Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q2 FY24 Earnings Presentation
55 slides from Mas Financial Services's earnings presentation, Nov 1, 2023
Slide 1: Exchange filing cover letter for investor presentation
MFSL/SEC/EQ/2023/91 November 01, 2023 To, To, The Manager, General Manager BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block Mumbai – 400001 Bandra-Kurla Complex Bandra (East) Mumbai – 400051 Scrip Code: 540749, 947381 Tr
Slide 2: Investor Presentation – Q2FY24
INVESTOR PRESENTATION – Q2FY24 2022-23 1995-96
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of MAS Financial Services Limited (together with its subsidiary MAS Rural Housing & Mortgage Finance Limited). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation
Slide 4: Table of Contents
Table of Contents 1 MAS AT A GLANCE 04 2 GROWTH STORY 06 3 STRONG FUNDAMENTALS 10 4 STANDALONE FINANCIAL REVIEW 17 5 MAS RURAL HOUSING & MORTGAGE FINANCE LIMITED - SUBSIDIARY 26 6 FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG) 32 MAS Financial Services Limited 7 UNDERSTANDING MAS 39 8 WAY FORWARD
Slide 5: MAS at a Glance
MAS at a Glance MAS Financial Services was established in 1995 with an objective: “To address the financial needs of the underserved segments of the country” 25+ Diversified Product Portfolio Years of Endeavours Micro Enterprise Loans SME Loans ₹90,462 Mn 7 171 Standalone AUM States and NCR of Delhi
Slide 6: Strong Distribution Network
Strong Distribution Network MAS has steadily entered adjacent geographies 171 1 Delhi 33 Rajasthan Branches 62 36 1 Gujarat Madhya Pradesh Chhattisgarh Pan India Network presence Maharashtra through 29 MAS Financial Services Limited 163 7 NBFC Partners Karnataka 2 Tamil Nadu 5 Map not to scale. For
Slide 7: Growth
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO
Slide 8: Journey of Quarters
Journey of 112 Quarters Asset Under Management (AUM) 80,926 (In ₹ Mn) 62,468 53,384 59,663 53,724 41,570 31,561 25,650 20,052 10,123 13,910 2,682 3,884 5,118 6,909 20 1,510 2,312 2,597 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q 104Q 108Q 112Q Profit After Tax (PAT) (In ₹ Mn) MAS
Slide 9: Growing Consistently and Steadily
Growing Consistently and Steadily - Our Growth Journey of Last 16 Years Since Our First Capital Raise… Despite various micro and macro headwinds Track record of high-quality portfolio with Net Maintained healthy return on assets including demonetisation, GST, NBFC Stage 3 Assets below 2% over the pe
Slide 10: Best-in-Class Asset Quality Across Cycles
Best-in-Class Asset Quality Across Cycles and Resilience Through Systematic Shocks Catalyst in growth of entrepreneurs, not creating just borrowers GROSS STAGE 3 ASSETS NET STAGE 3 ASSETS 7.2% 6.4% 2nd Wave 1st Wave 2.30% 2.35% 2.28% 2.27% 2.26% 2.21% 2.23% 2.15% 2.13% 2.17% 1.94% 1.70% 1.56% 1.39%
Slide 11: Strong Fundamentals
Strong Fundamentals
Slide 12: Diversified Product Offerings Presenting Significant Growth Opportunities
Diversified Product Offerings Presenting Significant Growth Opportunities MAS focuses on serving the underserved credit needs of mid and low-income group segments Micro-Enterprise Loans SME Loans Two-Wheeler Loans Commercial Salaried Vehicle Loans Personal Loans 42,604 Mn 32,329 Mn 6,239 Mn 5,565 Mn
Slide 13: Asset Under Management – by Product Category
Asset Under Management – by Product Category Micro-Enterprise loans(MEL) SME loans 2-Wheeler loans Commercial Vehicle loans Salaried Personal Loans 90,462 3,724 80,926 5,565 3,049 71,381 6,239 3,725 5,544 1,334 62,468 2,736 4,698 53,724 3,452 32,329 3,774 2,029 29,867 3,267 26,716 22,748 18,724 MAS
Slide 14: Asset Under Management – by Product Category (YoY)
Asset Under Management – by Product Category (In ₹ Mn.) Sep 23 vs. Sep 22 Micro Enterprise Loans SME Loans Two Wheeler Loans Commercial Vehicle Loans Salaried Personal Loans * 18.68% YoY 21.01% YoY 32.80% YoY 103.44% YoY 179.13% YoY 42,604 35,897 6,239 32,329 5,565 MAS Financial Services Limited 4,6
Slide 15: Asset Under Management – Distribution Channel Wise
Asset Under Management – Distribution Channel Wise Increasing share of Direct Retail Distribution (%) 38 41 37 48 58 62 59 63 52 MAS Financial Services Limited 42 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 (₹ Mn) AUM 53,724 62,468 80,926 71,381 90,462 Retail Asset Channel Direct Retail Distribution 14
Slide 16: Leveraging Technology
Leveraging Technology MAS is integrating technology across all verticals of its operations Collaboration with 25+ APIs, enabling authentic data sourcing Origination Decisioning Operations Disbursement & Collection • Centralised onboarding and OTP • Pre-set rule engines to determine credit • Remote a
Slide 17: Strong Liability Management
Strong Liability Management The composition of our The Company continues to Sources of fund as on September 30, 2023 (%) liability mix ensures healthy demonstrate its capability of ALM and well diversified efficient liability management resource mix. The cashflow in all the cumulative buckets Around
Slide 18: Standalone Financial Review (Q2FY24)
Standalone Financial Review (Q2FY24)
Slide 19: Key Highlights – Q2 FY24
Key Highlights – Q2 FY24 Asset Under Management (AUM) Profit After Tax (PAT) Return on Avg. Net Worth* ₹90,462 Mn 26.73% (Sep-22: ₹71,381 Mn) ₹600 Mn 23.10% (Q2 FY23: ₹488 Mn) 16.11% Return on Avg. Balance Sheet Assets* Net Interest Income (NII) Cost of Borrowing* (COB) 2.93% 1,520 Mn 28.04% 84bps ₹
Slide 20: Financial Performance – Q2 FY24
Financial Performance – Q2 FY24 Assets Under Management (AUM) (In ₹ Mn) Net Worth (In ₹ Mn) On & Off Book AUM (%) 90,462 16,310 80,926 15,057 13,406 13,966 16 71,381 25 19 19 22 12,050 62,468 53,724 75 81 81 84 78 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Mar-21 Mar-22 Ma
Slide 21: Financial Performance – Q2 FY24
Financial Performance – Q2 FY24 Revenue (In ₹ Mn) Net Interest Income (NII) (In ₹ Mn) 9,491 4,743 6,571 3,375 5,599 2,954 2,982 1,520 2,296 1,187 FY21 FY22 FY23 Q2 FY23 Q2 FY24 FY21 FY22 FY23 Q2 FY23 Q2 FY24 Operating Expense (In ₹ Mn) Profit After Tax (PAT) (In ₹ Mn) 1,566 2,010 MAS Financial Servi
Slide 22: Financial Performance – Q2 FY24
Financial Performance – Q2 FY24 Optimized cost structure Operating Expense Ratio Operating Expense as % of Gross Income 18.14% 2.41% 16.50% 16.24% 2.18% 2.22% 14.02% 1.59% 10.37% 1.02% FY21 FY22 FY23 Q2 FY23 Q2 FY24 FY21 FY22 FY23 Q2 FY23 Q2 FY24 Efficiently maintaining the quality of assets Gross S
Slide 23: Financial Performance – Q2 FY24
Financial Performance – Q2 FY24 Strongly Capitalized Debt Equity Ratio Capital Adequacy Ratio 26.85% 26.35% 25.25% 3.92 4.18 4.12 24.14% 25.17% 3.39 3.04 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Healthy Coverage Interest Coverage Ratio MAS Financial Services Limited 1.60
Slide 24: Asset Under Management – Credit Quality – DPD
Asset Under Management – Credit Quality 1 – 30 DPD 31 – 60 DPD 61 – 90 DPD 91 –120 DPD > 120 DPD 1.59% 1.67% 1.65% 0.35% 1.69% 1.59% 1.58% 1.25% 0.48% 0.52% 0.54% 0.58% 0.49% 0.57% 0.68% 0.51% 0.82% 1.22% 0.27% 1.13% 0.86% 0.86% MAS Financial Services Limited 0.87% 0.99% 1.87% 1.81% 1.91% 1.94% 1.42
Slide 25: Credit Quality
Credit Quality (In ₹ Mn.) Sep-23 Sep-22 Particulars Sep-23 Sep-22 Particulars AUM Provision AUM Provision Gross Stage 1 And Stage 2 Assets As % Of On Book Assets 97.78% 97.81% Stage 1 67,714.71 191.68 57,619.18 188.74 Stage 1 & Stage 2 Assets (Standard Assets) Provisioning 0.46% 0.44% Stage 2 891.82
Slide 26: Financial Statement: FY21 to H1FY24
Financial Statement: FY21 to H1FY24 (In ₹ Mn.) PROFIT & LOSS STATEMENT BALANCESHEET STATEMENT Particulars FY 2021 FY 2022 FY2023 H1FY24 Particulars Mar-21 Mar-22 Mar-23 Sep-23 ASSETS Total Revenue 5,599 6,571 9,491 5,782 Financial assets 50,869 59,763 75,724 84,451 Loans 38,051 45,538 59,102 64,079
Slide 27: MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
Slide 28: About MRHMFL
About MRHMFL MAS is targeting affordable housing finance segment through its subsidiary MAS Rural Housing & Mortgage MRHMFL provides loans for MRHMFL provides housing loans in With its continued focus on the rural Finance Limited (“MAS Housing” or purchase of new and old houses, rural and semi-urban
Slide 29: Financial Performance – Q2 FY24
Financial Performance – Q2 FY24 Assets Under Management (AUM) (In ₹ Mn) Net Worth (In ₹ Mn) 851 871 5,009 4,133 619 638 3,799 3,141 540 2,832 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Borrowing (In ₹ Mn) Revenue (In ₹ Mn) 3,375 438 MAS Financial Services Limited 2,916 352
Slide 30: Financial Performance – Q2 FY24
Financial Performance – Q2 FY24 Profit After Tax (PAT) (In ₹ Mn) Net Interest Income (NII) (In ₹ Mn) 63 212 49 160 141 29 25 72 19 62 FY21 FY22 FY23 Q2 FY23 Q2 FY24 FY21 FY22 FY23 Q2 FY23 Q2 FY24 Gross Stage 3 Assets Net Stage 3 Assets MAS Financial Services Limited 0.79% 0.70% 0.59% 0.55% 0.54% 0.5
Slide 31: Liability Management
Liability Management Sources of Fund as on 30th September 2023 The composition of our liability mix The Company continues to (%) ensures healthy ALM and well demonstrate its capability of efficient diverse resource mix. The cashflow liability management. in all the cumulative buckets is positive. NH
Slide 32: Credit Quality
Credit Quality (In ₹ Mn.) Sep-23 Sep-22 Particulars Sep-23 Sep-22 Particulars AUM Provision AUM Provision Stage 1 And Stage 2 Assets As % Of On Book Assets 99.13% 99.28% Stage 1 3,716.44 3.40 2,762.95 2.81 Stage 1 And Stage 2 Assets ( Standard Assets) 0.38% 0.42% Provisioning Stage 2 213.29 11.39 16
Slide 33: Focus on Environment, Social & Governance (ESG)
E S G Environment Social Governance FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG)
Slide 34: Environmental Stewardship
Environmental Stewardship MAS endeavours to create awareness The management of MAS Financial amongst all the stakeholders on the Services Limited (MAS) believes in importance of environment conservation Environmentally Conscious approach for & protection. The company also all business & operational
Slide 35: Enhancing Social Impact (1/3)
Enhancing Social Impact (1/3) SHIKSHA PROTSAHAN “Caring for communities is a way of life” ✓ MAS Financial Services Ltd strongly BLOOD MENSTRUAL HYGIENE believes in giving back to society and DONATION PROGRAMME has always been actively involved in various Corporate Social Responsibility activities. ✓
Slide 36: Enhancing Social Impact (2/3)
Enhancing Social Impact (2/3) SHIKSHA AROGYA MENSTRUAL HONOURING THE HYGIENE PROTSAHAN ABHIYAN VALIANT SOLDIERS PROGRAMME The Company has identified various Amid the COVID – 19 crises, the The Company’s aim is to increase The company has donated bright students from more than 30 company organized a
Slide 37: Enhancing Social Impact (3/3)
Enhancing Social Impact (3/3) Shiksha Protsahan Arogya Abhiyan MAS Financial Services Limited 36 Blood Donation Welfare of War Widows’
Slide 38: Strict Governance Compliance
Strict Governance Compliance The management Strict compliance Rich experienced Regular monitoring Adequate Board approved of MAS Financial with the regulations Board of the & continuous processes, policies on Services Limited of SEBI, RBI and Company upgradation of operational & IT Corporate adheres
Slide 39: Governance Framework
Governance Framework Board of Directors Advisory Committee (7 Directors including 5 Independent Directors) to the Board Committee Chaired by Other Committees Independent Directors ֍ Audit Committee ֍ Risk Management Committee ֍ Finance Committee ֍ Stakeholders Relationship ֍ Credit Committee MAS Fin
Slide 40: Understanding MAS
Understanding MAS
Slide 41: About MAS
About MAS VISION MISSION BELIEF To be one of the most efficient To constantly endeavor, to attain excellence and create “We have miles to go & Promises to keep……” distributors of financial services and a very wide Financial distribution network and to be “Together we can and we will” create value on
Slide 42: Visionary Leadership
Visionary Leadership Experienced Promoters Mr. Kamlesh Chimanlal Late Mr. Mukesh Gandhi, 57, is the Chimanlal Gandhi, a Co- One of the founder and former Founder, Chairman, and Managing Director Director (Finance) at highest promoter MAS Financial of MAS with over two Services Limited, shareholding
Slide 43: Governance by an Independent Board; Guidance from Industry Leaders
Governance by an Independent Board; Guidance from Industry Leaders Corporate Advisory Committee Mr. Bala Bhaskaran Mr. Chetan Ramniklal Shah Mr. Umesh Rajanikant Shah Dr. Rajiv Kumar Mr. TT Srinivasaraghavan Independent Director Independent Director Independent Director Former Vice Chairman of Niti
Slide 44: Robust Risk Management
Robust Risk Management Portfolio & Asset Quality Policies Process • MAS has well diversified products • MAS has comprehensive policies • MAS endeavours to have processes to portfolio and wide geographical presence framework for all the critical functions follow the laid down core policies. (through
Slide 45: Robust Credit Assessment
Robust Credit Assessment MAS aims to give credit where it is due with the dictum of adherence and adaptability Comprehensive Credit Assessment Credit Assessment Process Overview by Product Business loans require A assessment of business viability, cash flow, and profitability Income Profile Salaried
Slide 46: Unique and Robust Distribution Network Through NBFC Partners
Unique and Robust Distribution Network Through NBFC Partners Aim & Our Understanding Impact Efficient last mile delivery of credit across Value chain approach has proven to be the MAS NBFCs its product range namely MEL, SME, 2 most potent one to solve informality • Widens its network while maintaini
Slide 47: Sharpening the Learning Curve
Sharpening the Learning Curve Our proven track record of more than ₹22,000 cr cumulative disbursement through NBFC partners with total loss less than 0.50% over a decade across various tough periods assures our confidence on the distribution model. Our Learning Curve is Further Strengthened by Credi
Slide 48: Way Forward
Way Forward
Slide 49: Key Growth Strategies for Consistent Growth
Key Growth Strategies for Consistent Growth Focus towards direct lending Growth Drivers Aim to grow AUM by Share of business from direct Housing, SME and Wheels 20% to 25% over the distribution will increase while portfolio to be key growth medium to long-term NBFC partnerships business will drivers
Slide 50: Enablers for Consistent Growth
Enablers for Consistent Growth Successful Track Record Highly Capitalised Robust Liability Management • Successfully withstood multiple • Highly capitalised for future growth. • Cash & bank balances of ~ ₹11,216 Mn. as headwinds over the years Sufficient capital to continue the growth on 30th Septem
Slide 51: Shareholding Profile
Shareholding Profile
Slide 52: Marquee FIIs and DIIs Shareholders
Marquee FIIs and DIIs Shareholders Shareholding as on 30th September 2023 Marquee Investors (%) Others (Including AIFs, Fis, Banks & Individuals) Foreign Portfolio Investor 8.62% 2.01% Trust 7.40% Mutual Fund 8.24% MAS Financial Services Limited 73.73% Promoter and Promoter Group 51
Slide 53: Events & Milestones
Events & Milestones
Slide 54: Major Events & Milestones
Major Events & Milestones Note: As per Calendar Year ✓ On incorporation, commenced retail finance operations with ✓ Bank loan rating was upgraded to ‘IND A’ with ‘Stable 1995 Two-wheeler and Micro-Enterprise loans 2016 1995 outlook ✓ Raised subordinate debentures of ₹ 400 Mn ✓ Motilal Oswal infused
Slide 55: Best Wishes
MAS Financial Services Limited Registered Office 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009 www.mas.co.in Investor Contact Best Wishes Mr. Ankit Jain Chief Financial Officer 079-41106682 ankit_jain@mas.co.in Mr. Meet Chande Investor Relations Manager 079-41106551 meet_chande@ma
MAS Financial Services — Q2 FY24 Earnings Presentation on 6ix