Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — Q3 FY24 Earnings Presentation
37 slides from Aptus Value Housing Finance India's earnings presentation, Feb 1, 2024
Slide 1: Exchange filing cover letter
Ref No: APTUS/05-FEB/2023-24 February 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, Su
Slide 2: Investor Presentation | Q3 FY24
Aptus Value Housing Finance India Limited Investor Presentation | Q3 FY24 1
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 - Stepping into 15th year of operations Regulated by RBI and supervised by NHB Run by professional management team backed by Presence in 262 locations strong Founder Promoter and marquee investors 3
Slide 5: 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 6: 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 7: Journey – over the years
Journey – over the years AUM Rs. Crores CAGR - 32% 50K + Customers 1 Lakh + (5 Years) Customers 8072 (#) Listed Equity 6738 From Marquee Investors 5180 Expansion 100th Branch to Four 4068 States 3183 AUM Rs.100 Cr 2247 1st PE Equity 1414 846 358 519 86 159 252 0 29 2010 2011 2012 2013 2014 2015 2016
Slide 8: Financial Snapshot – 5 Years
Financial Snapshot – 5 Years Rs in Crores FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 (9M) CAGR # No. of Branches 143 175 190 208 231 262 No. of Customers 30,749 43,987 58,069 83,565 1,07,146 1,25,604 Disbursements 1,089 1,271 1,298 1,641 2,395 2,159 Loan Book * 2,247 3,179 4,068 5,180 6,738 8,072 32% Total
Slide 9: Snapshot - December 2023
Snapshot - December 2023 Assets under Management (AUM) Disbursement Gross Stage 3 Rs. 8,072 Cr Rs. 2,159 Cr 1.19 % +28% +6% +25% +3% -25 bps 0 bps NIM Opex to Assets Profit After Tax 13.37% 2.67 % Rs. 448 Cr Consistently maintained -08 bps -04 bps +22 % +6% Return on Assets Return on Equity YoY 8.06
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) HFC NBFC Small Business Loan & Non-HL – 100% LIG Customers 79% Self Employed Borrowers 72% AUM – Rs 1722 Cr Consolidated Rural Focus 77% Avg Ticket Size < Rs.10 lacs >93% 9
Slide 11: 100% In-House Operations
100% In-House Operations Fully In-House Team… …Leading to Desired Business Outcomes Pricing Power 1,701 258 Business Origination Credit Reduced TAT 262 511 Low Takeover Legal & technical Collection Reduced Operational Risk 191 HO / Operations 10
Slide 12: 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 7.41 % 6.21 % ✓Lead generation through social media Campaigns & Digital marketing ✓Our sa
Slide 13: Scalability
Scalability Growth Potential in States Branch-wise AUM as on December 31, 2023 AUM per Branch (Rs. Cr) # of Branches Tamil Andhra Nadu Telangana Karnataka Pradesh 47 37 178 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 AU
Slide 14: 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 15: 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 16: 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 17: 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 evaluation of underwriting with collected for customers with 100+ expertise in state- Loans approved Customer Profile data points w
Slide 18: 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 19: Performance Highlights (Quarterly)
Performance Highlights (Quarterly) Disbursement(Rs. Cr) AUM (Rs. Cr) Gross NPA(%) 768 1.44% 745 8072 7604 6307 1.19% 1.19% 605 Q3 FY 23 Q2 FY 24 Q3 FY 24 Q3 FY 23 Q2 FY 24 Q3 FY 24 Q3 FY 23 Q2 FY 24 Q3 FY 24 PAT (Rs. Cr) ROA (%) ROE (%) 17.00% 17.10% 8.53% 157 148 8.10% 8.06% 16.02% 126 Q3 FY 23 Q2
Slide 20: Performance Highlights (Year on Year)
Performance Highlights (Year on Year) Disbursement (Rs. Cr) AUM (Rs. Cr) Gross NPA (%) 8072 2,159 1.44% 6307 1.19% 1,734 9M FY 23 9M FY 24 9M FY 23 9M FY 24 9M FY 23 9M FY 24 Growth YoY 25% Growth YoY 28% PAT (Rs. Cr) RoA (%) ROE (%) 448 17.10% 8.53% 8.06% 16.02% 368 9M FY 23 9M FY 24 9M FY 23 9M FY
Slide 21: Consistent Spreads
Consistent Spreads Yields / Cost of Borrowings (%) 17.20% 17.03% 16.89% 17.00% 17.23% 16.90% 17.00% 17.15% 17.20% 17.21% 9.80% 8.43% 8.10% 8.45% 8.30% 8.41% 8.55% 7.74% 7.90% 8.10% FY 2 0 FY 2 1 FY 2 2 FY 2 3 FY2 4 (9 M) Q 3 FY2 3 Q 4 FY2 3 Q 1 FY2 4 Q 2 FY2 4 Q 3 FY2 4 Spread (%) 9.15% 8.90% 9.00%
Slide 22: Opex and ROA
Opex and ROA Opex (%) 3.40% 2.78% 2.75% 2.67% 2.75% 2.75% 2.71% 2.67% 2.53% 2.55% FY 20 FY 21 FY 22 FY 23 FY 24 (9M) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 ROA (%) 8.53% 8.44% 8.44% 8.21% 8.06% 8.06% 8.00% 8.06% 7.37% 7.01% FY 20 FY 21 FY 22 FY 23 FY 24 (9M) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 21
Slide 23: Asset Quality
Asset Quality PCR – 89 % Gross NPA (%) Net NPA (%) 1.44% 1.29% 1.15% 1.19% 1.19% 1.08% 0.97% 0.86% 0.89% 0.89% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 E-NACH/Digital Collections- >95% Collection efficiency (%) 30 + DPD (%) 102.90% 100.31% 99.52% 99.72% 99.65% 6.27% 6.27
Slide 24: Provision for Contingencies (ECL)
Provision for Contingencies (ECL) Rs in lakhs Consolidated 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23 31-Mar-22 Gross Stage 3 9,571 9,061 9,224 7,767 6,184 % portfolio in Stage 3 1.19% 1.19% 1.29% 1.15% 1.19% ECL Provision Stage 3 2,393 2,265 2,306 1,942 1,546 Net Stage 3 7,179 6,796 6,919 5,825 4,638
Slide 25: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile 20+ Lender Relationships No Exposure to Short term loan incl CPs DFI Refinance Private Sector Avg. Tenure of FY 24 (9M) FY23 FY22 Borrowings (months) 80.1 86.9 84.7 • Others represents Securitisation Public Sector • Credit Rating (ICRA) – AA (-) Stable •
Slide 26: ALM Surplus
ALM Surplus Position as on 31 Dec 2023 (Rs.Cr) Surplus 392 320 457 903 1811 1990 1762 444 25
Slide 27: Fixed Vs Floating (Assets Vs Liabilities)
Fixed Vs Floating (Assets Vs Liabilities) Loan Assets & Borrowings (₹ Cr) As on Dec-23 Borrowings - Fixed Vs. Floating 8,072 8,072 21.06% 24.92% 29.25% 78.94% 45.84% Loan Assets Borrowings/Equity gap between Loan Assets & Borrowings filled by a portion of Equity 26
Slide 28: Comfortable liquidity position/Capital Adequacy
Comfortable liquidity position/Capital Adequacy A. Liquidity Rs in Crores Particulars 31-Dec-23 Unecumbered Cash & Cash equivalents 351 Unavailed Sanctions from Banks 310 Unavailed Sanctions from NHB 300 Total 961 FY 24 FY 25 Particulars Q4 Q1 Opening Liquidity 961 1,161 * Rs.1,387 Crores Surplus Ad
Slide 29: 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 30: 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 31: 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 32: Diversified Shareholding
Diversified Shareholding Shareholding Pattern Top Institutional Shareholders Key Investors Public & Founder Promoter Others 7.33% – M.Anandan Investor Details % of holding 24.97% Malabar 6.83 Capital research 4.62 DII 5.22% SBI MF 3.65 Steadview 3.18 Ward Ferry 3.08 Aberdeen 2.96 Vanguard 1.47 Mirae
Slide 33: Annexures
Annexures 32
Slide 34: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs in Crores FY 23 FY 24 FY 23 FY 24 FY 23 Growth % Particulars Full Year Q3 Q3 9M 9M 9M-o-9M 1,058.40 Interest Income 338.46 277.32 959.90 767.79 25% 70.60 Fee and Other Income 24.18 17.48 62.07 52.82 (275.91) Interest Expenses (98.45) (77.16) (279.33) (
Slide 35: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs in Crores Mar-23 Particulars Dec-23 Dec-22 Source of Funds 99.61 Share capital 99.78 99.60 3,239.72 Reserves & surplus 3,601.58 3,102.73 3,339.33 Net worth 3,701.36 3,202.33 3,786.02 Borrowings 4,619.38 3,659.11 50.70 Other Liabilities & Provisi
Slide 36: RoA Tree (based on Avg Loan Book)
RoA Tree (based on Avg Loan Book) (%) FY 24 FY 23 Particulars 9M 9M Revenue from Operations 17.78% 17.91% Other Income 0.62% 0.60% Total Revenue 18.40% 18.51% Interest Expenses (5.03%) (4.60%) NIM 13.37% 13.91% ECL Provisions / Write-Off's (0.29%) (0.61%) Operating Expenses (2.67%) (2.75%) Profit Be
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 36
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