Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q4 FY22 Earnings Presentation
41 slides from Mas Financial Services's earnings presentation, May 2022
Slide 1: Investor Presentation – Q4 FY22
INVESTOR PRESENTATION – Q4 FY22
Slide 2: 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 3: Table of Content
Table of Content 04 MAS AT A GLANCE 05 GROWTH STORY 08 LEVERAGING TECHNOLOGY ACROSS SPECTRUM 09 STRONG FUNDAMENTALS 10 PRODUCT OFFERINGS 12 LIABILITY MANAGEMENT 13 GOING FORWARD 14 FINANCIAL REVIEW 21 CREDIT QUALITY 24 REPUTED MARQUEE INVESTORS 25 FINANCIAL STATEMENT FY20- FY 2022 26 MAS RURAL HOUSI
Slide 4: MAS at a Glance: 25 Years of Endeavours
MAS at a Glance 25 Years of Endeavours Strong Retail Presence & Distribution Network Delhi NCR Rajasthan 62,468 Mn. 6 125 • 19 branches covering major towns • 1 branch AUM States and NCR Branches of Delhi Gujarat • 54 branches across the state Madhya Pradesh 4,438 6,75,000+ • 22 branches covering ma
Slide 5: Growth
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO 5
Slide 6: Journey of 108 Quarters
Journey of 108 Quarters Asset Under Management (AUM) 59,663 62,468 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 108Q Profit After Tax (PAT) 1,666 1,578 1,433 1,435 911 674 534
Slide 7: Growing consistently and steadily
Growing consistently and steadily- Our growth journey of LAST 15 YEARS SINCE OUR FIRST CAPITAL RAISE… ASSETS UNDER MANAGEMENT (AUM) CAGR 24.58%* 62,468 2,312 • Despite various micro and macro headwinds including demonetisation, GST, NBFC liquidity FY07 FY22 crisis, and COVID, MAS has displayed resil
Slide 8: Leveraging technology across spectrum
Leveraging technology across spectrum 1. Origination 2. Decisioning • Centralized Onboarding System to capture new leads data Assess Credit worthiness through pre-set Business Rules Engine digitally (BRE) & APIs plugins • Captured Leads authenticated via mobile OTP • eKYC – Enables paperless verific
Slide 9: Strong Fundamentals
Strong Fundamentals Enablers for consistent growth SUCCESSFUL TRACK STRONG PROVISION HIGHLY CAPITALISED ROBUST LIQUIDITY RECORD BUFFER & PORTFOLIO POSITION QUALITY • Successfully withstood • Highly capitalised for • Consistent track record of • Cash and cash equivalent multiple headwinds over future
Slide 10: 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 of up to INR 300,000 to Micro-Enterprises which primarily include INR 32,494 Mn. retailers, traders, small manuf
Slide 11: AUM by Product Category
AUM by Product Category AUM by Product Category (INR Mn.) Micro-Enterprise loans(MEL) SME loans 2-Wheeler loans Commercial Vehicle loans Segment Performance March -22 vs March-21 16.27% 59,663 62,468 3,452 9.39% 1,547 53,724 4,003 3,774 Micro-Enterprise loans (MEL) 2,029 3,267 17,740 22,748 21.49% 1
Slide 12: Liability Management
Liability Management SOURCES OF FUND BORROWING as on 31st March 2022 COST OF BORROWING (COB)* 45,501 CASH CREDIT, 9.32% 9.10% 28% 8.75% 8.75% 8.67% DIRECT ASSIGNMENT (Incl. Co- 36,606 lending), 21% 31,227 SECURITISATION, 1% NON-CONVERTIBLE DEBENTURES, 7% SUB DEBT, 3% Mar-20 Mar-21 Mar-22 FY20 FY21 F
Slide 13: Going Forward
Going Forward 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% - 25% with an understanding of recalibrating it depending on the macro situation, prioritising
Slide 14: Financial Review
FINANCIAL REVIEW 14
Slide 15: Key Highlights – Q4 FY22
Key Highlights – Q4 FY22 ASSET UNDER MANAGEMENT (AUM) PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH* INR 62,468 Mn. 16.27% (March - 21: INR 53,724 Mn.) INR 426 Mn. 16.55% 14.47% RETURN ON AVG. (Q4 FY21: INR 365 Mn.) BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (COB) 2.86% RET
Slide 16: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 ASSETS UNDER MANAGEMENT (AUM) NET WORTH 11.59% 16.27% 13085 59,663 62,468 11726 53,724 9809 Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 ON & OFF BOOK AUM ON BOOK OFF BOOK 25% 19% 44% 75% 81% 56% (In INR Mn.) Mar-20 Mar-21 Mar-22 FY 20 and FY 21 was severely affected by
Slide 17: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 REVENUE NET INTEREST INCOME (NII) 6,727 6,575 5,939 29.66% 4005 3294 3379 15.14% 1,804 1,391 781 899 FY20 FY21 FY22 Q4 FY21 Q4 FY22 FY20 FY21 FY22 Q4 FY21 Q4 FY22 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) 921 864 581 50.04% 1666 1578 1435 16.55% 294 196 365 426 (In IN
Slide 18: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 RETURN ON AVG. NET WORTH (RONW)** RETURN ON AVG. AUM (ROAUM)* 19.30% 2.95% 2.80% 2.84% 2.72% 2.53% 14.65% 14.05% 14.14% 14.47% FY20 FY21 FY22 Q4 FY21 Q4 FY22 FY20 FY21 FY22 Q4 FY21 Q4 FY22 ** Networth considered without OCI 18 * Quarterly figures have been annualized.
Slide 19: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)*^ OPERATING EXPENSE AS % OF INCOME^ 1.96% 16.28% 14.02% 14.07% 1.53% 1.59% 1.50% 12.84% 9.78% 1.02% FY20 FY21 FY22 Q4 FY21 Q4 FY22 FY20 FY21 FY22 Q4 FY21 Q4 FY22 Efficiently maintaining the quality of assets
Slide 20: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO *(CAR) 3.48 3.18 3.12 29.70% 26.85% 26.35% Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 INTEREST COVERAGE RATIO (ICR) 1.84 1.82 1.73 1.66 1.63 Healthy Coverage FY20 FY21 FY22 Q4 FY21 Q4 FY22 * In March
Slide 21: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 1.59% 1.01% 0.35% 1.69% 4.00% 0.41% 1.25% 0.58% 0.91% 0.82% 1.22% 0.88% 2.00% 0.87% 1.75% 1.87% 1.42% 0.00% Mar-20 Mar-21 Mar-22 1 – 30 DPD 31 – 60 DPD 61 – 90 DPD 91 –120 DPD > 120 DPD 21
Slide 22: Credit Quality
Credit Quality (In INR Mn.) March-22 March-21 Particulars AUM Provision AUM Provision Stage 1 48866.98 175.80 39060.66 130.40 Stage 2 902.64 92.10 792.64 73.95 Stage 3 1050.09 361.21 644.25 225.79 TOTAL ON BOOK 50819.71 629.11 40497.54 430.14 Assigned Portfolio 11648.29 N/A 13226.87 N/A TOTAL AUM 62
Slide 23: Constantly maintaining quality portfolio
Constantly maintaining quality portfolio Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 2.50% 2.30% 2.35% 2.28% 2.21% 1.94% 2.00% 1.42% 1.80% 1.50% 1.74% 1.76% 1.70% 1.52% 1.00% 1.14% 0.50% 0.00% Mar-20 Mar-21 June-21 Sept-21 Dec-21 Mar-22 GROSS STAGE 3 ASSETS NET ST
Slide 24: Reputed Marquee FIIs and DIIs shareholders base
Reputed Marquee FIIs and DIIs shareholders base Shareholding as on 31st March 2022 Marquee Non Promoter Shareholders MOTILAL PRIVATE EQUITY Mutual Fund 8.13% AXIS MUTUAL FUND IDFC MUTUAL FUND Trust TATA AIA LIFE INSURANCE 7.40% MOTILAL OSWAL MUTUAL FUND Foreign Portfolio ASK INVESTMENT MANAGERS PRIV
Slide 25: Financial Statement: FY20 – FY2021-22
Financial Statement: FY20 – FY2021-22 PROFIT & LOSS STATEMENT INR Mn. FY 2020 FY 2021 FY 2021-22 Total Revenue 6727 5939 6575 Expenses 4446 4010 4458 Finance Costs 2722 2645 3195 Operating Expense 864 581 921 Provisions and Loan Losses 859 784 341 Profit Before Tax 2282 1929 2117 Profit After Tax 16
Slide 26: MAS Rural Housing & Mortgage Finance Limited (MRHMFL)
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary 26
Slide 27: 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 28: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 ASSETS UNDER MANAGEMENT (AUM) NET WORTH 11.04% 13.88% 3,163 614 2,865 2,849 539 510 Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 BORROWING REVENUE 2,225 2,269 2,220 384 353 358 3.30% 86 89 FY20 FY21 FY22 Q4 FY21 Q4 FY22 Mar-20 Mar-21 Mar-22 (In INR Mn.) 28
Slide 29: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 PROFIT AFTER TAX (PAT) NET INTEREST INCOME (NII) 156 140 142 499.95% 4.59% 46 29 17 2 12 38 40 FY20 FY21 FY22 Q4 FY21 Q4 FY22 FY20 FY21 FY22 Q4 FY21 Q4 FY22 GROSS STAGE 3 ASSETS # NET STAGE 3 ASSETS # 0.65% 0.69% 0.59% 0.53% 0.46% 0.49% 0.34% 0.37% 0.42% 0.38% 0.25% 0
Slide 30: 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 2022 • The Company continues to demonstrate its capability of efficient liability management. • Capital adequacy ratio, as on 31st March 2022 is 55.27% agai
Slide 31: Credit Quality
Credit Quality March-22 March-21 (In INR Mn.) Particulars AUM Provision AUM Provision Stage 1 2326.76 2.34 2,470.90 2.20 Stage 2 183.03 10.34 162.91 8.44 Stage 3 16.26 4.83 9.84 2.93 TOTAL ON BOOK 2526.04 17.51 2643.66 13.57 Assigned Portfolio 637.36 N/A 205.29 N/A TOTAL AUM 3163.41 2848.95 Particul
Slide 32: Understanding MAS
UNDERSTANDING MAS 32
Slide 33: About MAS
About MAS 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 will” create value on a ver
Slide 34: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network 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, the most potent
Slide 35: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network 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 systems and o
Slide 36: Sharpening the learning curve (3/3)
Sharpening the learning curve(3/3) 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 15,000 Crore diligence. cumulati
Slide 37: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & 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 potential and •
Slide 38: Team MAS
Team MAS EXPERIENCED PROMOTER Mr. Kamlesh Chimanlal Gandhi, aged 56 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 execution team at M
Slide 39: Team MAS
Team MAS 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, aged 49 He
Slide 40: Major events and milestones
Major events and milestones On incorporation, commenced retail Listing of Equity Shares on BSE & NSE Disbursement and AUM crossed Received capital infusion of INR 350 1995 finance operations with Two-wheeler and Micro-Enterprise loans 2013 INR 10 Bn. 2018 Mn. from MOSL Raised fresh capital
Slide 41: Registered Office and Investor Contact
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.co.in nishant_vyas@mas.co.in
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