Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q4 FY21 Earnings Presentation
43 slides from Mas Financial Services's earnings presentation, May 19, 2021
Slide 1: Exchange filing cover letter
fll{J\� FINANCIAL SERVICES LIMITED M FSL/SEC/EQ/2021/28 May 19, 2021 To, To, The Manager, General Manager BSE Limited National Stock Exchange of India Limited Phtroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block Mumbai- 400001 Bandra-Kurla Complex Bandra (East) Mumbai-400051 S
Slide 2: Investor Presentation – Q4 FY21
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Slide 3: Disclaimer
Disclaimer �- ENDEAVO�S 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
Slide 4: Table of Content
Table of Content � ENDEAVO�S 04 MAS AT A GLANCE 05 JOURNEY OF 104 QUARTERS 06 STRONG FUNDAMENTALS 07 NAVIGATING COVID 19 PANDEMIC 09 PRODUCT OFFERINGS 11 LIABILITY MANAGEMENT 12 GOING FORWARD 13 STRENGTHENING THE FUNDAMENTALS… 14 FINANCIAL REVIEW 21 CREDIT QUALITY 24 REPUTED MARQUEE INVESTORS 25 FIN
Slide 5: MAS at a Glance
MAS at a Glance �� ENDEAvo:Us 25 Years of Endeavours Strong Retail Presence & Distribution Network Delhi NCR 53,724 Mn. 6 99 Rajasthan • I 9 branches covering • 1 branch major towns AUM States and NCR Branches of Delhi Gujarat • 55 branches across the state Madhya Pradesh 3,478 7,00,000+ • 10 branch
Slide 6: Journey of 104 Quarters
Journey of 104 Quarters �� ENDEAvo:Us Asset Under Management (AUM) 59,663 53,384 53,724 41,570 31,561 25,650 20,052 13,910 10,123 3,884 5,118 6,909 1,510 2,312 2,597 2,682 20 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q 104Q Profit After Tax (PAT) 1,666 1,433 1,435 911 674 534 311
Slide 7: Strong Fundamentals
Strong Fundamentals �� ENDEAvo:Us Enablers for Navigating through current unprecedented challenges SUCCESSFUL TRACK STRONG PROVISION HIGHLY CAPITALISED ROBUST LIQUIDITY RECORD BUFFER & PORTFOLIO POSITION QUALITY • Successfully withstood • Highly capitalised for • Consistent track record of • Cash an
Slide 8: Navigating COVID 19 pandemic (1/2)
Navigating COVID 19 pandemic (1/2) �� ENDEAvo:Us ASSETS AND PORTFOLIO QUALITY • The AUM stood at INR 53,724 Mn. a contraction of 9.95% over the corresponding period. However, the two quarters are not comparable due to the pandemic impact. The Gross Stage 3 Assets is 1.94% and Net Stage 3 Assets is 1
Slide 9: Navigating COVID 19 pandemic (2/2)
Navigating COVID 19 pandemic (2/2) �� ENDEAvo:Us OPERATIONAL MANAGEMENT • Currently , all our 99 branches are operational with adequate staffing to be scaled up gradually depending upon the situation. • Company uses banking platform for 100% of its disbursement and collections. The use of banking pl
Slide 10: Diversified product offerings presenting significant growth opportunities
Diversified product offerings presenting significant �� ENDEAvo:Us growth opportunities MAS focuses on serving the underserved credit needs of mid and low income group segments Micro-Enterprise Loans of up to INR 300,000 to Micro-Enterprises which primarily include INR 29,705 Mn. retailers, trader
Slide 11: AUM by Product Category
AUM by Product Category �� ENDEAvo:Us AUM by Product Category (INR Mn.) Segment Performance Micro-Enterprise loans(MEL) SME loans 2-Wheeler loans Commercial Vehicle loans Mar -21 vs Mar-20 -9.95% 59,663 1,547 53,724 53,384 1,582 4,003 2,029 18.33% 4,654 3,267 Micro-Enterprise loans (MEL) 17,740 13,5
Slide 12: Liability Management
Liability Management �� ENDEAvo:Us SOURCES OF FUND BORROWING as on 31st March 2021 COST OF BORROWING (COB)* 36,606 9.32% 9.10% 9.10% DIRECT ASSIGNMENT 8.86% 8.75% 31,227 29% 25,632 CASH CREDIT 32% NON-CONVERTIBLE DEBENTURES 7% SUB DEBT Mar-19 Mar-20 Mar-21 1% FY19 FY20 FY21 Q4 FY20 Q4 FY21 TERM LOAN
Slide 13: Going Forward
Going Forward �- ENDEAVO�S ASSET CREATION To anchor to our belief that, growth along with quality is the key to enhance the shareholders’ value. Anticipated growth for the next five years to be in the range of 20% - 30% with an understanding of recalibrating it depending on the macro situation,
Slide 14: Strengthening the Fundamentals
Strengthening the Fundamentals… � ENDEAVO�S Amortising the gain on assignment of loans over the tenure of the assets in place of booking it upfront Till June quarter, on derecognition of loans in its entirety upon assignment, as per Ind AS 109 'Financial Instruments', the Company has been recognisin
Slide 15: Financial Review
... .. .............. � ENDEAVO�S FINANCIAL REVIEW 14
Slide 16: Key Highlights – Q4 FY21
Key Highlights – Q4 FY21 �� ENDEAvo:Us ASSET UNDER MANAGEMENT (AUM) PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH* 9.95% INR 53,724 Mn. (Mar - 20: INR 59,663 Mn.) INR 365 Mn. 5.88% (Q4 FY20: INR 345Mn.) 14.14% RETURN ON AVG. BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING (COB) 3
Slide 17: Financial Performance – Q4 FY21
Financial Performance – Q4 FY21 �� ENDEAvo:Us ASSETS UNDER MANAGEMENT (AUM) NET WORTH CAGR 0.32% CAGR 16.52% -9.95% 19.54% 59,663 11726 53,384 53,724 9809 8637 Mar-19 Mar-20 Mar-21 Mar-19 Mar-20 Mar-21 ON & OFF BOOK AUM ON BOOK OFF BOOK 25% 39% 44% 75% 61% 56% (In INR Mn.) Mar-19 Mar-20 Mar-21 16
Slide 18: Financial Performance – Q4 FY21
Financial Performance – Q4 FY21 �� ENDEAvo:Us REVENUE NET INTEREST INCOME (NII)* CAGR 3.05% CAGR -3.69% 6,727 5,939 5,592 -14.60% 4005 -22.77% -18.10% 3551 3294 1011 781 863 1,699 1,391 FY19 FY20 FY21 Q4 FY20 Q4 FY21 Q4 FY21 without effect of FY19 FY20 FY21 Q4 FY20 Q4 FY21 carrying cost OPERATING EX
Slide 19: Financial Performance – Q4 FY21
Financial Performance – Q4 FY21 �� ENDEAvo:Us RETURN ON AVG. BALANCE SHEET ASSETS RETURN ON AVG. AUM (ROAUM)* (ROTA)* 4.46% 3.02% 2.95% 2.80% 4.02% 2.53% 2.31% 2.94% 3.09% 3.01% FY19 FY20 FY21 Q4 FY20 Q4 FY21 FY19 FY20 FY21 Q4 FY20 Q4 FY21 RETURN ON AVG. NET WORTH (RONW)** 18.89% 19.30% 14.65% 15.16
Slide 20: Financial Performance – Q4 FY21
Financial Performance – Q4 FY21 �� ENDEAvo:Us Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)* OPERATING EXPENSE AS % OF NII 1.70% 26.36% 1.59% 1.57% 1.58% 22.67% 23.15% 22.44% 18.71% 1.09% FY19 FY20 FY21 Q4 FY20 Q4 FY21 FY19 FY20 FY21 Q4 FY20 Q4 FY21 Efficiently maintaining the quality
Slide 21: Financial Performance – Q4 FY21
Financial Performance – Q4 FY21 �� ENDEAvo:Us Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO (CAR) 3.18 3.12 2.97 29.70% 26.86% 26.85% Mar-19 Mar-20 Mar-21 Mar-19 Mar-20 Mar-21 INTEREST COVERAGE RATIO (ICR) 2.08 1.84 1.73 1.82 1.67 Healthy Coverage FY19 FY20 FY21 Q4 FY20 Q4 FY
Slide 22: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality �� ENDEAvo:Us ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 0.71% 1.59% 0.69% 1.01% 0.35% 1.00% 4.00% 0.41% 1.25% 1.18% 0.91% 1.22% 0.88% 2.00% 2.60% 1.75% 1.87% 0.00% Mar-19 Mar-20 Mar-21 1 – 30 DPD 31 – 60 DPD 61 – 90 DPD 91 –120 DPD > 120 DPD 21
Slide 23: Credit Quality
Credit Quality � ENDEAVO�S (In INR Mn.) FY21 FY20 Particulars AUM Provision AUM Provision Stage 1 39060.66 130.40 31762.21 106.04 Stage 2 792.64 73.95 863.52 111.56 Stage 3 644.25 225.79 629.19 164.73 TOTAL ON BOOK 40497.54 430.14 33254.91 382.33 Assigned Portfolio 13226.87 N/A 26407.92 N/A TOTAL AU
Slide 24: Constantly maintaining quality portfolio
Constantly maintaining quality portfolio �� ENDEAvo:Us Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 1.94% 2.00% 1.39% 1.42% 1.50% 1.52% 1.00% 1.14% 1.14% 0.50% 0.00% Mar-19 Mar-20 Mar-21 GROSS STAGE 3 ASSETS NET STAGE 3 ASSETS 23
Slide 25: Reputed Marquee FIIs and DIIs shareholders base
Reputed Marquee FIIs and DIIs shareholders base �� ENDEAvo:Us Shareholding as on 31st March 2021 Marquee Non Promoter Shareholders MOTILAL PRIVATE EQUITY Mutual Fund 8.81% AXIS MUTUAL FUND IDFC MUTUAL FUND Trust TATA AIA LIFE INSURANCE 7.40% MOTILAL OSWAL MUTUAL FUND Foreign Portfolio ASK INVESTMENT
Slide 26: Financial Statement: FY19 – FY21
Financial Statement: FY19 – FY21 �� ENDEAvo:Us PROFIT & LOSS STATEMENT INR Mn. FY 2019 FY 2020 FY 2021 Total Revenue 5592 6727 5939 Expenses 3391 4446 4010 Finance Costs 2041 2722 2645 Operating Expense 805 899 616 Provisions and Loan Losses 545 825 749 Profit Before Tax 2201 2282 1929 Profit After
Slide 27: MAS Rural Housing & Mortgage Finance Limited (MRHMFL)
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary 26
Slide 28: About MRHMFL
About MRHMFL MAS is targeting affordable housing finance segment through its subsidiary • MAS Rural Housing & Mortgage Finance Limited (“MAS Housing” or MRHMFL) is a non-deposit taking , NHB registered, housing finance institution. It was incorporated in 2008 and headquartered in Ahmedabad, Gujarat
Slide 29: Navigating COVID 19 pandemic
Navigating COVID 19 pandemic ASSETS AND PORTFOLIO QUALITY • The AUM stood at INR 2,849 Mn. a contraction of 0.58% over the corresponding period. However, the two quarters are not comparable due to the pandemic impact. The Gross Stage 3 Assets is 0.37% and Net Stage 3 Assets is 0.26% of AUM as on 31s
Slide 30: Financial Performance – Q4 FY21
Financial Performance – Q4 FY21 ASSETS UNDER MANAGEMENT (AUM) NET WORTH CAGR 2.68% CAGR 7.92% 5.72% -0.58% 539 510 2,702 2,865 2,849 463 Mar-19 Mar-20 Mar-21 Mar-19 Mar-20 Mar-21 BORROWING GROSS STAGE 3 ASSETS & NET STAGE 3 ASSETS GROSS STAGE 3 ASSETS NET STAGE 3 ASSETS 2,546 2,225 2,269 0.36% 0.34%
Slide 31: Financial Performance – Q4 FY21
Financial Performance – Q4 FY21 REVENUE NET INTEREST INCOME (NII) CAGR 4.65% CAGR 4.18% 140 142 130 384 353 325 6.11% -5.45% 36 38 91 86 FY19 FY20 FY21 Q4 FY20 Q4 FY21 FY19 FY20 FY21 Q4 FY20 Q4 FY21 PROFIT BEFORE TAX (PBT)* PROFIT AFTER TAX (PAT)* 43 38 22 -12 3 2 -9 FY19 FY20 FY21 Q4 FY20 Q4 FY21 F
Slide 32: Liability Management
Liability Management • The composition of our liability mix ensures healthy ALM and well diverse resource mix. Sources of Fund as on 31st March 2021 • The Liability management was tested last year and the company could successfully demonstrate its capability of efficient liability management CASH CR
Slide 33: Credit Quality
Credit Quality FY21 FY20 (In INR Mn.) Particulars AUM Provision AUM Provision Stage 1 2,470.90 2.20 2,487.95 3.48 Stage 2 162.91 8.44 101.37 5.44 Stage 3 9.84 2.93 9.27 2.56 TOTAL ON BOOK 2,643.66 13.57 2,598.59 11.48 Assigned Portfolio 205.29 N/A 266.85 N/A TOTAL AUM 2,848.95 2,865.44 Particulars F
Slide 34: Understanding MAS
... .. .............. � ENDEAVO�S UNDERSTANDING MAS 33
Slide 35: About MAS
About MAS �- ENDEAVO�S � � ........ VISION MISSION BELIEF To be one of the most efficient To constantly endeavor, to attain excellence and “We have miles to go & Promises to keep……” distributors of financial services and create a very wide Financial distribution network and “Together we can and we w
Slide 36: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network �� ENDEAvo:Us Through NBFC Partners (1/3) AIM & OUR UNDERSTANDING Efficient last mile delivery of credit Value chain approach has proven to be Better quality of intermediation with Revenue sharing model ensures scalability across its product range namely MEL, t
Slide 37: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network �� ENDEAvo:Us Through NBFC Partners (2/3) IMPACT MAS NBFCs Borrowers Eco-System • Widens its network while maintaining • Value addition in improving their • Creates an all-round enabling • Catalyst in Efficient last mile delivery a relatively lower risk profile
Slide 38: Sharpening the learning curve (3/3)
Sharpening the learning curve(3/3) �� ENDEAVO�S The learning curve is further strengthened: CREDIT ASSESSMENT Continuous strengthening of due diligence and audit process - both pre and post disbursement. Our proven track record of Further strengthening the field due more than INR 14,000 Crore dilige
Slide 39: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & �� ENDEAvo:Us Risk Management Framework MAS aims to give credit where it is due with the dictum of adherence and adaptability Robust credit assessment Credit assessment process overview by Product Micro-Enterprise Loans SME Loans • Analysis of business po
Slide 40: Team MAS
Team MAS �- ENDEAVO�S EXPERIENCED PROMOTER Mr. Kamlesh Chimanlal Gandhi, aged 55 years, is the Founder, Chairman and Managing Director of MAS since inception. He visualized the opportunities in the retail financial services very early and has been leading the strategic initiatives and the execut
Slide 41: Team MAS
Team MAS �� ENDEAVO�S EMINENT DIRECTORS Mrs. Darshana Saumil Pandya Mr. Bala Bhaskaran Mr. Chetan Ramniklal Shah Mr. Umesh Rajanikant Shah Mrs. Daksha Niranjan Shah Executive Director & CEO Independent Director Independent Director Independent Director Independent Director Darshana Saumil Pandya,
Slide 42: Major events and milestones
Major events and milestones �� ENDEAvo:Us 2008 2018 1995 - Acquired second and third round of capital 2016 - Listing of Equity Shares on Bombay Stock Exchange & 2020 infusion worth INR 435 2012 2014 National Stock Exchange On incorporation, - Completed 25th Year of Mn. and INR 400 Mn. from - Bank lo
Slide 43: The Power of Distribution
<Ifie (J'ower of(J)istri6ution REGISTERED OFFICE MAS Financial Services Limited 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009 www.mas.co.in INVESTOR CONTACT Mr. Ankit Jain Mr. Nishant Vyas Chief Financial Officer Investor Relations Manager 079-41106682 079-41106551 ankit_jain@mas.
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