Aadhar Housing Finance Ltd · NSE:AADHARHFC
Aadhar Housing Finance — Q4 FY24 Earnings Presentation
35 slides from Aadhar Housing Finance's earnings presentation, May 30, 2024
Slide 1: Exchange cover letter for investor presentation
Date: 30th May, 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 Mumbai- 400001 Complex Scrip Code: 544176 Bandra (E), Mumbai – 400 051 Symbol: AADHARHFC Kind Attn.: Listing C
Slide 2: Aadhar Housing Finance Limited Investor Presentation – Q4FY24
Aadhar Housing Finance Limited Investor Presentation – Q4FY24
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: Snapshot of the Company
Snapshot of the Company scan toca
Slide 5: Aadhar Housing Finance – Milestones
Aadhar Housing Finance – Milestones Customer base crossed 2,00,000 FY22 FY25 Reached ~INR148bn AUM FY24 Listed on BSE Branches crossed 520+ and NSE Reached ~INR211bn AUM Customer base crossed 1,50,000 FY20 FY19 Acquired by the Blackstone Group1 in June 2019 AUM crossed INR100bn Raised c.INR7bn throu
Slide 6: Aadhar Housing Finance – At a Glance
Aadhar Housing Finance – At a Glance HFC focused on low-income housing segment in India, with a seasoned business model Scale Granular book Asset quality Distribution Liability profile c.INR211bn 100% Secured 1.08% c.INR71bn AA / Stable Mar-24 AUM Retail book GNPA FY24 CARE / ICRA Long (Mar-24) (Mar
Slide 7: Aadhar Housing Finance – Key Highlights
Aadhar Housing Finance – Key Highlights 1 Focused on low-income housing segment1 2 Extensive branch and sales office network with geographical penetration across India 3 Robust, analytics driven processes for underwriting and collections 4 Diversified and granular portfolio 5 Access to diversified f
Slide 8: 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 9: 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 10: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (May 24th, 2024) Key Institutional Investors Investor % Holding Promoter (Blackstone1) 76.5% Top DIIs (Banks, MFs, AIFs and Insurance) Individuals Others 4.1% Quant Mutual Fund^ 1.2% 7.3% ICICI Bank 1.1% Corporates HDFC Mutual Fund^ 0.8% 2.9% ICICI Prudentia
Slide 11: Low Income Housing Finance – Industry Overview
Low Income Housing Finance – Industry Overview
Slide 12: 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 13: 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 14: Key Highlights
Key Highlights
Slide 15: Introduction to Aadhar
Introduction to Aadhar Housing finance company focused on the low-income housing segment Aadhar Housing Finance – Overview Strong AUM Growth Disbursements Trend INRbn INRbn 20% growth in ● HFC focused on low-income housing segment with ticket size less 23% growth in FY24 71 than INR1.5mn, with an AU
Slide 16: 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 UP Other States with Presence Others 13% By State (Mar 31, 2024) 17% States not present in 523 Branches1 KTK GJ 5% 12% Uttar Pradesh Mar-24 69 Branch
Slide 17: Backed by a Nimble Distribution Strategy
...Backed by a Nimble 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 Branch Main Branches Micro Micro Small Branches Branch Branch AMs Micro Branches Ultra Ultra Micro Small Main
Slide 18: Comprehensive Credit Assessment by In-house Technical Team
Comprehensive Credit Assessment by In-house Technical Team Credit Underwriting Centralized processing at regions – Salaried Customers Decentralized processing – other customers ▪ Regional processing units to process applications for ▪ Branch led processing through credit managers salaried customers
Slide 19: Distributed Funding Mix having Low Short-term Exposure
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% 20% Mar-21 Mar-24 Banks NHB 55% NHB Banks 16% 25% 62% Focus on rationalizing
Slide 20: With Positive ALM across Buckets
...With Positive ALM across Buckets Asset Liability Management – INR bn (as on Mar-24) 79% of Gross AUM and 79% of borrowings have floating interest rates 293.8 239.5 215.8 155.5 164.9 118.7 77.3 48.0 36.8 50.9 54.3 29.3 Upto 1 year Upto 3 years Upto 5 years Total Assets 1 Liabilities 2 Gap High-lev
Slide 21: Scalable Technology Platform and Digital Processes
Scalable Technology Platform and Digital Processes Lending and Securitization Platform (Developed by TCS) Digital Loan Loan Collection Mobility Onboarding Origination Servicing Management Solutions ▪ Digitizing loan life cycle ▪ Enabling credit team to ▪ Disbursal and repayment ▪ Enabling real time
Slide 22: Complete Suite of Applications for Managing the Entire Loan Life Cycle
Backed by Complete Suite of Applications for Managing the Entire Loan Life Cycle 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
Slide 23: Focus on Business Transformation through Data Science
Focus on Business Transformation through Data Science Improving Asset Quality Increasing Operational Efficiencies Amplifying Yields & Mitigating Outward BT Enhancing the robustness of existing risk Increasing operational efficiencies by integrating Automating solutions for risk-based analytics for c
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 Portfolio focused on EWS / LIG segments Home Aspirations AUM focused on EWS / LIG Customers 81% 80% 76% 71% 71% Gross AUM with EWS/LIG customers FY21 FY22 FY23 FY24
Slide 25: Business and Financial Performance
Business and Financial Performance
Slide 26: Strong Disbursement and AUM Growth
Strong Disbursement and AUM Growth… Disbursement – By Product (INRbn) 20% Growth 71 22 20 59 17 17 20 7 5 14 40 17 5 5 35 3 5 9 51 15 15 42 11 12 12 30 31 FY21 FY22 FY23 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 AUM – By Product (INRbn) 23% Growth 211 211 199 189 172 172 179 53 53 148 44 48 133 3
Slide 27: With Stable Yields and Increasing Spreads
…With Stable Yields and Increasing Spreads… Yields, Cost of Borrowings and Spreads (%) 13.8% 13.8% 14.1% 14.0% 13.7% 13.2% 12.8% 12.8% 12.8% 8.2% 7.6% 7.7% 7.6% 7.8% 7.7% 7.2% 7.0% 7.2% 6.2% 6.4% 6.2% 5.8% 6.1% 6.0% 5.6% 5.6% 5.0% FY21 FY22 FY23 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Avg. Yiel
Slide 28: And Improving Asset Quality and Efficiency
…And Improving Asset Quality and Efficiency… Asset Quality Metrics 0.7% 1.1% 0.8% 0.7% 0.8% 1.1% 0.9% 1.0% 0.7% 1.5% 1.5% 1.4% 1.4% 1.2% 1.2% 1.1% 1.1% 1.1% FY21 FY22 FY23 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 GNPA to AUM NNPA to AUM Cost to Income 41.9% 40.8% 38.1% 38.8% 37.5% 35.8% 36.3% 35
Slide 29: Leading to Consistent Improvement in Return Metrics
…Leading to Consistent Improvement in Return Metrics Profit after Tax1 and Net Worth 27 31 37 44 37 38 40 42 44 7,496 5,643 1,973 2,043 2,018 4,449 1,603 1,463 3,401 FY21 FY22 FY23 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 PAT (INRmn) Net Worth (INRbn) Return on Equity and Return on Assets 2.6% 3
Slide 30: Profit and Loss Statement
Profit and Loss Statement Particulars (INRmn) Q4 FY24 Q4 FY23 YoY Q3 FY24 FY24 FY23 YoY Interest on loans 5,686.7 4,413.0 29% 5,528.2 21,480.7 16,748.5 28% Other Interest and Investment Income 347.8 428.2 330.6 1,436.3 1,332.2 Non-Interest Income 513.3 307.5 507.3 1,743.8 1,050.2 Net gain on DA 370.
Slide 31: Balance Sheet
Balance Sheet Particulars (INRmn) March 31st, 2024 March 31st, 2023 Sources of Funds Share capital 3,948 3,948 Reserves and surplus 40,550 33,029 Borrowings 1,39,596 1,21,535 Trade payables 1,086 805 Other Liabilities 5,751 6,863 Total 1,90,931 1,66,179 Application of Funds Loan Assets 1,69,029 1,38
Slide 32: Annexure
Annexure GHAR NEGA, TO DESH GANEGA,
Slide 33: ECL Provisions
ECL Provisions Particulars (INRmn) March 31st, 2024 December 31st, 2023 March 31st, 2023 Gross Stage 1 1,63,054 1,52,812 1,32,944 % portfolio in Stage 1 95.3% 94.8% 94.7% ECL Provision Stage 1 538 539 529 ECL Provision % Stage 1 0.3% 0.4% 0.4% Gross Stage 2 6,189 6,143 5,806 % portfolio in Stage 2 3
Slide 34: 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 35: Thank You
Thank You Aadhar Housing Finance Limited www.aadharhousing.com CIN: U66010KA1990PLC011409 For further information, please contact Sanjay Moolchandani – Head of FP&A Sanjay.Moolchandani@aadhahousing.com Investor Relations – Aadhar Housing Finance Limited investorrelations@aadharhousing.com 28
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