Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — FY2024 Earnings Presentation
36 slides from Aavas Financiers's earnings presentation, Apr 25, 2024
Slide 1: Exchange filing cover letter for investor presentation
Ref. No. AAVAS/SEC/2024-25/174 Date: April 25, 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, Sub
Slide 2: Aavas Financiers Ltd. Investor Presentation – FY24
AAVAS FINANCIERS LTD. Investor Presentation – 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 from Jaipur, Rajasthan – Regulated by Reserve Bank of India (“RBI”) Supervised by National Housing Bank (“NHB”) Stepped into 14th year of Operations Currently being run by professional management team backed by Recognized by NHB for refinance marquee priva
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) 173.1 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 FY24 FY28E # of 25 35 42 44 94 165
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 Risk management Collections 10 11 sourcing 9 8 Superior Business Outcome Focused approach to directly
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 leveraging Salesforce platform to achieve 10x scale 1 2 3 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 Mar-24 A1+ AA / AA / Mar-24 Mar-24 Stable Stable CARE Mar-24 A1+ A/ A+ / INDIA RATINGS Mar-16 Mar-17 Stable Stable Mar-24 A1+ 11
Slide 13: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 31st Mar 2024 31st Mar 2024 Investor Details % Holding Kedaara Capital^ 16.02 Partners Group^ 10.87 SBI Asset Management* 8.86 Stewart Investors^ 6.98 Others, 12.62% Kedaara Capital, UTI Asset Management^*
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% 11% +2 bps 173,126 55,822 Indicates upto 90 DPD 50,245 assets but categorized as 0.92% 0.94% 141,667 GNPA/Gross Stage 3 on 0.11% 0.12% account of RBI notification 0.81% 0.82% Mar-23 Mar-24 FY23 FY24 Mar-23 Mar-24 PAT* (₹ Mn
Slide 16: Healthy Business Growth
Healthy Business Growth AUM (₹ Mn) Disbursements (₹ Mn) PAT* (₹ Mn) +27% 173,126 55,822 +18% 50,245 +32% CAGR 141,667 CAGR CAGR 113,502 4,283 4,908 36,022 3,575 94,543 29,304 2,903 77,961 26,724 26,569 2,491 59,416 20,512 1,761 40,730 932 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 FY18 FY19 FY
Slide 17: AUM break-up
AUM break-up Product Category Occupation Category Customer Category 31-Mar-23 ATS : ₹ 0.89 Mn ATS : ₹ 0.92 Mn 19.7% (Non HL) ATS : ₹ 0.74 Mn 0.3% 39.9% ATS : ₹ 7.74 Mn 10.4% 60.1% 99.7% 69.9% ATS : ₹ 0.97 Mn ATS : ₹ 0.87 Mn 31-Mar-24 ATS : ₹ 0.93 Mn ATS : ₹ 0.96 Mn (Non HL) ATS : ₹ 0.76 Mn 13.7% 0.4
Slide 18: Disbursement break-up – Product category
Disbursement break-up – Product category FY23 FY24 (Non HL) ATS : ₹ 0.86 Mn (Non HL) ATS : ₹ 0.83 Mn 19.6% 8.9% 24.6% 14.1% 66.3% 66.5% ATS : ₹ 1.17 Mn ATS : ₹ 1.34 Mn Disbursement include 14.1% of mortgaged-backed MSME Loans Disbursement include 24.6% of mortgage-backed MSME Loans classified under
Slide 19: Well diversified geographical distribution
Well diversified geographical distribution Operations State Branches Commenced in Rajasthan 108 2012 367 Maharashtra 49 2012 13 Branches Gujarat 45 2012 States/ UTs Madhya Pradesh 51 2013 Delhi 5 2013 Haryana & Punjab 23 2017 Chhattisgarh 9 2017 Uttar Pradesh 32 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% 13.13% 12.67% 12.85% 14.72% 13.99% 13.75% 13.63% 13.16% 13.12% 13.13% 12.65% 9.51% 7.86% 7.95% 8.07% 7.61% 7.66% 8.63% 8.74% 8.44% 7.29% 8.07
Slide 21: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) FY22 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 FY23 8.17% 8.23% 8.28% 7.67% 3.43% 3.51% 3.42% 3.56% 3.71% 3.75% 3.68% 3.17% 3MFY23 H1FY23 9M
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 1.10% 1.13% 1.00% 1.04% 1.09% 0.92% 0.94% 0.84% 0.87% 0.76% 0.79% 0.67% 0.17% 0.19% 0.13% 0.73% 0.13% 0.12% 0.68% 0.09% 0.10% 0.11% 0.12% 0.13% 0.14% 0.10% 0.09% 0.08% 0.93% 0.94% 0.87% 0.91% 0
Slide 23: Robust Liability Management
Robust Liability Management Diversified Funding Mix Loan Assets & Borrowings (₹ Mn) As on Mar-24 As on Mar-24 Diversified Mix : 35 Lenders No exposure to Commercial Papers Floating Fixed Equity 9.0% Terms Loans 1st in the industry to have funding tie-up with 19.6% MSME sector development institution
Slide 24: ALM Surplus
ALM Surplus Surplus Management* (₹ Mn) Average tenor of outstanding borrowing As on Mar-24 (months) 20,142 <3months 14,633 5,509 30,417 <6months 16,232 14,185 143 42,233 134 <1year 16,079 130 132 26,154 126 128 84,590 <3years 67,590 17,000 119,057 <5years 98,903 20,154 145,497 <7years 115,647 29,850
Slide 25: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Mar-24 Cash & Cash Equivalents 17,849 High-Quality Liquidity of Un-availed CC Limits 1,250 ₹ 21,399 Mn Documented & Un-availed Sanctions from NHB 2,300 Documented & Un-availed Sanctions from other Banks 8,940 Total Liquidity Position 30,339 Par
Slide 26: Net Securitization Volume
Net Securitization Volume ₹ 7,784 Mn ₹ 9,541 Mn ₹ 12,428 Mn (Rs in Mn) 3,970 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 Q4FY24 25
Slide 27: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (₹) 476.8 14.09% 13.94% 413.6 13.72% 355.8 Mar-22 Mar-23 Mar-24 FY22 FY23 FY24 Capital Adequacy Ratio (%) Earning Per Share* (₹) Tier I Tier II 61.9 50.73% 54.3 46.66% 43.76% 45.0 0.68% 0.30% 0.23% Mar-22 Mar-23 Mar-24 FY22 FY23 FY24 Data of Capital
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 ) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Interest Income on Loans (incl. Processing Fee) 4,598.2 3,887.2 18.3% 4,351.6 5.7% 17,301.6 14,080.4 22.9% Interest Income on Fixed Deposits 372.9 280.3 372.4 1,413.8 911.4 Reversal Income on Earlier Assi
Slide 30: Balance Sheet
Balance Sheet Particulars (₹ Mn ) 31-Mar-24 31-Mar-23 Sources of Funds Share Capital 791 791 Reserves & Surplus 36,942 31,906 Borrowings 1,23,983 98,873 Deferred Tax Liability (Net) 602 502 Other Liabilities & Provisions 2,876 2,034 Total 1,65,195 1,34,105 Application of Funds Loan Assets 1,40,044 1
Slide 31: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) FY24 FY23 Y-o-Y Q4 FY24 Q4 FY23 Y-o-Y Net Profit as per IGAAP 4,435.1 3,793.1 16.9% 1,200.7 1,006.1 19.3% Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial assets
Slide 32: ECL Provisions
ECL Provisions Particulars (₹ Mn ) 31-Mar-24 31-Dec-23 31-Mar-23 Gross Stage 1 1,37,507.4 1,27,159.9 1,12,318.4 During FY22, a resolution plan was implemented for certain % portfolio in Stage 1 97.60% 97.23% 97.26% borrower accounts as per RBI’s Resolution Framework 2.0 ECL Provision Stage 1 315.8 2
Slide 33: Net Worth Reconciliation
Net Worth Reconciliation Particulars (₹ Mn ) 31-Mar-24 31-Mar-23 Net Worth as per previous GAAP 34,650.8 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 (193.8) (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 assured independent Green House Gas (GHG) Statement and Independent Auditor’s Certificate on GRI Reporting Standards. • 150 houses are certified as EDGE certified Self-Built Green Homes. • 295 KWP Green Energ
Slide 36: Thank You !
Contact Us For further information, please contact : Aavas Financiers Limited CIN: L65922RJ2011PLC034297 (www.aavas.in) Mr. Rakesh Shinde, Head of Investor Relations Rakesh.shinde@aavas.in Thank You ! Investor Relations – Aavas Financiers investorrelations@aavas.in Strategic Growth Advisors Private