Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q1 FY19 Earnings Presentation
43 slides from Mas Financial Services's earnings presentation, Aug 24, 2018
Slide 1: Exchange filing cover letter for Q1 FY19 investor presentation
�J\j& FINANCIAL SERVICES LIMITED 'I1ie <Power of <Distri6utwn MFSL/SEC/EQ/2018/42 August 24, 2018 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
Slide 2: Investor Presentation Q1 FY19
<J'lie (power of (J)istri6ution INVESTOR Corporate – PRESENTATION Presentation Q1 FY19 REGISTERED OFFICE MAS Financial Services Limited 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009
Slide 3: Disclaimer
Disclaimer 'l1ie <l"ower of<Distri6uti.cm 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
Slide 4: Table of Content
Table of Content 'l1ie <l"ower of<Distri6uti.cm Company Overview 5 Mission, Vision and Belief 6 Milestones 7 Product Offerings 8 Credit Assessment & Risk Management Framework 10 Retail Presence & Distribution Network 11 Unique and Robust Distribution Network Through NBFC Partners 12 AUM & PAT 16 Key
Slide 5: Note on first-time adoption of Indian Accounting Standards
Given the first time adoption of Indian Accounting Standards, for better understanding of the performance of the comparative periods we hereby provide financials highlights as per previous GAAP and IND-As section has been mentioned separately. SLIDE: SLIDE: 4 4
Slide 6: Company Overview
Company Overview '11i.e a>ower of'1Jistn"6ut:ion SPECAILISED IN IN RETAIL RETAIL LENDING LENDING SINCE 20 YEARS Diversified Product Portfolio Strong Retail Presence & Wide Distribution Network 6 states and Sourcing Intermediaries 'D' Bi,&. Micro-Enterprise loans(MEL) oO SME loans NCT of Delhi 5,00,0
Slide 7: Vision, Mission & Belief
Vision, Mission & Belief 'l1ie <l"ower of<Distri6uti.cm VISION To be one of the most efficient distributors of financial services and create value on a very large scale. MISSION To constantly endeavour, to attain excellence and create a very wide Financial distribution network and to be catalyst; in
Slide 8: Major events and milestones in the history
Major events and milestones in the history '1ne <l"ower of<Distri6uti.cm AUM crossed INR 40 Bn. 2019 Bank loan rating upgraded to “Care A+” with Stable outlook and Short term rating assigned as CARE A1+. 2018 Listing of Equity Shares on Bombay Stock Exchange & National Stock Exchange 2017 AUM crosse
Slide 9: Diversified product offerings presenting significant growth opportunities
Diversified product offerings presenting significant growth opportunities -me <Power' of <Distri6ution MAS focuses on serving the underserved credit needs of mid and low income group segments Micro-Enterprise Loans SME Loans Loans of up to INR 300,000 to Micro-Enterprises Loans of up to INR 50 m
Slide 10: Recent Growth in Overall AUM
Recent Growth in Overall AUM 'l1ie <l"ower of<Distri6uti.cm MAS’ has exhibited steady growth in AUM over the years AUM by Product Category (INR Mn) Segment growth 1,442 1,462 YOY 3,860 Jun-17 vs Jun-18 3,624 1,223 10,068 Commercial Vehicle loans 1,221 10,295 3,193 2,854 17.86% 1,439 2-Wheeler loans
Slide 11: Robust and Comprehensive Credit Assessment and Risk Management Framework
Robust and Comprehensive Credit Assessment and Risk Management Framework 'l1ie <l"ower of<Distri6uti.cm 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 Analysis of bu
Slide 12: Retail Presence and Distribution
Retail Presence and Distribution '11ie <Power of<Distri6ution 500,000+ active customers across 3,323 locations in Rural, semi urban and urban locations Presence in the high growth markets in West and South Delhi NCT Rajasthan I MAS has expanded to 78 branches in 6 I • Branches - B l • Bran<h-1 sta
Slide 13: Unique and Robust Distribution Network Through NBFC Partners
Unique and Robust Distribution Network Through NBFC Partners 'l1ie <l"ower of<Distri6uti.cm Efficient last mile delivery of credit Value chain approach has proven to across its product range namely MEL, be the most potent one to solve SME, 2 Wheeler and Commercial informality because of proximity to
Slide 14: Unique and Robust Distribution Network Through NBFC Partners
Unique and Robust Distribution Network Through NBFC Partners 'l1ie <l"ower of<Distri6uti.cm Operational Dynamics Key Criteria for starting relationship: Promoters Product Financial Operational Capital Base Growth Strategy Evaluation Alignment Performance Excellence Credit Assessment Pre-Engagement D
Slide 15: Unique and Robust Distribution Network Through NBFC Partners
Unique and Robust Distribution Network Through NBFC Partners 'l1ie <l"ower of<Distri6uti.cm MAS NBFCs • Widen its network while maintaining a • Value addition in improving their systems relatively lower risk profile and operations which helps in scalability and Sustainability of business. • Establis
Slide 16: Unique and Robust Distribution Network Through NBFC Partners
Unique and Robust Distribution Network Through NBFC Partners 'l1ie <l"ower of<Distri6uti.cm TRACK RECORD • Started with 1 NBFC in 2008, currently • Have grown at a CAGR of around 40% having relationship with more than 100 in last five years across our product range such NBFCs having virtual presence
Slide 17: Consistent Growth in AUM and PAT
Consistent Growth in AUM and PAT '11ie <l"ower of<Distri6ution Asset Under Management (AUM) In INR Mn 41,145 31,561 25,650 20,052 13,910 10,123 5,118 6,909 2,682 3,884 1,510 2,312 2,597 20 Mar-1996 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Profit Afte
Slide 18: Key Achievements Highlights – Q1 FY19 vs Q1 FY18
Key Achievements Highlights – Q1 FY19 vs Q1 FY18 'TM �rof<Distri6ution AUM PAT ROTA* DER COB* ICR Q1 FY19 INR 42,575 Mn INR 336 Mn 4.88% 2.62 times 8.74 % 2.26 times 30% 46% 14% 34% 3% 16% Q1 FY18 INR 32,732Mn INR 230 Mn 4.27% 3.96 times 8.98 % 1.94 times ABBREVIATIONS AUM ASSET UNDER MANAGEMENT PAT
Slide 19: Financial Performance Trends – Q1 FY19
Financial Performance Trends – Q1 FY19 'l1ie <l"ower of<Distri6uti.cm In INR Mn Robust Performance ASSETS UNDER MANAGEMENT (AUM) NET WORTH 7,139 7,333 41,145 42,575 31,561 32,732 25,650 4,333 3,769 2,279 Mar-16 Mar-17 Mar-18 Jun-17 Jun-18 Mar-16 Mar-17 Mar-18 Jun-17 Jun-18 BORROWING ON & OFF BOOK AU
Slide 20: Financial Performance Trends – Q1 FY19
Financial Performance Trends – Q1 FY19 'l1ie <l"ower of<Distri6uti.cm In INR Mn Consistent Rise in … REVENUE NET INTEREST INCOME (NII) 2,760 4,279 3,415 2,939 1,902 1,599 1,222 813 978 603 FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 PROFIT BEFORE TAX (PBT) PROFIT AFTER TAX (P
Slide 21: Financial Performance Trends – Q1 FY19
Financial Performance Trends – Q1 FY19 'l1ie <l"ower of<Distri6uti.cm Focus on Efficiency RETURN ON AVG. TOTAL ASSET (ROTA)* RETURN ON AVG. AUM (ROAUM)* 4.88% 3.21% 4.41% 4.27% 2.84% 2.87% 3.51% 2.34% 2.36% 3.24% FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 RETURN ON AVG. NET
Slide 22: Financial Performance Trends – Q1 FY19
Financial Performance Trends – Q1 FY19 'l1ie <l"ower of<Distri6uti.cm OPERATING EXPENSE AS % OF NII* COST OF BORROWING (COB)* 9.22% 9.44% 34.38% 8.67% 8.98% 8.74% 31.75% 25.92% 26.50% 22.42% FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 Efficiently maintaining the quality of as
Slide 23: Financial Performance Trends – Q1 FY19
Financial Performance Trends – Q1 FY19 'l1ie <l"ower of<Distri6uti.cm Adequately Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO (CAR) 6.52 31.29% 29.48% 22.94% 23.80% 4.01 3.96 18.36% 2.50 2.62 Mar-16 Mar-17 Mar-18 Jun-17 Jun-18 Mar-16 Mar-17 Mar-18 Jun-17 Jun-18 Healthy Coverage INTER
Slide 24: Quality of the portfolio: Consistently maintained NPA
Quality of the portfolio : Consistently maintained 'l1ie <l"ower of<Distri6uti.cm Catalyst in growth of Entrepreneurs, not creating just borrowers NPA COMPARISON CHART* 1.50% 1.15% 1.17% 1.19% 1.08% 1.09% 1.00% 0.95% 0.99% 0.95% 0.93% 0.91% 0.50% 0.00% Mar-16 Mar-17 Mar-18 Jun-17 Jun-18 GROSS NPA NE
Slide 25: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality 'l1ie <l"ower of<Distri6uti.cm ASSET UNDER MANAGEMENT- DPD 8.00% 0.56% 0.68% 0.48% 6.00% 0.23% 0.86% 0.25% 0.32% 0.49% 0.48% 1.21% 0.58% 1.12% 1.14% 0.74% 0.91% 4.00% 1.41% 1.68% 1.67% 1.11% 1.23% 2.00% 3.30% 2.79% 2.86% 2.75% 2.87% 0.00% Mar-16 Mar-17 Mar-18
Slide 26: Eminent Board of Directors
Eminent Board of Directors '1ne <l"ower of<Distri6uti.cm Extensive industry experience and deep domain knowledge of financial services sector Mr. Kamlesh Chimanlal Gandhi, aged 52 years, is the Founder, Chairman and Managing Director of MAS since inception. He visualized the opportunities in the
Slide 27: Eminent Board of Directors
Eminent Board of Directors '1ne <l"ower of<Distri6uti.cm Extensive industry experience and deep domain knowledge of financial services sector He has been associated with the Company as a Director since November 1995 and as an independent Director since April 2014 He is a management graduate with
Slide 28: Reputed Marquee FIIs and DIIs have invested in MAS
Reputed Marquee FIIs and DIIs have invested in MAS '1ne <l"ower of<Distri6uti.cm Shareholding as on 30th June 2018 Marquee Non Promoter Shareholders TIMF HOLDINGS Foreign SCHRODER INTERNATIONAL SELECTION FUND Portfolio INDIAN OPPORTUNITIES Investor Mutual Fund Trust 3.97% Others ( SAMSUNG INDIA SMAL
Slide 29: Going Forward
Going Forward……….. 'l1ie <l"ower of<Distri6uti.cm Asset Creation • To anchor to our belief that, growth with quality will enhance the shareholders value. • Anticipated growth for the next five years to be in the range of 20% - 30% and maintain healthy ROA and ROCE, which will be among the best in th
Slide 30: Financial Statement: FY16 – Q1 FY19
Financial Statement: FY16 – Q1 FY19 'l1ie <l"ower of<Distri6uti.cm PROFIT & LOSS STATEMENT INR Mn FY 2016 FY 2017 FY 2018 Q1 FY 2019 Total Revenue 2939.06 3415.17 4,278.73 1,221.54 Expenses Finance Costs 1339.86 1513.15 1518.48 408.97 Operating Expense 549.87 603.94 715.45 182.18 Provisions and Loan
Slide 31: MAS Rural Housing & Mortgage Finance Limited – Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) – Subsidiary 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 incorpo
Slide 32: Financial Performance Trends – Q1 FY19 MRHMFL
Financial Performance Trends – Q1 FY19 MRHMFL In INR Mn ASSETS UNDER MANAGEMENT (AUM) NET WORTH 320 329 2,096 300 302 2,040 1,786 260 1,764 1,341 Mar-16 Mar-17 Mar-18 Jun-17 Jun-18 Mar-16 Mar-17 Mar-18 Jun-17 Jun-18 BORROWING GROSS NPA & NET NPA 1,678 1,718 0.44% 0.41% 1,469 0.36% 1,420 0.34%0.36% 0
Slide 33: Financial Performance Trends – Q1 FY19 MRHMFL
Financial Performance Trends – Q1 FY19 MRHMFL In INR Mn REVENUE NET INTEREST INCOME (NII) 273 118 233 103 157 74 66 73 32 28 FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 PROFIT BEFORE TAX PROFIT AFTER TAX 34 25 29 19 22 15 13 9 11 7 FY-16 FY-17 FY-18 Q1 FY18 Q1 FY19 FY-16 FY-1
Slide 34: IND-AS Impact: MAS Financial Services Limited
IND – AS IMPACT MAS FINANCIAL SERVICES LIMITED SLIDE: 33
Slide 35: Reconciliation of profit from I-GAAP to IND-AS
Reconciliation of profit from I-GAAP to IND - AS 'l1ie <l"ower of<Distri6uti.cm IN INR MN Particulars Q1 FY 18 FY 18 Q1 FY 19 Profit After Taxes (based on I-GAAP) 230.40 1033.70 335.70 Impact of Adopting EIR on Financial Assets -3.60 -6.60 7.40 Impact of Adopting EIR on Financial Liabilities 0.00 1.
Slide 36: Impact of IND-AS on Net worth
Impact of IND – AS on Net worth 'l1ie <l"ower of<Distri6uti.cm IN INR MN 01-Apr-17 31-Mar-18 Particulars Net Net Equity Reserves Equity Reserves Worth Worth Closing Net worth As per IGAAP 904.27 2365.15 3269.42 546.62 6592.60 7139.22 IND - AS Adjustments Adoption of EIR for Financial Asset and Liabi
Slide 37: Credit Quality
Credit Quality 'l1ie <l"ower of<Distri6uti.cm IN INR MN Jun-18 Jun-17 Particulars AUM Provision AUM Provision Stage 1 26124.17 80.78 20379.75 56.50 Stage 2 1104.36 114.68 747.99 72.23 Stage 3 366.43 53.04 279.65 35.18 TOTAL ON BOOK 27594.96 248.50 21407.40 163.91 Assigned Portfolio 15575.00 N/A 1172
Slide 38: IND-AS Impact: MAS Rural Housing and Mortgage Finance Limited
Credit quality Analysis – Provisioning Coverage as per IND - AS 'IM <l"ower of<Distri6uti.cm As on June 30, As on June 30, As on March 31, Particulars 2018 2017 2018 IND – AS IMPACT Total Assets Gross NPA (Stage 3) Less: ECL Provisions (Stage 3) MAS RURAL HOUSING AND Net NPA (Stage 3) Gross NPA% (St
Slide 39: Reconciliation of profit from I-GAAP to IND-AS
Reconciliation of profit from I-GAAP to IND - AS IN INR MN Particulars Q1 FY 18 FY 18 Q1 FY 19 Profit After Taxes (based on I-GAAP) 7.14 24.99 8.97 Impact of Adopting EIR on Financial Assets 0.50 -0.78 -0.94 Impact of Adopting EIR on Financial Liabilities -0.19 -0.75 -0.64 Impact of Income accrues o
Slide 40: Impact of IND-AS on Net worth
Impact of IND – AS on Net worth IN INR MN 01-Apr-17 31-Mar-18 Particulars Net Net Equity Reserves Equity Reserves Worth Worth Closing Net worth As per IGAAP 220.35 79.56 299.91 220.35 99.75 320.10 Ind AS Adjustments Adoption of EIR for Financial Asset and Liability -10.59 -1.53 Adjustment on account
Slide 41: Credit Quality
Credit Quality IN INR MN Jun-18 Jun-17 Particulars AUM Provision AUM Provision Stage 1 1976.29 3.53 1686.22 4.20 Stage 2 92.05 4.66 65.68 2.95 Stage 3 7.44 2.04 8.13 2.27 TOTAL ON BOOK 2075.78 10.23 1760.03 9.42 Assigned Portfolio 26.54 N/A 32.48 N/A TOTAL AUM 2102.31 1792.51 Particulars Jun-18 Jun-
Slide 42: Glossary
Glossary '11ie <l"ower of<Distri6ution AUM Assets Under Management EIR Effective Interest Rate Bn Billion ECL Estimated Credit Loss CCPS Compulsorily Convertible Preference Shares OCPS Optionally Convertible Preference Share COB Cost of Borrowing CRAR Capital To Risk Assets Ratio DPD Days Past Due F
Slide 43: Investor Contact
'Ihe (l'ower of Distribution BEST WISHES INVESTOR CONTACT Name: Ankit Jain Designation: VP- Finance Contact No.: 079-41106682 Email ID: ankit_jain@mas.co.in
MAS Financial Services — Q1 FY19 Earnings Presentation on 6ix