of Corporate Services Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalai Street, Fo
Slide 2: Investor Presentation – H1 FY22
AAVAS FINANCIERS LIMITED Investor Presentation – H1 FY22
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aavas Financiers Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securit
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 Experienced Board of Directors Professional Management Team In-house Execution Model Technology and Data Analytics Improving Credit Ratings Diversified Shareholding Base
Slide 6: Experienced Board of Directors
Experienced Board of Directors Sandeep Tandon Soumya Rajan Kalpana Iyer Chairman & Independent Director Independent Director Independent Director Qualifications: Bachelor’s in Electrical Qualifications: Bachelor’s in Mathematics & Qualifications: Chartered Accountant Engineering from University of S
Slide 7: Professional Management Team
Professional Management Team Sushil Kumar Agarwal - Managing Director & CEO Ghanshyam Rawat - Chief Financial Officer • 20+ years of experience in retail financial services • Experience in financial services & allied sectors • Prior associated with Kotak Mahindra Prime, ICICI Bank & Au Small • Prior
Slide 8: 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 21.1 Risk management Collections sourcing 13.4 13.1 Superior Business Outcome 10.6 ▪ Focused approach to di
Slide 9: Technology and Data Analytics
Technology and Data Analytics Lead Generation Underwriting Operations Collections ▪ Majority of the leads ▪ Platform integration ▪ E-disbursement & E- ▪ Route optimization for are logged in through with credit bureaus repayment facility at all collection personnel the sourcing app ▪ Quarterly scrub
Slide 10: Improving Credit Ratings
Improving Credit Ratings Long-Term Credit Rating Short-Term Credit Rating CARE Ratings revised the Long-Term rating outlook from AA-/Stable to AA-/Positive on 30th September 2021 Reaffirmed CARE ICRA ICRA Sep-21 A1+ AA- / AA- / Sep-21 Sep-21 Positive Stable CARE Sep-21 A1+ A+ / A/ INDIA RATINGS Mar-
Slide 11: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 30th September 2021 30th September 2021 Investor Details % Holding Others, 4.30% Capital Group^ 8.39 GIC^ 6.03 Wasatch Global Advisors^ 5.07 Kedaara Capital, Nomura Asset Management^ 3.99 23.66% UTI Asset M
Slide 12: Size of Opportunity
Size of Opportunity Indian Housing Finance Housing Market (₹ Trn) Market Size ₹ 22.8 Trn (as on Mar-21) 21.3 22.8 18.9 YoY Growth +7% 12.3 14.2 16.6 10.4 (as on Mar-21) Banks - 9%, HFCs & NBFCs - 3% Market Share Banks - 67% HFCs & NBFCs - 33% Mar-16 Mar-17 Mar-18 Mar-20 Mar-21 Mar-15 Mar-19 (as on M
Slide 13: Measures from Government and Regulator
Measures from Government and Regulator Continued Pause in Policy Rate RBI’s MPC voted unanimously to maintain status-quo (repo rate @ 4%) even in the October meeting and continued with its accommodative stance for as long as necessary to revive growth on a durable & sustainable basis. Resolution Fra
Slide 14: Financial Performance
Financial Performance Key Business Parameters Geographical Distribution Spreads and Margins Asset Quality Liability Franchise Key Ratios
Slide 15: Performance Highlights
Performance Highlights AUM (₹ Mn) Disbursement (₹ Mn) Gross Stage 3 (%) +21.3% +55.1% +49bps 101,481 83,669 13,641 Average Amount^ per Active 0.96% Loan Account as on Sep-21 8,796 0.47% ₹ 0.85 Mn Sep-20 Sep-21 H1FY21 H1FY22 Sep-20 Sep-21 PAT* (₹ Mn) NIM (%) ROA (%) Average Amount^ per Disbursed +30.
Slide 16: Healthy Business Growth
Healthy Business Growth AUM (₹ Mn) Disbursements (₹ Mn) PAT* (₹ Mn) +32% +9% CAGR 94,543 CAGR +46% 2,903 CAGR 2,491 77,961 29,304 26,724 26,569 59,416 1,761 20,512 40,730 932 Mar-18 Mar-19 Mar-20 Mar-21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Data as per Ind-AS * PAT includes Other Comprehensive Inc
Slide 17: AUM Break-up
AUM Break-up Product Category Occupation Category Customer Category ATS : ₹ 0.83 Mn ATS : ₹ 0.66 Mn ATS : ₹ 0.87 Mn 26.5% 0.2% 35.1% ATS : ₹ 6.77 Mn 30-Sep-20 64.9% 99.8% 73.5% ATS : ₹ 0.92 Mn ATS : ₹ 0.82 Mn ATS : ₹ 0.69 Mn ATS : ₹ 0.88 Mn ATS : ₹ 0.85 Mn 27.9% 0.1% 39.8% ATS : ₹ 6.70 Mn 30-Sep-21
Slide 18: Disbursement Break-up – Product Category
Disbursement Break-up – Product Category H1 FY21 H1 FY22 ATS : ₹ 0.75 Mn ATS : ₹ 0.76 Mn 25.6% 37.5% 62.5% 74.4% ATS : ₹ 1.08 Mn ATS : ₹ 1.10 Mn Disbursement include 5.7% of MSME Loans classified under Other Mortgage Loans Disbursement include 12.6% of MSME Loans classified under Other Mortgage Loan
Slide 19: Geographical Distribution
Geographical Distribution State Branches Operations Commenced in Rajasthan 96 2012 Maharashtra 44 2012 Gujarat 40 2012 Madhya Pradesh 40 2013 Delhi 6^ 2013 Haryana & Punjab 16 2017 Chhattisgarh 7 2017 Uttar Pradesh 21 2018 Uttarakhand 9 2018 Himachal Pradesh 4 2020 Orissa 3 2021 Karnataka 11 2021 To
Slide 20: Consistent Spreads
Consistent Spreads Yields, Cost of Borrowings and Spreads (%) Yields (%) COB (%) Spreads (%) Yields (%) COB (%) Spreads (%) 18.13% 13.74% 13.63% 16.49% 13.62% 13.52% 13.42% 13.16% 12.99% 12.90% 15.12% 14.72% 13.99% 13.75% 13.63% 13.16% 12.28% 11.41% 10.48% 8.68% 8.44% 9.51% 8.10% 7.90% 7.68% 7.40% 8
Slide 21: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) 8.69% 8.66% 8.16% 4.03% 4.05% 3.75% 8.10% 3.17% 3.38% 3.28% 3.42% 3.38% 3MFY20 H1FY20 9MFY20 FY20 3MFY20 H1FY20 9MFY20 FY20 3MFY20 H1FY20 9MFY20 FY20 7.42% 7.71% 2.89% 3.22% 3.49% 6.15% 6.82% 2.55% 2.62% 2.80% 2.82% 3.01% 3MFY21 H1FY21 9MFY21 FY21
Slide 22: Asset Quality
Asset Quality Gross Stage 3 (%) Net Stage 3 (%) 0.86% 1.14% 1.00% 0.72% 0.71% 0.72% 0.98% 0.96% 0.46% 0.46% 0.47% 0.34% 0.32% 0.32% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 1+DPD (%) Segment-wise Gross Stage 3 (%) Sep-20 Sep-21 12.67% 8.88% 8.
Slide 23: Robust Liability Management
Robust Liability Management Diversified Funding Mix Loan Assets & Borrowings (₹ Mn) As on Sep-21 As on Sep-21 29 Lenders Terms Loans Floating Fixed Equity Diversified Mix 17.6% 36.8% Assignment No exposure 101,481 101,481 to Commercial Papers 23.0% NHB Refinancing Incremental Q2 FY22 borrowings 22.7
Slide 24: ALM Surplus
ALM Surplus Surplus Management* (₹ Mn) Average tenor of outstanding borrowing (months) As on Sep-21 8,886 3,478 <3months 5,409 13,373 4,996 <6months 8,377 143 135 134 26,690 11,025 130 <1year 123 15,665 125 52,011 <3years 12,788 39,222 72,657 <5years 16,368 56,289 <7years 88,338 21,403 66,935 <10yea
Slide 25: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Sep-21 Cash & Cash Equivalents 12,050 High Quality Un-availed CC Limits 1,190 Liquidity of Documented & Un-availed Sanctions from NHB 2,550 ₹ 15,790 Mn Documented & Un-availed Sanctions from other Banks 8,100 Total Liquidity Position 23,890 Par
Slide 26: Net Securitization Volume
Net Securitization Volume ₹ 6,802 Mn ₹ 6,647 Mn ₹ 5,496 Mn ₹ 1,749 Mn 2,992 2,579 2,281 2,397 2,077 1,749 1,509 1,590 1,029 991 1,000 500 0 0 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 25
Slide 27: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (₹) 12.78% 12.25% 10.80% 325.7 283.4 251.0 Sep-19 Sep-20 Sep-21 H1FY20 H1FY21 H1FY22 Capital Adequacy Ratio (%) Earning Per Share* (₹) Tier I Tier II 60.36% 50.84% 51.00% 19.2 15.4 14.7 3.19% 2.24% 1.14% Sep-19 Sep-20 Sep-21 H1FY20 H1FY21 H1FY22 Data
Slide 28: Annexures
Annexures Quarterly and Half Yearly Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Networth Reconciliation 27
Slide 29: Quarterly Profit & Loss Statement
Quarterly Profit & Loss Statement Particulars (₹ Mn ) Q2 FY22 Q2 FY21 Y-o-Y Q1 FY22 Q-o-Q Interest Income on Loans (incl. Processing Fee) 2,826.6 2,391.8 18.2% 2,668.1 5.9% Interest Income on Fixed Deposits 144.4 201.7 142.1 Reversal Income on Earlier Assigned Loans (183.9) (163.3) (179.8) Upfrontin
Slide 30: Half Yearly Profit & Loss Statement
Half Yearly Profit & Loss Statement Particulars (₹ Mn ) H1 FY22 H1 FY21 Y-o-Y Interest Income on Loans (incl. Processing Fee) 5,494.7 4,642.7 18.4% Interest Income on Fixed Deposits 286.4 391.8 Reversal Income on Earlier Assigned Loans (363.6) (317.8) Upfronting Income on Fresh Assigned Loans 330.9
Slide 31: Balance Sheet
Balance Sheet Particulars (₹ Mn ) 30-Sep-21 31-Mar-21 Sources of Funds Share Capital 789.1 785.0 Reserves & Surplus 24,911.3 23,229.0 Borrowings 69,055.0 63,454.2 Deferred Tax Liability (Net) 210.0 285.2 Other Liabilities & Provisions 2,547.5 1,847.0 Total 97,512.9 89,600.5 Application of Funds Loan
Slide 32: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) H1 FY22 H1 FY21 Y-o-Y Q2 FY22 Q2 FY21 Y-o-Y Net Profit as per IGAAP 1,547.9 1,270.4 21.8% 834.9 669.2 24.8% Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial asse
Slide 33: ECL Provisions
ECL Provisions Particulars (₹ Mn ) 30-Sep-21 31-Mar-21 30-Sep-20 During H1 FY22, resolution plan has been implemented Gross Stage 3 795.1 739.1 312.7 for certain borrower accounts as per RBI’s Resolution % portfolio in Stage 3 0.96% 0.98% 0.47% Framework 2.0 dated 05-May-21. As a matter of prudence,
Slide 34: Networth Reconciliation
Networth Reconciliation Particulars (₹ Mn ) 30-Sep-21 Net worth as per previous GAAP 24,116.3 Adjustments increasing/(decreasing) net worth as reported under previous GAAP: Adoption of EIR for amortisation of Income and expenses - financial assets at amortised cost / net (427.8) interest on credit i
Slide 35: Thank You !
Contact Us Aavas Financiers Limited (Formerly known as Au HOUSING FINANCE LIMITED) CIN: L65922RJ2011PLC034297 Mr. Himanshu Agrawal investorrelations@aavas.in www.aavas.in Thank You ! Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 www.sgapl.net 34