Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — Q2 FY25 Earnings Presentation
41 slides from Aptus Value Housing Finance India's earnings presentation, Nov 5, 2024
Slide 1: Exchange filing cover letter
Ref No: APTUS/08-NOV/2024-25 November 05, 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, Su
Slide 2: Aptus Value Housing Finance India Limited Investor Presentation Q2 FY25
1 Aptus Value Housing Finance India Limited Investor Presentation | Q2 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 291 Branches 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, Odisha to drive further growth A Mobile-First Fully Digital LOS : Tech focused, Data driven fully Strengthening of Middle
Slide 7: Journey Over The Years
Journey Over The Years 1 Lakh + AUM Rs. Crores Customers 50K + 9,679 (#) Customers CAGR Listed 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 (H1) CAGR # No. of Branches 175 190 208 231 262 291 No. of Customers 43,987 58,069 83,565 1,07,146 1,33,499 1,45,082 Disbursements 1,271 1,298 1,641 2,395 3,127 1,610 Loan Book * 3,179 4,068 5,180 6,73
Slide 9: Snapshot: September 2024
Snapshot: September 2024 YoY QoQ Assets under Disbursement * Gross Stage 3 NIM Management (AUM) INR 9,679 Cr INR 1,610 Cr 1.25% 13.02% +27% +7% +16% +39% + 06 - 05 Healthy NIM bps bps maintained Opex to Assets Profit After Tax Return on Assets Return on Equity 2.65% INR 354 Cr 7.77% 18.30% -06 -02 C
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 22% Quasi Home Small 2% Loans Insurance Loans Business Insurance Loans Loans & Top up Loans Non-HLs 15% 61% 70% Small Business Top
Slide 11: Leading to Desired Business Outcomes
100% In-House Operations …Leading to Desired Business Outcomes Business 1,746 Origination 01 02 Pricing Reduced 282 Power TAT Credit 283 Legal & Fully In-House Team.. technical 03 04 527 Collection Low Takeover Reduced Operational Risk 208 HO / Operations 10
Slide 12: Omni Channel Lead Generation
Omni Channel Lead Generation Customer App Bandhu App • Existing customers • Unifying construction can refer leads 8.02 % 8.93% ECO System through customer • Referral App to service APP generate leads Existing Customer Referrals Construction ecosystem Lead Generation Digital Marketing Organic Sourcin
Slide 13: Distribution; Growth Potential; Scalability
Distribution; Growth Potential; Scalability GDP Growth Branch-wise AUM as on India average: 7.2% September 30, 2024 AUM per Branch (Rs. Cr) # of Branches Tamil Nadu Andhra Telangana Karnataka Maharashtra Odisha Pradesh 47 53 191 8.2% 7.1% 7.8% 7.9% 7.6% 8.1% 44.55 % of AUM as on No. of State Branche
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 • 291 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: Digital Adoption
Digital Adoption % of Customer registered on App % of Digital Agreements (Sourcing) 98% 99% 83% 40% 34% 0% E-Nach Mandate Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 99 % % of Digital Collections % of Account Aggregator Penetration 97% 98% 43% 95% 29% 0% Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q
Slide 17: 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 18: 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 19: 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 20: 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 21: Strong ESG /Governance
Strong ESG /Governance Focus Focus on on financial financial Improving Living Strong Corporate Paperless inclusion inclusion Standards Governance Initiative Diversified Experience Digital Transformations 77 Employment of Board Members across % 26 in Rural / Semi-Urban • KYC to e-KYC 77 academic and
Slide 22: Performance Highlights Disbursements – H1
Performance Highlights Disbursements – H1 Rs in Crores Q1 H1 Apr May Jun Q1 Q2 H1 ( excl. Apr ) FY 25 41 282 352 675 935 1610 634 1569 FY 24 178 224 244 646 745 1391 468 1213 Growth % -77% 26% 44% 4% 26% 16% 35% 29% Note: (1) Disbursements affected in the month of April 2024 due to go-live of New LO
Slide 23: Performance Highlights (Quarterly)
Performance Highlights (Quarterly) Disbursement (Rs. Cr) AUM (Rs. Cr) Gross NPA (%) 935 9679 9072 1.30% 1.25% 745 1.19% 675 7604 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 PAT (Rs. Cr) ROA (%) ROE (%) 182 8.10% 18.30% 172 7.73% 7.77% 17.00% 18.13% 148 Q2 FY 24 Q
Slide 24: Performance Highlights (Year on Year)
Performance Highlights (Year on Year) Growth YoY Disbursement (Rs. Cr) 16% AUM (Rs. Cr) 27% Gross NPA (%) +0.06% 1,610 9,679 1.25% 7,604 1.19% 1,391 H1 FY 24 H1 FY 25 H1 FY 24 H1 FY 25 H1 FY 24 H1 FY 25 PAT (Rs. Cr) 21% 22% ROA (%) ROE (%) +1.30% 354 8.10% 7.77% 18.30% 290 17.00% H1 FY 24 H1 FY 25 H
Slide 25: Consistent Spreads
Consistent Spreads Yields / Cost of Borrowings (%) Yield Cost of Borrowings 17.03% 16.89% 17.00% 17.28% 17.37% 17.20% 17.21% 17.35% 17.36% 17.38% 8.43% 7.74% 8.10% 8.55% 8.66% 8.41% 8.55% 8.64% 8.64% 8.68% FY 21 FY 22 FY 23 FY 24 FY 25(H1) Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Q2 FY 25 Spread (%) 8.60
Slide 26: Opex and ROA
Opex and ROA Opex (%) 2.78% 2.75% 2.70% 2.71% 2.70% 2.65% 2.67% 2.67% 2.65% 2.53% FY 21 FY 22 FY 23 FY 24 FY 25(H1) Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Q2 FY 25 ROA (%) 8.44% 8.00% 8.00% 7.77% 8.10% 8.06% 8.00% 7.37% 7.73% 7.77% FY 21 FY 22 FY 23 FY 24 FY 25(H1) Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Q
Slide 27: Asset Quality
Asset Quality Gross NPA (%) PCR 80% Net NPA (%) 1.30% 1.25% 0.98% 1.19% 1.19% 0.89% 0.89% 0.94% 1.07% 0.80% Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q3 FY 24 Q4 FY 24 Q1 FY 25 Q2 FY 25 Collection efficiency (%) E-NACH/Digital >98% 30 + DPD (%) Collections 99.72% 99.65% 100.15% 99.18% 99
Slide 28: Provision for Expected Credit Loss (ECL)
Provision for Expected Credit Loss (ECL) Rs in Lakhs Consolidated 30-Sep-24 30-Jun-24 31-Mar-24 31-Mar-23 Gross Stage 3 12,080 11,836 9,330 7,767 % portfolio in Stage 3 1.25% 1.30% 1.07% 1.15% ECL Provision Stage 3 3,020 2,959 2,333 1,942 Net Stage 3 9,060 8,877 6,998 5,825 Provision coverage ratio
Slide 29: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix 20+ Lender Relationships Sources of funds mix(%) 11% No Exposure to Short term loan incl CPs Refinance 11% 19% 59% DFI Mutual Fund Banks NHB NCDs Others* Private Sector Avg. Tenure of FY 24 (H1) FY24 FY23 Borrowings (m
Slide 30: ALM Surplus
ALM Surplus Position as on 30 September 2024 (Rs.Cr) Surplus <3 Months 755 1,642 887 3-6 Months 628 730 102 6m -1 Year 1277 159 1,436 1-3 Years 3,748 4,280 532 3-5 Years 2,106 4,001 1895 5-7 Years 1082 3,400 2318 7-10 Years 862 2,897 2035 >10years 88 483 395 Outflows Inflows 29
Slide 31: Fixed Vs Floating (Assets Vs. Liabilities)
Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (₹ Cr) Borrowings – Fixed Vs. Floating As on Sep-24 Fixed Floating 9,679 9,679 19.14% 33.23% 59% 58% 58% 54% 30.68% 52% 52% 50% 80.86% 46% 50% 41% 42% 42% 48% 48% 36.09% Loan Assets Borrowing/Equity Equity Fixed Floating Mar-23 Jun-
Slide 32: Comfortable Liquidity Position/ Capital Adequacy
Comfortable Liquidity Position/ Capital Adequacy A. Liquidity Rs in Crores Particulars 30-Sep-24 Unecumbered Cash & Cash equivalents 689 Unavailed Sanctions from Banks 550 Total 1239 Particulars FY 25 Q3 FY 25 Q4 Opening Liquidity 1239 1,476 * Rs.1,702 Crores Add: Principal repayments & Surplus from
Slide 33: 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 34: 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 35: 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 36: Diversified Shareholding
Diversified Shareholding Top Institutional Shareholders - Key Investors Shareholding Pattern Investor Details % of holding SBI MF 7.67 8.08% Malabar 6.59 9.45% 23.94% Founder Promoter Capital Research 5.50 -M Anandan Ward Ferry 3.13 Investor Promoter – WestBridge Steadview 2.88 Fll Aberdeen 1.65 28.
Slide 37: Annexures
Annexures 36
Slide 38: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs in Crores FY 24 FY 25 FY 25 FY 25 FY 24 H1 FY 25 Over Full Year Particulars Q2 Q1 H1 H1 H1 FY 24 1,320 Interest Income 405 381 786 621 27% 97 Fee and Other Income 30 24 54 40 (388) Interest Expenses (128) (120) (248) (181) 1,029 NIM 308 285 593 480 23%
Slide 39: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs in Crores Particulars Sep-24 Sep-23 Source of Funds Share capital 100 100 Reserves &surplus 3,914 3,440 Net worth 4,014 3,540 Borrowings 6,196 4,317 Other Liabilities &Provisions 54 35 Total Source of Funds 10,264 7,892 Application of Funds Loan
Slide 40: RoA Tree (based on Avg Loan Book)
RoA Tree (based on Avg Loan Book) FY 25 FY 24 Particulars H1 H1 Revenue from Operations 17.87% 17.78% Other Income 0.60% 0.65% Total Revenue 18.46% 18.43% Interest Expenses (5.44%) (5.04%) NIM 13.02% 13.39% ECL Provisions / Write-Off's (0.29%) (0.28%) Operating Expenses (2.65%) (2.71%) Profit Before
Slide 41: 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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