Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q1 FY2023 Earnings Presentation
42 slides from Mas Financial Services's earnings presentation, Aug 3, 2022
Slide 1: Cover letter to stock exchanges
&AF 8HS FINANCIAL SERVICES LIMITED tfu@rundDlaihutton ffbfr The ower ofDistribution FINANCIAL SERVICES LIMITED M FSL/SEC/EQ/2022/56 August 03, 2022 August 03,2022 MFSL/SEC/EOl2O22ls6 To, To, The Manager, To, General Manager To, Manager BSE Limited General National Stock Exchange of India Limited The
Slide 2: Investor Presentation – Q1 FY23
9A? # ENDEAVOURS Te Power ofDistri6ution INVESTOR PRESENTATION – Q1 FY23 LIT 2021-22
Slide 3: Disclaimer
Disclaimer 25° rvosiob~s 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. Thi
Slide 4: Table of Content
Table of Content 25° rsoti%rs 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- Q1 FY 2023 26
Slide 5: MAS at a Glance
MAS at a Glance 25° evwtio»rs I 25+ Years of Endeavours Strong Retail Presence & Distribution Network 66,839 Mn. 6 135 Rajasthan • 19 branches covering major towns f Delhi NCR • 1 branch AUM States and NCR of Delhi Branches g, •' Gujarat • 55 branches ' across the state Madhya Pradesh 6,000+ 6,95,00
Slide 6: Growth
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO 5
Slide 7: Journey of 108 Quarters
Journey of 108 Quarters 25° evwtio»rs -- . Asset Under Management (AUM) --- --- --- 62,468 --- --- 53,384 59,663 53,724 41,570 31,561 25,650 20,052 13,910 20 --- --- --- 1,510 2,312 2,597 2,682 3,884 5,118 6,909 10,123 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q 104Q 108Q - - --
Slide 8: Growing consistently and steadily
Growing consistently and steadily- Our growth journey of LAST 15 YEARS SINCE OUR FIRST CAPITAL RAISE… ASSETS UNDER MANAGEMENT 4r%is «fut nee«4+ 25° sot7ors (AUM) CAGR 24.58%* 62,468 2,312 • Despite various micro and macro headwinds including demonetisation, GST, NBFC liquidity FY07 FY22 crisis, and
Slide 9: Leveraging technology across spectrum
Leveraging technology across spectrum qe Power ofDistribution 25° esotio~ks 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
Slide 10: Strong Fundamentals
Strong Fundamentals 25° evwtio»rs 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 headwin
Slide 11: Diversified product offerings presenting significant growth opportunities
Diversified product offerings presenting significant 25° evwtio»rs growth opportunities MAS focuses on serving the underserved credit needs of mid and low income group segments 1--------------------------------------------------------------------, Micro-Enterprise INR 35,191 Mn. '' Loans of up to
Slide 12: AUM by Product Category
AUM by Product Category 25° evwtio»rs AUM by Product Category (INR Mn.) Segment Performance ■ Micro-Enterprise loans(MEL) ■ SME loans ■ 2-Wheeler loans ■ Commercial Vehicle loans June -22 vs June-21 62,468 66,839 27.42% 59,663 3,324 Micro-Enterprise loans (MEL) 53,724 3,452 3,864 1,547 3,774 4,003 5
Slide 13: Liability Management
Liability Management 25° evwtio»rs SOURCES OF FUND BORROWING as on 30th June 2022 COST OF BORROWING (COB)* 9.32% 9.10% 50,520 CASH CREDIT, 26% 8.75% 8.72% 8.64% 45,501 DIRECT ASSIGNMENT (Incl. Co-lending), 20% 36,606 35,429 31,227 SECURITISATION, 1% NON-CONVERTIBLE DEBENTURES, 9% Mar-20 Mar-21 Mar-2
Slide 14: Going Forward
Going Forward 25° evwtio»rs 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,
Slide 15: Financial Review
25° socio~ FINANCIAL REVIEW 14
Slide 16: Key Highlights – Q1 FY23
Key Highlights – Q1 FY23 ASSET UNDER MANAGEMENT (AUM) %%%% PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH* INR 66,839 Mn. 0 29.49 % (June -21: INR 51,616 Mn.) INR 465 Mn. 26.33% (Q1 FY22: INR 368 Mn.) 15.28% RETURN ON AVG. BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (COB) %%#
Slide 17: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 25° evwtio»rs ASSETS UNDER MANAGEMENT (AUM) NET WORTH 29.49% 11.47% 66,839 13,085 13,490 59,663 62,468 12,102 11,726 53,724 51,616 9,809 Mar-20 Mar-21 Mar-22 June-21 June-22 Mar-20 Mar-21 Mar-22 June-21 June-22 ON & OFF BOOK AUM ■ ON BOOK ■ OFF BOOK 25% 19% 22% 18% 44
Slide 18: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 25° evwtio»rs REVENUE NET INTEREST INCOME (NII) 6,727 6,575 5,939 33.56% 4,005 3,294 3,379 34.29% 1,983 1,485 786 1,055 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) 921 864 581 140.37% 1,666 1,578 1,435 26.33%
Slide 19: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 25° evwtio»rs RETURN ON AVG. NET WORTH (RONW)** RETURN ON AVG. AUM (ROAUM)* 19.30% 2.95% 2.88% 2.72% 2.80% 2.53% 14.65% 15.28% 14.05% 13.76% FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 ** Networth considered without OCI 18 * Quarterly figures have be
Slide 20: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 25° evwtio»rs Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)^* OPERATING EXPENSE AS % OF INCOME^* 2.15% 17.54% 14.02% 1.53% 1.59% 12.84% 9.78% 9.74% 1.02% 1.10% FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 Efficiently maintaining the qual
Slide 21: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 25° evwtio»rs Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO *(CAR) 3.74 3.48 29.70% 3.18 3.12 28.42% 2.93 26.85% 26.35% 25.28% Mar-20 Mar-21 Mar-22 June-21 June-22 Mar-20 Mar-21 Mar-22 June-21 June-22 INTEREST COVERAGE RATIO (ICR) 1.84 1.73 1.6
Slide 22: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality 25° evwtio»rs ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 1.59% 1.80% 1.01% 0.35% 1.69% 0.41% 1.75% 4.00% 0.41% 1.25% 1.36% 0.58% 0.91% 0.53% 0.82% 0.33% 1.22% 0.88% 2.00% 1.79% 0.87% 1.39% 1.75% 1.87% 1.42% 1.13% 1.09% 0.00% Mar-20 Mar-21 Mar-22 June-21 June-22 ■
Slide 23: Credit Quality
Credit Quality 25° evwtio»rs (In INR Mn.) June-22 June-21 Particulars AUM Provision AUM Provision Stage 1 52953.04 162.89 38630.00 125.70 Stage 2 976.52 85.04 1104.31 96.94 Stage 3 1176.73 434.94 736.66 242.63 TOTAL ON BOOK 55106.30 682.86 40470.96 465.28 Assigned Portfolio 11732.89 N/A 11145.39 N/A
Slide 24: Constantly maintaining quality portfolio
Constantly maintaining quality portfolio 25° evwtio»rs Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 2.50% 2.30% 2.35% 2.28% 2.27% 2.21% 1.94% 2.00% 1.42% 1.80% 1.50% 1.74% 1.76% 1.70% 1.63% 1.52% 1.00% 1.14% 0.50% 0.00% Mar-20 Mar-21 June-21 Sept-21 Dec-21 Mar-22 J
Slide 25: Reputed Marquee FIIs and DIIs shareholders base
Reputed Marquee FIIs and DIIs shareholders base 25° evwtio»rs Shareholding as on 30th June 2022 Marquee Non Promoter Shareholders MOTILAL PRIVATE EQUITY Mutual Fund 7.96% AXIS MUTUAL FUND IDFC MUTUAL FUND Trust TATA AIA LIFE INSURANCE 7.40% MOTILAL OSWAL MUTUAL FUND ■ Foreign Portfolio Investor ASK
Slide 26: Financial Statement: FY20 – Q1 FY2022-23
Financial Statement: FY20 – Q1 FY2022-23 PROFIT & LOSS STATEMENT 25° evwtio»rs INR Mn. FY 2020 FY 2021 FY 2022 Q1 FY2023 Total Revenue 6727 5939 6575 1983 Expenses 4446 4010 4458 1361 Finance Costs 2722 2645 3195 928 Operating Expense 864 581 921 348 Provisions and Loan Losses 859 784 341 85 Profit
Slide 27: MAS Rural Housing & Mortgage Finance Limited (MRHMFL)
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary 26
Slide 28: 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 29: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 ASSETS UNDER MANAGEMENT (AUM) NET WORTH 6.82% 16.46% ······························1 614 616 3,432 577 3,163 510 539 2,865 2,849 2,947 Mar-20 Mar-21 Mar-22 June-21 June-22 Mar-20 Mar-21 Mar-22 June-21 June-22 BORROWING REVENUE* 2,375 2,445 2,225 2,269 2,220 384 353 35
Slide 30: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 PROFIT AFTER TAX (PAT) NET INTEREST INCOME (NII) 156 140 142 29.86% 13.65% 46 29 17 11 36 41 8 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 GROSS STAGE 3 ASSETS # NET STAGE 3 ASSETS # 0.65% 0.69% 0.59% 0.53% 0.54% 0.46% 0.49% 0.34% 0.37% 0.42% 0.38% 0
Slide 31: Liability Management
Liability Management • The composition of our liability mix ensures healthy ALM and well diverse resource mix. Sources of Fund as on 30th June 2022 • The Company continues to demonstrate its capability of efficient liability management. • Capital adequacy ratio, as on 30th June 2022 is 46.43% agains
Slide 32: Credit Quality
Credit Quality Stage 1 Stage 2 Stage 3 Particulars TOTAL ON BOOK AUM June-22 2653.51 161.67 17.88 2833.06 Provision 3.05 9.25 5.30 17.60 ---- AUM June-21 2374.05 210.66 16.68 2601.38 Provision 1.85 11.09 4.95 17.90 (In INR Mn.) Assigned Portfolio 599.01 N/A 345.59 N/A TOTAL AUM 3432.06 2946.97 Parti
Slide 33: Understanding MAS
25° socio~ UNDERSTANDING MAS 32
Slide 34: About MAS
About MAS 25° rvosiob~s VISION MISSION Jl 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” crea
Slide 35: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network 25° evwtio»rs 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, t
Slide 36: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network 25° evwtio»rs 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
Slide 37: Sharpening the learning curve (3/3)
Sharpening the learning curve(3/3) 25° rvwciri 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 17,500 Crore diligen
Slide 38: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & 25° evwtio»rs Risk Management Framework ,------------------------------------------------------------------------------. MAS aims to give credit where it is due with the dictum of adherence and adaptability �-----------------------------------------------
Slide 39: Team MAS
Team MAS 25° evwtio»rs EXPERIENCED PROMOTER Mr. Kamlesh Chimanlal Gandhi, aged 56 years, is the Founder, Chairman and Managing Director of MAS since inception. He is a proficient and experienced industry practitioner with a brilliant track record, which includes over two decades of managing and
Slide 40: Team MAS
Team MAS 9A' le tower ofDistribution z ENDEAVOURS 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 Direc
Slide 41: Major events and milestones
Major events and milestones ·or ofoutridntiion 25° ENDEAVOURS □ □ □ 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. 2
Slide 42: Registered office and investor contact
THROUGH A FINANCIAL SERVICES LT; Te Power ofDistribution 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. Ninad Solanky Chief Financial Officer Investor Relations Manager 079-41106682 0
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