Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — 9M FY24 Earnings Presentation
36 slides from Aavas Financiers's earnings presentation, Feb 1, 2024
Slide 1: Stock exchange filing cover letter
Ref. No. AAVAS/SEC/2023-24/907 Date: February 01, 2024 To, To, The National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai – 400051 Mumbai – 400001 Scrip Code: 541988 Scrip Symbol: AAVAS Dear Sir/Madam,
Slide 2: Investor Presentation – 9M FY24
AAVAS FINANCIERS LTD. Investor Presentation – 9M FY24
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aavas Financiers Ltd. (the “Company”), without any specific objectives and solely for information purposes and do not constitute directly or indirectly any advertisement, advise, offer, recomm
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 Professional Management Team Experienced Board of Directors In-house Execution Model Technology and Data Analytics Improving Credit Ratings Diversified Shareholding Base
Slide 6: Aavas 3.0: Building a lasting institution
Aavas 3.0: Building a lasting institution Aavas 1.0 Aavas 2.0 Aavas 3.0 2012 2016 2023 AUM (INR Bn) Investment (2016) by: IPO (October 2018) 94.5 113.5 141.7 40.7 59.4 78.0 0.0 1.8 4.1 8.4 16.8 26.9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY28E # of 25 35 42 44 94 165 210 250 280
Slide 7: Strong Management Depth continues to drive Aavas's Outperformance
Strong Management Depth continues to drive Aavas's Outperformance Sachinder Bhinder Ghanshyam Rawat Ashutosh Atre Managing Director & Chief Executive Officer President & Chief Financial Officer President & Chief Risk Officer • 25+ years of experience • 30+ years of experience in financial • 30+ year
Slide 8: Experienced Board has guided Aavas's journey since inception
Experienced Board has guided Aavas's journey since inception Sandeep Tandon Soumya Rajan Kalpana Iyer Chairperson of Board, Independent Independent Director & Chairperson of Independent Director & Chairperson Director & Chairperson of Stakeholders Nomination & Remuneration Committee of Audit Committ
Slide 9: Superior Business Outcome: 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 customer centricity Lead generation and 13 13 Risk management Collections 11 10 11 sourcing 9 Superior Business Outcome Focused approach to direc
Slide 10: IT Transformation – Project GATI and UNNATI
IT Transformation – Project GATI and UNNATI (End to End digital journey from origination to servicing) Guiding Principles Key Objectives Transform loan origination & customer service processes 1 2 3 leveraging Salesforce platform to achieve 10x scale Enable seamless collaboration & information s
Slide 11: State-of-the art technology implementation enabling digital & analytical capabilities
State-of-the art technology implementation enabling digital & analytical capabilities LOS LMS Enterprise GL A New digital loan origination Adopting a next-gen cloud ERP system platform (LOS) and customer service Adopting a new loan management for back-office process automations to system to enable b
Slide 12: Improving Credit Ratings
Improving Credit Ratings Long-Term Credit Rating Short-Term Credit Rating Reaffirmed ICRA CARE ICRA Dec-23 A1+ AA / AA / Dec-23 Dec-23 Stable Stable CARE Dec-23 A1+ A/ A+ / INDIA RATINGS Mar-16 Mar-17 Stable Stable Dec-23 A1+ 11
Slide 13: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 31st Dec 2023 31st Dec 2023 Investor Details % Holding Kedaara Capital^ 23.60 Others, 11.03% Partners Group^ 16.12 Stewart Investors^ 6.17 Wasatch Global Investors^ 5.18 Kedaara Capital, UTI Asset Managemen
Slide 14: Financial Performance
Financial Performance Key Business Parameters Geographical Distribution Spreads and Margins Asset Quality Liability Franchise Key Ratios
Slide 15: Performance Highlights
Performance Highlights AUM (₹ Mn) Disbursement (₹ Mn) Gross Stage 3 (%) +22.8% 7.2% -04 bps 160,795 Indicates upto 90 DPD 36,891 1.13% assets but categorized as 130,887 34,428 1.09% GNPA/Gross Stage 3 on 0.19% 0.13% account of RBI notification 0.94% 0.96% Dec-22 Dec-23 9MFY23 9MFY24 Dec-22 Dec-23 PA
Slide 16: Healthy Business Growth
Healthy Business Growth AUM (₹ Mn) Disbursements (₹ Mn) PAT* (₹ Mn) +28% 141,667 CAGR +20% 113,502 CAGR +36% 50,245 CAGR 4,283 94,543 3,575 77,961 36,022 2,903 59,416 29,304 2,491 26,724 26,569 40,730 20,512 1,761 932 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19
Slide 17: AUM break-up
AUM break-up Product Category Occupation Category Customer Category ATS : ₹ 0.87 Mn ATS : ₹ 0.73 Mn ATS : ₹ 0.91 Mn 29.9% 0.1% 39.7% ATS : ₹ 8.82 Mn 31-Dec-22 60.3% 99.9% 70.1% ATS : ₹ 0.95 Mn ATS : ₹ 0.86 Mn ATS : ₹ 0.75 Mn ATS : ₹ 0.95 Mn ATS : ₹ 0.91 Mn 0.4% 30.7% 40.2% ATS : ₹ 7.81 Mn 31-Dec-23
Slide 18: Disbursement break-up – Product category
Disbursement break-up – Product category 9MFY23 9MFY24 ATS : ₹ 0.83 Mn ATS : ₹ 0.83 Mn 34.8% 34.1% 65.2% 65.9% ATS : ₹ 1.13 Mn ATS : ₹ 1.34 Mn Disbursement include 14.2% of mortgaged-backed MSME Loans Disbursement include 18.6% of mortgage-backed MSME Loans classified under Other Mortgage Loans clas
Slide 19: Well diversified geographical distribution
Well diversified geographical distribution Operations State Branches Commenced in Rajasthan 103 2012 351 Maharashtra 48 2012 13 Branches Gujarat 44 2012 States/ UTs Madhya Pradesh 49 2013 Delhi 5 2013 Haryana & Punjab 20 2017 Chhattisgarh 9 2017 Uttar Pradesh 30 2018 Uttarakhand 9 2018 Himachal Prad
Slide 20: Consistent Spreads
Consistent Spreads Yields, Cost of Borrowings and Spreads (%) Yields (%) COB (%) Spreads (%) Yields (%) COB (%) Spreads (%) 13.04% 13.12% 13.26% 13.15% 13.07% 12.65% 12.67% 12.85% 15.12% 14.72% 13.99% 13.75% 13.63% 13.16% 13.12% 12.65% 10.48% 9.51% 7.86% 7.95% 7.61% 7.66% 8.63% 8.74% 8.44% 7.29% 6.8
Slide 21: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) 7.80% 8.11% 8.23% 3.25% 3.37% 3.58% 6.93% 2.64% 2.88% 3.21% 3.34% 3.45% 3MFY22 H1FY22 9MFY22 FY22 3MFY22 H1FY22 9MFY22 FY22 3MFY22 H1FY22 9MFY22 FY22 8.17% 8.23% 8.28% 7.67% 3.42% 3.43% 3.51% 3.17% 3.56% 3.71% 3.75% 3.68% 3MFY23 H1FY23 9MFY23 FY23
Slide 22: Pristine Asset Quality
Pristine Asset Quality Gross Stage 3 (%) Net Stage 3 (%) DPD upto 90 DPD above 90 DPD upto 90 DPD above 90 1.08% 1.10% 1.13% 1.00% 1.04% 1.09% 0.92% 0.13% 0.84% 0.84% 0.87% 0.76% 0.79% 0.19% 0.13% 0.13% 0.73% 0.26% 0.17% 0.10% 0.11% 0.13% 0.14% 0.68% 0.10% 0.09% 0.21% 0.08% 0.82% 0.93% 0.94% 0.87% 0
Slide 23: Robust Liability Management
Robust Liability Management Diversified Funding Mix Loan Assets & Borrowings (₹ Mn) As on Dec-23 #35 Lenders As on Dec-23 Diversified Mix Terms Loans Floating Fixed Equity 10.1% No exposure to Commercial Papers 18.8% Assignment 160,795 160,795 47.0% Incremental 9M FY24 Borrowings - NHB Refinancing ₹
Slide 24: ALM Surplus
ALM Surplus Surplus Management* (₹ Mn) Average tenor of outstanding borrowing As on Dec-23 (months) 18,510 <3months 13,812 4,698 29,463 <6months 20,000 9,463 143 40,556 134 <1year 17,626 130 130 22,931 126 128 79,866 <3years 62,323 17,544 111,813 <5years 92,167 19,646 136,222 <7years 107,120 29,102
Slide 25: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Dec-23 Cash & Cash Equivalents 17,410 High-Quality Liquidity of Un-availed CC Limits 1,100 ₹ 25,510 Mn Documented & Un-availed Sanctions from NHB 7,000 Documented & Un-availed Sanctions from other Banks 15,240 Total Liquidity Position 40,750 Pa
Slide 26: Net Securitization Volume
Net Securitization Volume ₹ 7,784 Mn ₹ 9,541 Mn ₹ 8,458 Mn 3,054 3,284 3,173 2,981 2,967 2,916 2,234 2,001 1,749 1,424 0 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 25
Slide 27: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (₹) 458.9 13.59% 13.45% 398.4 12.70% 337.7 Dec-21 Dec-22 Dec-23 9MFY22 9MFY23 9MFY24 Capital Adequacy Ratio (%) Earning Per Share* (₹) Tier I Tier II 43.9 50.90% 49.22% 38.3 44.80% 30.4 0.70% 0.28% 0.21% Dec-21 Dec-22 Dec-23 9MFY22 9MFY23 9MFY24 Data
Slide 28: Annexures
Annexures Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Networth Reconciliation ESG 27
Slide 29: Profit & Loss Statement
Profit & Loss Statement Particulars (₹ Mn ) Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Q 9M FY24 9M FY23 Y-o-Y Interest Income on Loans (incl. Processing Fee) 4,351.6 3,635.4 19.7% 4,222.4 3.1% 12,703.4 10,193.2 24.6% Interest Income on Fixed Deposits 372.4 237.0 370.8 1,041.0 631.2 Reversal Income on Earlie
Slide 30: Balance Sheet
Balance Sheet Particulars (₹ Mn ) 31-Dec-23 31-Mar-23 Sources of Funds Share Capital 791 791 Reserves & Surplus 35,523 31,906 Borrowings 1,14,721 98,873 Deferred Tax Liability (Net) 561 502 Other Liabilities & Provisions 2,902 2,034 Total 1,54,497 1,34,105 Application of Funds Loan Assets 1,29,932 1
Slide 31: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) 9M FY24 9M FY23 Y-o-Y Q3 FY24 Q3 FY23 Y-o-Y Net Profit as per IGAAP 3,234.5 2,787.1 16.1% 1,060.2 987.7 7.3% Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial ass
Slide 32: ECL Provisions
ECL Provisions Particulars (₹ Mn ) 31-Dec-23 31-Dec-22 31-Mar-23 Gross Stage 1 1,27,159.9 1,02,743.1 1,12,318.4 During FY22, a resolution plan was implemented for certain % portfolio in Stage 1 97.23% 96.74% 97.26% borrower accounts as per RBI’s Resolution Framework 2.0 ECL Provision Stage 1 292.3 2
Slide 33: Net Worth Reconciliation
Net Worth Reconciliation Particulars (₹ Mn ) 31-Dec-23 31-Mar-23 Net Worth as per previous GAAP 33,451.5 30,177.4 Adjustments increasing/(decreasing) net worth as reported under previous GAAP: Adoption of EIR for amortisation of Income and expenses - financial assets at (230.2) (217.9) amortised cos
Slide 34: Environmental, Social & Governance
Environmental, Social & Governance Pillars for Sustainable Future Robust Corporate Governance The Board of Directors helps in improving corporate credibility and governance Green Planet Nurturing Workplace standards and managing risk and independent oversight in the Company. Create a healthy planet
Slide 35: Environmental, Social & Governance
Environmental, Social & Governance Environmental Initiatives Awards & Accolades • Aavas has also started working with a third-party consultant “CARE Edge” to increase its ESG activities. • 150 houses are certified “EDGE certified Self-Built Green Homes. • 25 KWP Green Energy (Solar Plant) installed
Slide 36: Thank You!
Contact Us Aavas Financiers Limited CIN: L65922RJ2011PLC034297 Mr. Rakesh Shinde Rakesh.shinde@aavas.in/ investorrelations@aavas.in www.aavas.in Thank You ! Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 www.sgapl.net 35