Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q3 FY24 Earnings Presentation
56 slides from Mas Financial Services's earnings presentation, Jan 24, 2024
Slide 1: Exchange filing letter for Investor Presentation
MFSL/SEC/EQ/2024/18 January 24, 2024 To, To, The Manager, General Manager BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block Mumbai – 400001 Bandra-Kurla Complex Bandra (East) Mumbai – 400051 Scrip Code: 540749, 947381 Tra
Slide 2: Investor Presentation – Q3FY24
INVESTOR PRESENTATION – Q3FY24 2022-23 1995-96
Slide 3: Financial Services for Crore Times
Thank You! Crore Times... Financial Services for Assets Under Management as Gx toe 710,000 Crores crass] Sto | OS tems & Growing Whester se | QR = ie = oe The Power of Distribution Every Time We Reach A Milestone, We Believe We Have Just Begun...
Slide 4: MAS Group at a Glance
MAS Group at a Glance 25+ Years of Endeavours Diversified Product Portfolio 1,02,161 Mn ₹ 1,839 Mn ₹ Consolidated PAT Consolidated AUM (9MFY24) Micro Enterprise Loans SME Loans 9 239 167 States / Union Territory Branches NBFCs Partnership (MAS Group) 11,450+ 8,50,000+ MAS Financial Services Limited
Slide 5: 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 6: Table of Contents
Table of Contents 1 MAS AT A GLANCE 06 2 GROWTH STORY 08 3 STRONG FUNDAMENTALS 12 4 STANDALONE FINANCIAL REVIEW 19 5 MAS RURAL HOUSING & MORTGAGE FINANCE LIMITED - SUBSIDIARY 28 6 FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG) 34 MAS Financial Services Limited 7 UNDERSTANDING MAS 40 8 WAY FORWARD
Slide 7: MAS at a Glance (Standalone)
MAS at a Glance (Standalone) MAS Financial Services was established in 1995 with an objective: “To address the financial needs of the underserved segments of the country” 25+ Diversified Product Portfolio Years of Endeavours Micro Enterprise Loans SME Loans ₹96,720 Mn 9 181 Standalone AUM States / U
Slide 8: Strong Distribution Network
Strong Distribution Network MAS has steadily entered adjacent geographies 1 Uttarakhand 181 1 Delhi 34 Rajasthan Branches 62 41 Gujarat Madhya Pradesh 1 Chhattisgarh Pan India Network presence Maharashtra through 29 MAS Financial Services Limited 167 7 NBFC Partners Karnataka 5 Tamil Nadu 7 Map not
Slide 9: Growth
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO
Slide 10: Journey of Quarters
Journey of 112 Quarters Asset Under Management (AUM) 80,926 (In ₹ Mn) 62,468 53,384 59,663 53,724 41,570 31,561 25,650 20,052 10,123 13,910 2,682 3,884 5,118 6,909 20 1,510 2,312 2,597 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q 104Q 108Q 112Q Profit After Tax (PAT) (In ₹ Mn) MAS
Slide 11: Growing Consistently and Steadily
Growing Consistently and Steadily - Our Growth Journey of Last 16 Years Since Our First Capital Raise… Despite various micro and macro headwinds Track record of high-quality portfolio with Net Maintained healthy return on assets including demonetisation, GST, NBFC Stage 3 Assets below 2% over the pe
Slide 12: Best-in-Class Asset Quality Across Cycles
Best-in-Class Asset Quality Across Cycles and Resilience Through Systematic Shocks Catalyst in growth of entrepreneurs, not creating just borrowers GROSS STAGE 3 ASSETS NET STAGE 3 ASSETS 7.2% 2nd Wave 6.4% 1st Wave 2.30% 2.35% 2.28% 2.27% 2.26% 2.21% 2.23% 2.15% 2.17% 2.23% 2.13% 1.94% 1.70% 1.56%
Slide 13: Strong Fundamentals
Strong Fundamentals
Slide 14: Diversified Product Offerings
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 SME Loans Two-Wheeler Loans Commercial Salaried Vehicle Loans Personal Loans 43,447 Mn 34,503 Mn 6,709 Mn 6,617 Mn
Slide 15: AUM by Product Category
Asset Under Management – by Product Category Micro-Enterprise loans(MEL) SME loans 2-Wheeler loans Commercial Vehicle loans Salaried Personal Loans 96,720 80,926 5,445 76,060 6,617 3,049 6,709 3,725 1,948 62,468 5,544 2,918 5,016 53,724 3,452 34,503 3,774 2,029 29,867 28,407 3,267 22,748 18,724 MAS
Slide 16: AUM by Product Category – Dec 23 vs Dec 22
Asset Under Management – by Product Category (In ₹ Mn.) Dec 23 vs. Dec 22 Micro Enterprise Loans SME Loans Two Wheeler Loans Commercial Vehicle Loans Salaried Personal Loans * 15.03% YoY 21.46% YoY 33.76% YoY 126.73% YoY 179.47% YoY 43,447 37,771 34,503 MAS Financial Services Limited 6,709 6,617 28,
Slide 17: AUM – Distribution Channel Wise
Asset Under Management – Distribution Channel Wise Increasing share of Direct Retail Distribution (%) 38 39 34 48 58 62 61 66 52 MAS Financial Services Limited 42 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 (₹ Mn) AUM 53,724 62,468 80,926 76,060 96,720 Retail Asset Channel Direct Retail Distribution 16
Slide 18: Leveraging Technology
Leveraging Technology MAS is integrating technology across all verticals of its operations Collaboration with 25+ APIs, enabling authentic data sourcing Origination Decisioning Operations Disbursement & Collection • Centralised onboarding and OTP • Pre-set rule engines to determine credit • Remote a
Slide 19: Strong Liability Management
Strong Liability Management The composition of our The Company continues to Sources of fund as on December 31, 2023 (%) liability mix ensures healthy demonstrate its capability of ALM and well diversified efficient liability management resource mix. The cashflow in all the cumulative buckets Around
Slide 20: Standalone Financial Review (Q3FY24)
Standalone Financial Review (Q3FY24)
Slide 21: Key Highlights – Q3 FY24
Key Highlights – Q3 FY24 Asset Under Management (AUM) Profit After Tax (PAT) Return on Avg. Net Worth* ₹96,720 Mn 27.16% (Dec-22: ₹76,060 Mn) ₹624 Mn 23.52% (Q3 FY23: ₹506 Mn) 16.15% Return on Avg. Balance Sheet Assets* Net Interest Income (NII) Cost of Borrowing* (COB) 2.88% 1,620 Mn 30.84% 54bps ₹
Slide 22: Financial Performance – Q3 FY24
Financial Performance – Q3 FY24 Assets Under Management (AUM) (In ₹ Mn) Net Worth (In ₹ Mn) On & Off Book AUM (%) 96,720 17,029 80,926 15,057 14,578 19 19 17 22 76,060 13,406 25 62,468 12,050 53,724 75 81 81 83 78 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Mar-21 Mar-22 Ma
Slide 23: Financial Performance – Q3 FY24
Financial Performance – Q3 FY24 Revenue (In ₹ Mn) Net Interest Income (NII) (In ₹ Mn) 9,491 4,743 6,571 3,375 5,599 2,954 3,258 1,620 2,515 1,238 FY21 FY22 FY23 Q3FY23 Q3FY24 FY21 FY22 FY23 Q3FY23 Q3FY24 Operating Expense (In ₹ Mn) Profit After Tax (PAT) (In ₹ Mn) 1,566 2,010 MAS Financial Services
Slide 24: Financial Performance – Optimized cost structure
Financial Performance – Q3 FY24 Optimized cost structure Operating Expense Ratio* Operating Expense as % of NII Operating Expense as % of Gross Income 2.18% 2.28% 2.21% 33.96% 33.01% 31.97% 16.50% 16.72% 15.90% 27.30% 14.02% 1.59% 19.66% 10.37% 1.02% FY21 FY22 FY23 Q3FY23 Q3FY24 FY21 FY22 FY23 Q3FY2
Slide 25: Financial Performance – Strongly Capitalized
Financial Performance – Q3 FY24 Strongly Capitalized Debt Equity Ratio Capital Adequacy Ratio 26.85% 26.35% 25.25% 3.92 4.07 3.99 24.47% 24.47% 3.39 3.04 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Healthy Coverage Interest Coverage Ratio MAS Financial Services Limited 1.60
Slide 26: Credit Quality – DPD Buckets
Asset Under Management – Credit Quality 1 – 30 DPD 31 – 60 DPD 61 – 90 DPD 91 –120 DPD > 120 DPD 1.59% 1.53% 1.67% 1.59% 1.65% 0.35% 1.69% 1.78% 0.70% 1.25% 0.48% 0.52% 0.54% 0.58% 0.45% 0.49% 0.57% 0.75% 0.51% 0.82% 0.47% MAS Financial Services Limited 1.22% 1.13% 0.86% 0.86% 1.01% 0.67% 0.87% 1.87
Slide 27: Credit Quality
Credit Quality (In ₹ Mn.) Dec-23 Dec-22 Particulars Dec-23 Dec-22 Particulars AUM Provision AUM Provision Gross Stage 1 And Stage 2 Assets As % Of On Book Assets 97.68% 97.81% Stage 1 72,436.68 194.84 60,974.71 218.64 Stage 1 & Stage 2 Assets (Standard Assets) Provisioning 0.46% 0.47% Stage 2 1,208.
Slide 28: Financial Statement: FY21 to 9MFY24
Financial Statement: FY21 to 9MFY24 (In ₹ Mn.) PROFIT & LOSS STATEMENT BALANCESHEET STATEMENT Particulars FY 2021 FY 2022 FY2023 9MFY24 Particulars Mar-21 Mar-22 Mar-23 Dec-23 ASSETS Total Revenue 5,599 6,571 9,491 9,040 Financial assets 50,869 59,763 75,724 86,302 Loans 38,051 45,538 59,102 69,121
Slide 29: MAS Rural Housing & Mortgage Finance Limited Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
Slide 30: About MRHMFL
About MRHMFL MAS is targeting affordable housing finance segment through its subsidiary MAS Rural Housing & Mortgage MRHMFL provides loans for MRHMFL provides housing loans in With its continued focus on the rural Finance Limited (“MAS Housing” or purchase of new and old houses, rural and semi-urban
Slide 31: Financial Performance – Q3 FY24
Financial Performance – Q3 FY24 Assets Under Management (AUM) (In ₹ Mn) Net Worth (In ₹ Mn) 5,440 851 894 4,133 3,985 619 652 3,141 540 2,832 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Borrowing (In ₹ Mn) Revenue (In ₹ Mn) 3,766 438 MAS Financial Services Limited 2,916 2,8
Slide 32: Financial Performance – Q3 FY24
Financial Performance – Q3 FY24 Profit After Tax (PAT) (In ₹ Mn) Net Interest Income (NII) (In ₹ Mn) 63 212 49 160 141 29 20 77 14 50 FY21 FY22 FY23 Q3 FY23 Q3 FY24 FY21 FY22 FY23 Q3 FY23 Q3 FY24 Gross Stage 3 Assets Net Stage 3 Assets MAS Financial Services Limited 0.81% 0.70% 0.58% 0.63% 0.52% 0.5
Slide 33: Liability Management
Liability Management Sources of Fund as on 31st December 2023 The composition of our liability mix The Company continues to demonstrate (%) ensures healthy ALM and well diverse its capability of efficient liability resource mix. The cashflow in all the management. cumulative buckets is positive. NHB
Slide 34: Credit Quality
Credit Quality (In ₹ Mn.) Dec-23 Dec-22 Particulars Dec-23 Dec-22 Particulars AUM Provision AUM Provision Stage 1 And Stage 2 Assets As % Of On Book Assets 99.08% 99.33% Stage 1 3,877.52 3.29 3,007.29 3.12 Stage 1 And Stage 2 Assets ( Standard Assets) 0.34% 0.37% Provisioning Stage 2 234.27 10.79 16
Slide 35: Focus on Environment, Social & Governance (ESG)
E S G Environment Social Governance FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG)
Slide 36: Environmental Stewardship
Environmental Stewardship MAS endeavours to create awareness The management of MAS Financial amongst all the stakeholders on the Services Limited (MAS) believes in importance of environment conservation Environmentally Conscious approach for & protection. The company also all business & operational
Slide 37: Enhancing Social Impact (1/2)
Enhancing Social Impact (1/2) SHIKSHA PROTSAHAN “Caring for communities is a way ✓ Identified & supported various bright students from more of life” than 30 schools who wish to pursue higher studies ✓ Provided basic infrastructure facilities at many schools ❖ MAS Financial Services Ltd around Ahmeda
Slide 38: Enhancing Social Impact (2/2)
Enhancing Social Impact (2/2) Shiksha Protsahan Arogya Abhiyan MAS Financial Services Limited 37 Blood Donation Welfare of War Widows’
Slide 39: Strict Governance Compliance
Strict Governance Compliance Board approved policies on Adequate Corporate processes, Governance are operational & IT uploaded on the Regular mechanism to company’s monitoring & ensure all website at Rich experienced continuous regulatory & tax www.mas.co.in Board of the upgradation of internal cont
Slide 40: Governance Framework
Governance Framework Board of Directors Advisory Committee (7 Directors including 5 Independent Directors) to the Board Committee Chaired by Other Committees Independent Directors MAS Financial Services Limited ֍ Audit Committee ֍ Finance Committee ֍ Risk Management Committee ֍ Credit Committee ֍ St
Slide 41: Understanding MAS
Understanding MAS
Slide 42: About MAS
About MAS VISION MISSION BELIEF To be one of the most efficient To constantly endeavor, to attain excellence and create “We have miles to go & Promises to keep……” distributors of financial services and a very wide Financial distribution network and to be “Together we can and we will” create value on
Slide 43: Visionary Leadership
Visionary Leadership Experienced Promoters Mr. Kamlesh Chimanlal Late Mr. Mukesh Gandhi, 57, is the Chimanlal Gandhi, a Co- One of the founder and former Founder, Chairman, and Managing Director of Director (Finance) at highest promoter MAS Financial Services MAS with over two Limited, brought over
Slide 44: Governance by an Independent Board
Governance by an Independent Board; Guidance from Industry Leaders Corporate Advisory Committee Mr. Bala Bhaskaran Mr. Chetan Ramniklal Shah Mr. Umesh Rajanikant Shah Dr. Rajiv Kumar Mr. TT Srinivasaraghavan Independent Director Independent Director Independent Director Former Vice Chairman of Niti
Slide 45: Robust Risk Management
Robust Risk Management Portfolio & Asset Quality Policies Process • MAS has well diversified products • MAS has comprehensive policies • MAS endeavours to have processes to portfolio and wide geographical presence framework for all the critical functions follow the laid down core policies. (through
Slide 46: Robust Credit Assessment
Robust Credit Assessment MAS aims to give credit where it is due with the dictum of adherence and adaptability Comprehensive Credit Assessment Credit Assessment Process Overview by Product Business loans require A assessment of business viability, cash flow, and profitability Income Profile Salaried
Slide 47: Unique and Robust Distribution Network
Unique and Robust Distribution Network Through NBFC Partners Aim & Our Understanding Impact Efficient last mile delivery of credit across Value chain approach has proven to be the MAS NBFCs its product range namely MEL, SME, 2 most potent one to solve informality • Widens its network while maintaini
Slide 48: Sharpening the Learning Curve
Sharpening the Learning Curve Our proven track record of more than ₹22,000 cr cumulative disbursement through NBFC partners with total loss less than 0.50% over a decade across various tough periods assures our confidence on the distribution model. Our Learning Curve is Further Strengthened by Credi
Slide 49: Way Forward
Way Forward
Slide 50: Key Growth Strategies for Consistent Growth
Key Growth Strategies for Consistent Growth – Entering the next phase of growth after crossing an important milestone of ₹ 100 Bn in AUM Focus towards direct lending Growth Drivers Aim to grow AUM by Share of business from direct Housing, SME and Wheels 20% to 25% over the distribution will increase
Slide 51: Enablers for Consistent Growth
Enablers for Consistent Growth Successful Track Record Highly Capitalised Robust Liability Management • Successfully withstood multiple • Highly capitalised for future growth. • Cash & bank balances of ~ ₹8,455 Mn. as on headwinds over the years Sufficient capital to continue the growth 31st Decembe
Slide 52: Shareholding Profile
Shareholding Profile
Slide 53: Marquee FIIs and DIIs Shareholders
Marquee FIIs and DIIs Shareholders Shareholding as on 31st December 2023 Marquee Investors (%) Others (Including AIFs, Fis, Banks & Individuals) Foreign Portfolio Investor 8.82% 1.62% Trust 7.40% Domestic Institutions 8.43% MAS Financial Services Limited 73.73% Promoter and Promoter Group 52
Slide 54: Events & Milestones
Events & Milestones
Slide 55: Major Events & Milestones
Major Events & Milestones Note: As per Calendar Year ✓ On incorporation, commenced retail finance operations with ✓ Bank loan rating was upgraded to ‘IND A’ with ‘Stable 1995 Two-wheeler and Micro-Enterprise loans 2016 1995 outlook ✓ Raised subordinate debentures of ₹ 400 Mn ✓ Motilal Oswal infused
Slide 56: Best Wishes
MAS Financial Services Limited Registered Office 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009 www.mas.co.in Investor Contact Best Wishes Mr. Ankit Jain Chief Financial Officer 079-41106682 ankit_jain@mas.co.in Mr. Meet Chande Investor Relations Manager 079-41106551 meet_chande@ma
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