Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q2 FY23 Earnings Presentation
42 slides from Mas Financial Services's earnings presentation, Nov 2, 2022
Slide 1: Cover letter to stock exchanges
<Power ofDistribution The Qwer 81S FtNANctAL ffibF FINANCIAL sERVtcES LIMITED SERVICES LtMtrED fiTu tDist ifiutfun MFSL/SEC/EQ/2022/77 M FSL/SEC/EQ/2O22/77 November 02, 2022 Novembe r 02,2022 To, To, To, To, The Manager, The Manager, General Manager General Manager BSE Limited BSE limited National S
Slide 2: Investor Presentation – Q2 FY23
9A z ENDEAVOURS Te Power ofDistribution INVESTOR PRESENTATION – Q2 FY23 LT1 2021-22
Slide 3: Disclaimer
Disclaimer 25° rosiobs 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
Slide 4: Table of Contents
Table of Contents 25° evweirs 1 MAS AT A GLANCE 04 2 GROWTH STORY 05 3 LEVERAGING TECHNOLOGY ACROSS SPECTRUM 08 4 STRONG FUNDAMENTALS 09 5 PRODUCT OFFERINGS 10 6 LIABILITY MANAGEMENT 12 7 GOING FORWARD 13 8 FINANCIAL REVIEW 14 9 CREDIT QUALITY 21 10 REPUTED MARQUEE INVESTORS 24 11 FINANCIAL STATEMEN
Slide 5: MAS at a Glance
MAS at a Glance 25° evweirs [25+ Years of Endeavours 7 Strong Retail Presence & Distribution Network Delhi NCR • 1 branch Rajasthan Chhattisgarh l 71,381 Mn. 7 147 : • 1 branch : • 22 branches covering , major towns AUM States and NCR Branches of Delhi Gujarat • ' 59 branches ' across the state ----
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° evweirs Asset Under Management (AUM) --- --- -- --➔ --- --- --- 59,663 62,468 53,384 53,724 41,570 31,561 25,650 20,052 20 --- --- --- 1,510 2,312 2,597 2,682 3,884 5,118 6,909 10,123 13,910 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- 9A Our growth journey of LAST 15 YEARS SINCE OUR FIRST CAPITAL RAISE… z ENDEAVOURS ASSETS UNDER MANAGEMENT (AUM) CAGR 24.58%* 62,468 2,312 • Despite various micro and macro headwinds including demonetisation, GST, NBFC liquidity FY07 FY22 crisis, and COVID, MAS has
Slide 9: Leveraging technology across spectrum
Leveraging technology across spectrum 'le tower ofDistribution 25° eotivos 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 O
Slide 10: Strong Fundamentals
Strong Fundamentals 25° evweirs 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 headwinds
Slide 11: Diversified product offerings presenting significant growth opportunities
Diversified product offerings presenting significant 25° evweirs growth opportunities MAS FOCUSES ON SERVING THE UNDERSERVED CREDIT NEEDS OF MID AND LOW INCOME GROUP SEGMENTS .--------------------------------------------------------------------, Micro-Enterprise INR 35,897 Mn. '' ▪ Loans of up to IN
Slide 12: AUM by Product Category
AUM by Product Category 25° evocios Segment Performance Sept -22 vs. Sept-21 AUM by Product Category (INR Mn.) ■ Micro-Enterprise loans(MEL) ■ SME loans ■ 2-Wheeler loans ■ Commercial Vehicle loans ■ Salaried Personal Loans 24.07% 71,381 Micro-Enterprise loans (MEL) 1,334 59,663 62,468 2,736 4,698 3
Slide 13: Liability Management
Liability Management 25° socio~s SOURCES OF FUND BORROWING as on 30th September 2022 COST OF BORROWING (COB)* CASH CREDIT, 25% 9.32% 9.10% 8.75% 8.71% 8.83% 58,398 45,501 DIRECT ASSIGNMENT 40,843 (Incl. Co-lending), 18% 36,606 31,227 SECURITISATION, 1% NON-CONVERTIBLE DEBENTURES, 9% Mar-20 Mar-21 Ma
Slide 14: Going Forward
Going Forward 25° evweirs 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, p
Slide 15: Financial Review
25° socio~s FINANCIAL REVIEW 14
Slide 16: Key Highlights – Q2 FY23
Key Highlights – Q2 FY23 ASSET UNDER MANAGEMENT (AUM) tee PROFIT AFTER TAX (PAT) le RETURN ON AVG. NET WORTH* INR 71,381 Mn. 0 30.13 % (September-21: INR 54,852 Mn.) INR 491 Mn. 0 28.04% (Q2 FY22: INR 383Mn.) 15.57% RETURN ON AVG. BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (C
Slide 17: Financial Performance – Q2 FY23
Financial Performance – Q2 FY23 25° evweirs ASSETS UNDER MANAGEMENT (AUM) NET WORTH 30.13% 10.39% 1································: 13,085 13,652 11,726 12,367 9,809 71,381 59,663 62,468 53,724 54,852 Mar-20 Mar-21 Mar-22 Sept-21 Sept-22 Mar-20 Mar-21 Mar-22 Sept-21 Sept-22 ON & OFF BOOK AUM ■ ON B
Slide 18: Financial Performance – Q2 FY23
Financial Performance – Q2 FY23 25° evweirs REVENUE NET INTEREST INCOME (NII) 6,727 6,575 5,939 4,005 3,294 3,379 46.73% 47.46% 2,300 1,192 1,568 808 FY20 FY21 FY22 Q2 FY22 Q2 FY23 FY20 FY21 FY22 Q2 FY22 Q2 FY23 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) 921 864 1,666 1,578 1,435 581 104.80% 416 28.0
Slide 19: Financial Performance – Q2 FY23
Financial Performance – Q2 FY23 25° evweirs RETURN ON AVG. NET WORTH (RONW)** RETURN ON AVG. AUM (ROAUM)* 19.30% 2.95% 2.88% 2.84% 2.72% 2.53% 15.57% 14.65% 14.05% 13.89% FY20 FY21 FY22 Q2 FY22 Q2 FY23 FY20 FY21 FY22 Q2 FY22 Q2 FY23 * Quarterly figures have been annualized. ** Networth considered wi
Slide 20: Financial Performance – Q2 FY23
Financial Performance – Q2 FY23 25° evweirs Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)^* OPERATING EXPENSE AS % OF INCOME^* 18.11% 2.41% 14.02% 12.84% 12.97% 1.53% 1.59% 1.53% 9.78% 1.02% FY20 FY21 FY22 Q2 FY22 Q2 FY23 FY20 FY21 FY22 Q2 FY22 Q2 FY23 Efficiently maintaining the quali
Slide 21: Financial Performance – Q2 FY23
Financial Performance – Q2 FY23 25° evweirs Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO *(CAR) 4.28 29.70% 26.85% 26.35% 25.62% 3.48 3.30 24.14% 3.18 3.12 Mar-20 Mar-21 Mar-22 Sept-21 Sept-22 Mar-20 Mar-21 Mar-22 Sept-21 Sept-22 INTEREST COVERAGE RATIO (ICR) 1.84 1.73 1.66
Slide 22: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality 25° evweirs ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 1.59% 1.88% 1.01% 0.35% 1.69% 4.00% 0.42% 1.58% 0.41% 1.25% 0.58% 0.63% 0.91% 0.68% 0.82% 1.22% 0.27% 0.88% 1.84% 2.00% 0.87% 0.99% 1.75% 1.87% 1.42% 1.36% 1.40% 0.00% Mar-20 Mar-21 Mar-22 Sept-21 Sept-22 ■ 1
Slide 23: Credit Quality
Credit Quality 25° evweirs (In INR Mn.) Sept-22 Sept-21 Particulars AUM Provision AUM Provision Stage 1 57619.18 188.74 42235.40 135.58 Stage 2 721.20 69.50 1070.69 108.75 Stage 3 1307.78 471.08 854.24 274.00 TOTAL ON BOOK 59648.16 729.32 44160.33 518.34 Assigned Portfolio 11732.95 N/A 10691.44 N/A
Slide 24: Constantly maintaining quality portfolio
Constantly maintaining quality portfolio 25° evweirs Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 2.50% 2.30% 2.35% 2.28% 2.27% 2.21% 2.26% 1.94% 2.00% 1.42% 1.80% 1.50% 1.74% 1.76% 1.70% 1.63% 1.60% 1.52% 1.00% 1.14% 0.50% 0.00% Mar-20 Mar-21 June-21 Sept-21 Dec-2
Slide 25: Reputed Marquee FIIs and DIIs shareholders base
Reputed Marquee FIIs and DIIs shareholders base 25° evweirs Shareholding as on 30th September 2022 Marquee Non Promoter Shareholders Mutual Fund 8.98% MOTILAL PRIVATE EQUITY AXIS MUTUAL FUND Trust IDFC MUTUAL FUND 7.40% PGIM MUTUAL FUND ■ Foreign Portfolio Investor TATA AIA LIFE INSURANCE 1.54% NIPP
Slide 26: Financial Statement: FY20 – H1 FY2022-23
Financial Statement: FY20 – H1 FY2022-23 25° evweirs PROFIT & LOSS STATEMENT INR Mn. FY 2020 FY 2021 FY 2022 H1 FY2023 Total Revenue 6727 5939 6575 4283 Expenses 4446 4010 4458 3007 Finance Costs 2722 2645 3195 2037 Operating Expense 864 581 921 764 Provisions and Loan Losses 859 784 341 206 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 – Q2 FY23
Financial Performance – Q2 FY23 ASSETS UNDER MANAGEMENT (AUM) NET WORTH 7.32% 27.38% 614 638 594 3,825 510 539 3,163 3,003 2,865 2,849 Mar-20 Mar-21 Mar-22 Sept-21 Sept-22 Mar-20 Mar-21 Mar-22 Sept-21 Sept-22 BORROWING REVENUE* 2,526 2,225 2,269 2,220 384 2,123 353 358 13.87% 92 105 Mar-20 Mar-21 Ma
Slide 30: Financial Performance – Q2 FY23
Financial Performance – Q2 FY23 PROFIT AFTER TAX (PAT) NET INTEREST INCOME (NII) 46 156 140 142 29 13.47% 28.90% 17 17 51 15 39 FY20 FY21 FY22 Q2 FY22 Q2 FY23 FY20 FY21 FY22 Q2 FY22 Q2 FY23 NET STAGE 3 ASSETS # GROSS STAGE 3 ASSETS # 0.65% 0.69% 0.59% 0.59% 0.53% 0.54% 0.46% 0.49% 0.42% 0.42% 0.38%
Slide 31: Liability Management
Liability Management Sources of Fund • The composition of our liability mix ensures healthy ALM and well diverse resource mix. as on 30th September 2022 • The Company continues to demonstrate its capability of efficient liability management. NHB • Capital adequacy ratio, as on 30th September 2022 is
Slide 32: Credit Quality
Credit Quality Stage 1 Stage 2 Stage 3 Particulars TOTAL ON BOOK -------- AUM Sept-22 2787.98 168.29 21.19 2977.46 Provision 2.81 9.56 6.30 18.67 AUM Sept-21 2270.98 192.25 18.99 2482.22 Provision 1.87 11.20 5.64 18.71 (In INR Mn.) Assigned Portfolio 847.09 N/A 520.33 N/A - TOTAL AUM 3824.55 3002.56
Slide 33: Understanding MAS
25° socio~s UNDERSTANDING MAS 32
Slide 34: About MAS
About MAS 25° evweirs VISION MISSION 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” create va
Slide 35: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network 25° evweirs 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, the
Slide 36: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network 25° evweirs 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 s
Slide 37: Sharpening the learning curve (3/3)
Sharpening the learning curve(3/3) 25° rvwci~ 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 18,500 Crore diligenc
Slide 38: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & .== er ef tr.6tic 25° evweirs Risk Management Framework MAS aims to give credit ................. where it is due with the dictum of adherence and adaptability I I ................ ___________ ) Robust credit assessment Credit assessment process overview
Slide 39: Team MAS
Team MAS 25° evweirs 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 pr
Slide 40: Team MAS
Team MAS 9A' z; le ewer ofDistribution 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 "" of Tl tower outr.ft Year 'of hi 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 201
Slide 42: Registered office and investor contact
THROUGH Fi~NCIAL SERVICES LTn 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 079-
MAS Financial Services — Q2 FY23 Earnings Presentation on 6ix