Aadhar Housing Finance Ltd · NSE:AADHARHFC
Aadhar Housing Finance — Q1 FY25 Earnings Presentation
36 slides from Aadhar Housing Finance's earnings presentation, Aug 8, 2024
Slide 1: Exchange filing cover letter for investor presentation
Date: 8th August, 2024 To, To The General Manager, Sr. General Manager BSE Ltd. National Stock Exchange of India Limited P. J. Towers, Dalal Street, Exchange Plaza, C-1, Block G, Bandra Kurla Complex Mumbai- 400001 Bandra (E), Mumbai – 400 051 Scrip Code: 544176 Symbol: AADHARHFC Kind Attn.: Listing
Slide 2: Aadhar Housing Finance Limited Investor Presentation Q1 FY25
Aadhar Housing Finance Limited Investor Presentation Q1 FY25
Slide 3: Disclaimer
DISCLAIMER The information contained in this presentation is provided by Aadhar Housing Finance Limited (“Aadhar” or the “Company”), to you solely for your reference. Any reference herein to the “Group” shall mean Aadhar Housing Finance Limited, together with its subsidiaries / joint ventures/ affil
Slide 4: Company Snapshot
COMPANY SNAPSHOT 21
Slide 5: Q1FY25 Key Highlights
Aadhar Housing Finance – Q1FY25 Key Highlights AUM PAT GNPA ₹ 217,263 Mn ₹ 2,001 Mn 1.3% +21% +37% -15bps YoY Change NIM ROA 8.9% 4.1% +30bps +60bps 2
Slide 6: Aadhar Housing Finance – Key Highlights
Aadhar Housing Finance – Key Highlights HFC focused on low-income housing segment in India, with a seasoned business model Scale Granular book Asset quality Distribution Liability profile c.INR217bn 100% Secured 1.3% c.INR15bn AA / Stable Jun-24 AUM Retail book GNPA Q1 FY25 CARE/ICRA/India Rating (J
Slide 7: Financial Performance
FINANCIAL PERFORMANCE 51
Slide 8: Strong AUM Growth with Sustained Disbursements
Strong AUM Growth with Sustained Disbursements AUM – By Product (INR Mn) Growth of 21% on YoY basis 2,11,209 2,17,263 2,11,209 1,88,849 1,98,652 1,79,470 1,72,228 53,258 54,808 53,258 44,363 47,914 1,47,767 40,990 1,33,252 37,635 20,292 26,849 1,57,951 1,44,486 1,50,738 1,57,951 1,62,455 1,34,593 1,
Slide 9: Stable Yields and Spreads
Stable Yields and Spreads Yields, Cost of Borrowings and Spreads (%) 1 13.9% 14.0% 14.0% 14.0% 13.9% 14.0% 13.1% 13.4% 13.0% 7.7% 8.0% 8.0% 8.0% 7.6% 7.6% 7.7% 7.8% 7.0% 6.0% 6.4% 6.3% 6.2% 5.8% 5.9% 5.9% 6.0% 5.4% 75 bps PLR increased wef 1st April 2023 and 25 bps PLR Increased on 16th June 2024 FY
Slide 10: Consistent Improvement in Asset Quality and Efficiency
Consistent Improvement in Asset Quality and Efficiency Asset Quality Metrics – GNPA Improved by 15bps on YoY basis 0.7% 1.1% 0.8% 0.7% 1.1% 0.9% 1.0% 0.7% 0.9% 1.5% 1.5% 1.4% 1.4% 1.2% 1.3% 1.1% 1.1% 1.1% FY21 FY22 FY23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 GNPA to AUM NNPA to AUM Cost to Inc
Slide 11: Consistent Improvement in Return Metrics
Consistent Improvement in Return Metrics Profit after Tax Increased by 37% in Q1 FY25 on YoY basis 27 31 37 44 38 40 42 44 56** 7,496 5,643 * 1,973 2,043 2,018 2,001 4,449 3,401 1,463 FY21 FY22 FY23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 PAT (INR Mn) Net Worth (INR Bn) Return on Assets Improve
Slide 12: Business Overview
BUSINESS OVERVIEW 101
Slide 13: Aadhar Housing Finance – Value Proposition
Aadhar Housing Finance – Value Proposition Focused on low-income housing segment1 Extensive branch and sales office network with geographical penetration across India Robust, analytics driven processes for underwriting and collections Diversified and granular portfolio Access to diversified funding
Slide 14: Key Milestones and Assets Under Management
Key Milestones Branches Listed 520+ 217 Assets Under Management (INR bn) Customer base 211 Customer base crossed 1,50,000; crossed 2,00,000 Merger of DHFL Vysya Housing Acquired by the Blackstone 172 Finance Limited with Pre-merger Group1 in June 2019 148 AHFPL 133 Pre-merger AHFPL opened AUM of pre
Slide 15: Pan-India Presence
Pan-India Presence Distribution Network Branch Distribution Diversified presence with a focus on cost control Top 2 States by AUM Top 5 States by AUM By State (Jun 30, 2024) Other States with Presence States not present in 536 Branches1 Uttar Pradesh 70 Branches Rajasthan 48 Branches Gujarat 64 Bran
Slide 16: Distribution Strategy
Distribution Strategy Agile branch network with each location catered to by an appropriate branch size, helping keep opex in control Deep Ultra Deep Impact Micro Impact Main Branches Branch Small Branches Micro Micro Branch AMs Branch Micro Branches Ultra Micro Small Main Small Ultra Micro Ultra-Mic
Slide 17: Comprehensive Credit Assessment Process
Comprehensive Credit Assessment Process Skilled In-house technical team has assisted in creating this Robust Credit Assessment Framework Credit Underwriting Centralized processing at regions – Salaried Customers Decentralized processing – other customers ▪ Regional processing units to process applic
Slide 18: Diversified Funding Sources
Diversified Funding Sources Distributed Funding Mix having Low Short-term Exposure Increasing focus on diversifying borrowings Continue to increase share of NHB refinancing and rely on long term sources of borrowings Others Others NCD 1% NCD 0% 21% 22% Mar-21 Jun-24 Banks 52% NHB Banks NHB 16% 62% 2
Slide 19: ALM Position
ALM Position Positive ALM Position Across Buckets Asset Liability Management – INR bn (as on Jun-24) 80% of Gross AUM and 78% of borrowings have floating interest rates 306.3 235.3 249.7 172.7 164.2 90.6 117.6 45.8 44.8 55.1 71.1 56.6 Upto 1 year Upto 3 years Upto 5 years Total 1 2 Assets Liabilitie
Slide 20: Agile Digital Infrastructure
Agile Digital Infrastructure Scalable Technology Platform Developed by TCS enabling smooth and agile Digital Processes Lending and Securitization Platform Digital Loan Loan Collection Mobility Onboarding Origination Servicing Management Solutions ■ Digitizing loan life cycle ■ Enabling credit team t
Slide 21: Technology Architecture
Technology Architecture Prospects Customers Aadhar Mitra Channel Partner Vendors Sales Users Collections Users Call Centre Users Aadhar Customer Fintech Sales On The Lead Verification Collections - Website / Service- Partner Go- Mobile CRM Service Generation Portal Mobile App Portal Mobile App Syste
Slide 22: Extensive Suite of Applications
Extensive Suite of Applications Robust customer engagement and partner empowerment through mobility apps; Focus on consistently improving employee experience through virtual office Sales Mobility App Customer Service Collections App Employee Super App Faster onboarding of Integrated HR app for all A
Slide 23: Business Transformation through Data Science
Business Transformation through Data Science Improving Asset Quality Increasing Operational Efficiencies Amplifying Yields & Mitigating Outward BT Increasing operational efficiencies by integrating Automating solutions for risk-based Enhancing the robustness of existing risk analytics for business p
Slide 24: Social Objectives at the Core of the Business
Social Objectives at the Core of the Business Aadhar has adopted and implemented a social objective across all aspects of the business Home Aspirations Portfolio focused on EWS / LIG segments AUM focused on EWS / LIG Customers 70% 81% 80% 76% 71% 70% Gross AUM with EWS/LIG customers FY21 FY22 FY23 F
Slide 25: Highly Experienced Board of Directors
Highly Experienced Board of Directors Highly experience board; Promoted by Blackstone1, one of the World’s leading Global Investment Firm O.P. Bhatt, Non-Executive Chairman & Independent Director Deo Shankar Tripathi, WTD2 and Executive Vice Chairman ▪ Former Chairman of State Bank of India ▪ Previo
Slide 26: Seasoned Management Team
Seasoned Management Team Experienced, cycle-tested and professional management team with strong corporate governance Rajesh Viswanathan, Chief Financial Officer ▪ Several years of experience in accounting, finance, strategy, planning, taxation, treasury, and investor relations ▪ Previously worked wi
Slide 27: Financial Information
FINANCIAL INFORMATION 251
Slide 28: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars (INR Mn) Q1 FY25 Q1 FY24 YoY Q4 FY24 QoQ Interest on loans 6,032.8 4,958.6 5,686.7 Other Interest and Investment Income 367.0 425.6 347.8 Non-Interest Income 412.4 331.7 513.3 Net gain on DA 319.3 218.3 370.3 Total Income 7,131.5 5,934.2 20% 6,918.1
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INRmn) June 30th, 2024 March 31st, 2024 Sources of Funds Share capital 4,265 3,948 Reserves and surplus 52,066 40,550 Borrowings 1,40,191 1,39,596 Trade payables & Other Liabilities 5,545 6,837 Total 2,02,067 1,90,931 Application of Funds Loan Assets 1,73,856
Slide 30: Annexures
ANNEXURES 281
Slide 31: ECL Provisions
ECL Provisions Particulars (INR Mn) June 30th, 2024 March 31st, 2024 June 30th, 2023 Gross Stage 1 1,67,231 1,63,054 1,38,581 % portfolio in Stage 1 95.0% 95.3% 94.3% ECL Provision Stage 1 543 538 553 ECL Provision % Stage 1 0.3% 0.3% 0.4% Gross Stage 2 6,437 6,189 6,205 % portfolio in Stage 2 3.7%
Slide 32: Industry Overview: Low Income Housing Finance
INDUSTRY OVERVIEW LOW INCOME HOUSING FINANCE 301
Slide 33: Indian Housing Finance Market
Indian Housing Finance Market ➢ Housing finance to log a CAGR of 13-15% in the long term between FY23 and FY26 ➢ India’s mortgage penetration is lower than other economies Housing Finance Market1 Housing Loans Outstanding (In INR tn) CAGR: 13-15% Key Growth Drivers 42-44 CAGR: 14% 32 29 Growing disp
Slide 34: Low-Income Housing Finance
Low-Income Housing Finance Favourable Demand-Supply Dynamics Immense latent potential in the housing market, driven by significant shortage Under-penetration of HFCs Focused on LIH … …Combined with Shortage of EWS & LIG Housing in India… Market share of HFCs focused on low-income housing 95% of hous
Slide 35: Glossary
Glossary Terminology Definition Terminology Definition ALM Asset Liability Management LIH Low Income Housing AM Aadhar Mitra LTV Loan to Value ATS Average Ticket Size NBFC Non-Banking Financial Company AUM Assets Under Company’s Management NCD Non-Convertible Debenture CAGR Compounded Annual Growth
Slide 36: Thank You
Aadhar Housing Finance Limited www.aadharhousing.com CIN: L66010KA1990PLC011409 For further information, please contact Sanjay Moolchandani – Head of FP&A Adfactors PR – Investor Relations Sanjay.Moolchandani@aadharhousing.com Snighter Albuquerque / Aashvi Shah Investor Relations – Aadhar Housing Fi
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