Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — 9M FY22 Earnings Presentation
36 slides from Aavas Financiers's earnings presentation, Feb 3, 2022
Slide 1: Cover letter to stock exchanges
A gvqs FINANCIERS LTD SAPNE AAPKE, SAATH HAM AARA Ref. No. AAVAS/SEC/2021-22/1056 Date: February 03, 2022 To, To, The National Stock Exchange of India Limited BSE Limited The Listing Department Dept, of Corporate Services Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalai Street,
Slide 2: Aavas Financiers Limited Investor Presentation - 9M FY22
AAVAS FINANCIERS LIMITED Investor Presentation - 9M FY22
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the "Presentation"), which have been prepared by Aavas Financiers Ltd. (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securit
Slide 4: Our Background
Our Background Commenced operations in 2011 Regulated by Reserve Bank of India ("RBI") from Jaipur, Rajasthan Supervised by National Housing Bank ("NHB") Currently being run by professional management team backed by Recognized by NHB for refinance marquee private equity players facility Kedaara Capi
Slide 5: Our Pillars of Strength
Our Pillars of Strength y Experienced Board of Directors y Professional Management Team y In-house Execution Model y Technology and Data Analytics y Improving Credit Ratings y Diversified Shareholding Base
Slide 6: Experienced Board of Directors
Experienced Board of Directors Sandeep Tandon Soumya Rajan Kalpana Iyer Chairman & Independent Director Independent Director Independent Director Qualifications: Bachelor's in Electrical Qualifications: Bachelor's in Mathematics & Qualifications: Chartered Accountant Engineering from University of S
Slide 7: Professional Management Team
Professional Management Team Sushil Kumar Agarwal - Managing Director & CEO Ghanshyam Rawat - Chief Financial Officer • 20+ years of experience in retail financial services • Experience in financial services & allied sectors • Prior associated with Kotak Mahindra Prime, ICICI Bank & Au Small • Prior
Slide 8: ESG Pillars for Sustainable Future
ESG Pillars for Sustainable Future Green Planet Responsible Lending Nurturing Workplace ■ Installing solar power projects of ■ Partnered with IFC to promote ■ Hired hearing-impaired people to 240KW across 2 community Green "Individual" Homes promote inclusivity in workforce locations ■ Lending gover
Slide 9: In-house Execution Model
In-house Execution Model 1. Reduction in average TAT (days) In-house execution model - Replicated across the states Turn around time is a key metric for employee incentives Lead generation and 21.1 Risk management Collections sourcing <U 13.1 E ■ Focused approach to directly ■ In-house underwriting
Slide 10: Technology and Data Analytics
Technology and Data Analytics Lead Generation Underwriting Operations Collections ■ Majority of the leads ■ Platform integration ■ E-disbursement & E- ■ Route optimization for are logged in through with credit bureaus repayment facility at all collection personnel the sourcing app ■ Quarterly scrub
Slide 11: Improving Credit Ratings
Improving Credit Ratings Long-Term Credit Rating Short-Term Credit Rating ICRA Limited revised the Long-Term rating outlook from AA-/Stable to AA-/Positive on 07th December 2021 Reaffirmed f \ CARE ICRA ICRA Dec-21 A1+ A A -/ A A -/ Dec-21 Dec-21 Positive Positive CARE Dec-21 A1+ A/ INDIA RATINGS Ma
Slide 12: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 31st December 2021 31st December 2021 Investor Details % Holding Others, 4.33% Capital GroupA 8.36 g ic a 5.90 Wasatch Global InvestorsA 5.49 KED A A RA Nomura Asset Management 3.86 UTI Asset ManagementA* 3
Slide 13: Size of Opportunity
Size of Opportunity Indian Housing Finance Housing Market (^ Trn) Market Size ^ 22.7 Trn (as on Jun-21) 22.7 20.8 22-5 YoY Growth +10% (as on Jun-21) Banks -10%, HFCs & NBFCs -11% Market Share Banks - 68% HFCs& NBFCs -32% (as on Jun-21) Mortgage Penetration (%) Affordable HFCs Affordable segment Cre
Slide 14: Measures from Government and Regulator
Measures from Government and Regulator Continued Pause in Policy Rate RBI's MPC voted to maintain status-quo (repo rate @ 4%) even in the December meeting and continued with its accommodative stance for as long as necessary to revive & sustain growth on a durable basis. Resolution Framework 2.0 Lend
Slide 15: Financial Performance contents
Financial Performance y/ Key Business Parameters Y Geographical Distribution Y Spreads and Margins ^ Asset Quality y Liability Franchise */ Key Ratios
Slide 16: Performance Highlights
Performance Highlights AUM (K Mn) Disbursement (K Mn) Gross Stage 3 (%) 88,226 16,441 Dec-20 Dec-21 9MFY21 9MFY22 PAT* (K Mn) NIM (%) Average AmountAper Disbursed Loan Account in 9MFY22 ^ 0.98 Mn 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 Data as per Ind-AS * PAT includes Other Comprehensive Income A
Slide 17: Healthy Business Growth
Healthy Business Growth AUM (^ Mn) Disbursements (^ Mn) PAT* (^ Mn) Data as per Ind-AS * PAT includes Other Comprehensive Income 16
Slide 18: AUM Break-up
AUM Break-up Agvqs Product Category Occupation Category Customer Category ATS : ^ 0.84 Mn ATS : ^ 0.67 Mn ATS : ^ 0.86 Mn 0.2% ATS : ^ 7.83 Mn 31-Dec-20 ATS : ^ 0.92 Mn ATS : ^ 0.83 Mn ATS : ^ 0.70 Mn ATS : ^ 0.89 Mn ATS : ^ 0.86 Mn 0.1% ATS : ^ 6.70 Mn 31-Dec-21 ATS : ^ 0.93 Mn ATS : ^ 0.84 Mn Reta
Slide 19: Disbursement Break-up - Product Category
Disbursement Break-up - Product Category 9M FY21 ATS : ^ 0.82 Mn ATS : ^ 0.79 Mn ATS : ^ 1.07 Mn ATS : ^ 1.09 Mn Disbursement include 8.4% of mortgaged-backed MSME Loans Disbursement include 12.7% of mortgage-backed MSME Loans classified under Other Mortgage Loans classified under Other Mortgage Loa
Slide 20: Geographical Distribution
Geographical Distribution State Branches Operations Commenced in Rajasthan 96 2012 Maharashtra 44 2012 Gujarat 40 2012 Madhya Pradesh 40 2013 Delhi 6A 2013 Haryana & Punjab 16 2017 Chhattisgarh 7 2017 Uttar Pradesh 21 2018 Uttarakhand 9 2018 Himachal Pradesh 4 2020 Orissa 4 2021 Karnataka 11 2021 To
Slide 21: Yields, Cost of Borrowing and Spreads
Yields (%) • COB (%) Spreads (%) Yields (%) • COB (%) Spreads (%) 18.13% 13.63% 13.62% 13.52% 13.42% 13.16% 12.99% 12.90% 12.79% 8.44% 8.10% 7.90% 7.68% 7.400% 7.25% 7.17% 7.03% Consistent Spreads ---------------- • ----------- - 5.52% 5.62% 5.74% 5.76% 5.74% 5.73% 5.76% nn 5.85% 5.76% 5.08% 5.22% 5
Slide 22: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) 4.03% 4.05% 3.75% 8 . 10% 8.69% 8.66% 8.16% 3.17% 3.38% 3.28% 3 42% 3.38% 3MFY20 H1FY20 9MFY20 FY20 3MFY20 H1FY20 9MFY20 FY20 3MFY20 H1FY20 9MFY20 FY20 7.42% 7.71% 3.22% 3.49% 6.15% 6.82% 2.55% 2.89% 2.62% 2.80% 2.82% 3 .01% 3MFY21 H1FY21 9MFY21 FY
Slide 23: Asset Quality
Asset Quality Gross Stage 3 (%) Net Stage 3 (%) 1.72% # includes 0.89% with 1.33% 0.86% 0.72% 0.71% 0.72% 0.32% 0.32% Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 1+DPD (%) Segment-wise Gross Stage 3 (%) Dec-20 Dec-21 12.67% 1.70% 6.20% 6.37% 6.45% Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-2
Slide 24: Robust Liability Management
Robust Liability Management Diversified Funding Mix Loan Assets & Borrowings (K Mn) As on Dec-21 As on Dec-21 29 Lenders Floating Fixed Equity ■ Terms Loans Diversified Mix ■ Assignment No exposure 106,126 106,126 to Commercial Papers ■ NHB Refinancing Incremental 9M FY22 borrowings ■ NCDs ^ 26,790
Slide 25: ALM Surplus
ALM Surplus Surplus Management* Mn) Average tenor of outstanding borrowing (months) As on Dec-21 143 123 Mar-17 Assets Liabilities Surplus * Data as per Ind-AS 24
Slide 26: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (^ Mn) As on Dec-21 Cash & Cash Equivalents 13,220 High Quality Un-availed CC Limits 1,140 Liquidity of Documented & Un-availed Sanctions from NHB 7,500 ^ 21,860 Mn Documented & Un-availed Sanctions from other Banks 3,570 Total Liquidity Position 25,430 Par
Slide 27: Net Securitization Volume
Net Securitization Volume ^ 6,802 Mn ^ 6,647 Mn ^ 5,496 Mn ^ 4,730 Mn 4 ------------------------------------------------------------------------ 4 <■ ------------------------------------------------------------------------ ► 4 --------------------------------------------------------------------- ► 4
Slide 28: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (^) 13.03% 12.24% 12.70% Dec-19 Dec-20 Dec-21 9MFY20 9MFY21 9MFY22 Capital Adequacy Ratio (%) Earning Per Share* (^) Tier I Tier II 57.88% 30.4 51.12% 50.90% 23.9 25.5 2.37% 1.86% Dec-19 Dec-20 Dec-21 9MFY20 9MFY21 9MFY22 Data of Capital Adequacy Rat
Slide 29: Annexures
Annexures Quarterly and Nine Monthly Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Networth Reconciliation 28
Slide 30: Quarterly Profit & Loss Statement
Quarterly Profit & Loss Statement Agvqs Particulars (^ Mn ) Q3 FY22 Q3 FY21 Q2FY22 Interest Income on Loans (incl. Processing Fee) 2,858.3 2,539.2 12.6% 2,826.6 1.1% Interest Income on Fixed Deposits 180.0 197.3 144.4 Reversal Income on Earlier Assigned Loans (208.6) (159.1) (183.9) Upfronting Incom
Slide 31: Nine Monthly Profit & Loss Statement
Nine Monthly Profit & Loss Statement Particulars (^ Mn ) 9M FY22 9M FY21 Y-o-Y Interest Income on Loans (incl. Processing Fee) 8,353.0 7,181.9 16.3% Interest Income on Fixed Deposits 466.5 589.1 Reversal Income on Earlier Assigned Loans (572.3) (476.9) Upfronting Income on Fresh Assigned Loans 783.0
Slide 32: Balance Sheet
Balance Sheet Particulars Mn ) 31-Dec-21 31-Mar-21 Sources of Funds Share Capital 789.3 785.0 Reserves & Surplus 25,866.1 23,229.0 Borrowings 72,291.1 63,454.2 Deferred Tax Liability (Net) 282.1 285.2 Other Liabilities & Provisions 2,366.2 1,847.0 Total 101,594.8 89,600.5 Application of Funds Loan A
Slide 33: PAT Reconciliation
PAT Reconciliation Particulars (^ Mn ) 9M FY22 9M FY21 Y-o-Y Q3 FY22 Q3 FY21 Y-o-Y Net Profit as per IGAAP 2,334.4 1,998.5 16.8% 786.5 728.1 8.0% Add / (Less): Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial assets
Slide 34: ECL Provisions
ECL Provisions Particulars (^ M n) 31-Dec-21 30-Sep-21 31-Dec-20 Gross Stage 1 80,721.0 76,921.2 66,795.4 During the financial year, resolution plan has been % portfolio in Stage 1 94.34% 92.93% 95.18% implemented fo r certain borrower accounts as per RBI's ECL Provision Stage 1 203.7 203.7 172.7 Re
Slide 35: Networth Reconciliation
Networth Reconciliation Particulars Mn ) 31-Dec-21 Net worth as per previous GAAP 24,904.0 Adjustments increasing/(decreasing) net worth as reported under previous GAAP: Adoption of EIR for amortisation of Income and expenses - financial assets at amortised cost / net interest on credit impaired loa
Slide 36: Contact Us
Contact Us Aavas Financiers Limited (Formerly known as Au HOUSING FINANCE LIMITED) CIN:L65922RJ2011PLC034297 Mr. Himanshu Agrawal investorrelations@aavas.in www.aavas.in 35