Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q4 FY22 Earnings Presentation
42 slides from Mas Financial Services's earnings presentation, May 4, 2022
Slide 1: Exchange filing cover letter
@AF {HS FINANCIAL SERVICES LIMITED The Power ofDistribution 'Ifu tPnter of <Distrifiution fibfr FINANCIAL LITVITED SERVICES MFSL/SEC/EQ/2022/28 May 04, 2022 May 04,2022 MFSL/SEC/EAl2o22l28 To, To, The Manager, To, General Manager To, BSE Limited GeneralManager National Stock Exchange of India Limite
Slide 2: Investor Presentation – Q4 FY22
9A? # ENDEAVOURS ENDEAVOURS Te Power ofDistri6ution Power ofDistri6ution INVESTOR PRESENTATION – Q4 FY22 LIT 2021-22
Slide 3: Disclaimer
Disclaimer 25° tori%ls 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 restricti
Slide 4: Table of Content
Table of Content 25° 25° socio~s 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- F
Slide 5: MAS at a Glance
MAS at a Glance 25° evwtio»rs evwtio»rs I 25 Years of Endeavours Strong Retail Presence & Distribution Network 62,468 Mn. 6 125 Rajasthan • f f Delhi NCR • 1 branch g, 19 branches covering major towns AUM States and NCR of Delhi Branches g, •' Gujarat • 54 branches ' across the state Madhya Pradesh
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 evwtio»rs Asset Under Management (AUM) --- --- --- --- --- --- -- -- .. --- 62,468 --- --- --- 53,384 59,663 53,724 41,570 31,561 25,650 20,052 --- --- --- --- --- 13,910 --- 1,510 2,312 2,597 2,682 3,884 5,118 6,909 10,123 20 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q
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+ nee«4+ 25° sot7ors sot7ors (AUM) CAGR 24.58%* 62,468 2,312 • Despite various micro and macro headwinds including demonetisation, GST, NBFC liquidity FY07 FY
Slide 9: Leveraging technology across spectrum
Leveraging technology across spectrum 9A' 9A' z; le ewer ofDistribution ewer of Distribution ENDEAVOURS ENDEAVOURS 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 • C
Slide 10: Strong Fundamentals
Strong Fundamentals 25° evwtio»rs 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 multip
Slide 11: Diversified product offerings presenting significant growth opportunities
Diversified product offerings presenting significant 25° evwtio»rs evwtio»rs growth opportunities MAS focuses on serving the underserved credit needs of mid and low income group segments 1--------------------------------------------------------------------, 1-----------------------------------------
Slide 12: AUM by Product Category
AUM by Product Category 25° evwtio»rs evwtio»rs AUM by Product Category (INR Mn.) Segment Performance ■ Micro-Enterprise loans(MEL) ■ SME loans ■ 2-Wheeler loans ■ Commercial Vehicle loans March -22 vs March-21 - - - - - ---- -.__ I - -.__ 16.27% ___.I I __ __ ___.I - ---- --- -> 59,663 62,468 3,452
Slide 13: Liability Management
Liability Management 25° evwtio»rs evwtio»rs SOURCES OF FUND BORROWING as on 31st March 2022 COST OF BORROWING (COB)* 45,501 CASH CREDIT, 9.32% 9.10% 28% 8.75% 8.75% 8.67% DIRECT ASSIGNMENT (Incl. Co- 36,606 lending), 21% 31,227 SECURITISATION, 1% NON-CONVERTIBLE DEBENTURES, 7% SUB DEBT, 3% Mar-20 M
Slide 14: Going Forward
Going Forward 25° evwtio»rs 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
Slide 15: Financial Review
25° rvotiobs socio~ FINANCIAL REVIEW 14
Slide 16: Key Highlights – Q4 FY22
Key Highlights – Q4 FY22 ASSET UNDER MANAGEMENT (AUM) %%%% %%%% PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH* INR 62,468 Mn. 0 16.27 % (March - 21: INR 53,724 Mn.) INR 426 Mn. 16.55% (Q4 FY21: INR 365 Mn.) 14.47% RETURN ON AVG. BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (C
Slide 17: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 25° evwtio»rs evwtio»rs ASSETS UNDER MANAGEMENT (AUM) NET WORTH 11.59% 16.27% 1···············································: 13085 59,663 62,468 11726 53,724 9809 Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 ON & OFF BOOK AUM ■ ON BOOK ■ OFF BOOK 25% 19% 44% 75% 81% 5
Slide 18: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 25° evwtio»rs evwtio»rs REVENUE NET INTEREST INCOME (NII) 6,727 6,575 5,939 29.66% 4005 3294 3379 15.14% 1,804 1,391 781 899 FY20 FY21 FY22 Q4 FY21 Q4 FY22 FY20 FY21 FY22 Q4 FY21 Q4 FY22 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) 921 864 581 50.04% 1666 1578 1435 16.55
Slide 19: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 25° evwtio»rs evwtio»rs RETURN ON AVG. NET WORTH (RONW)** RETURN ON AVG. AUM (ROAUM)* 19.30% 2.95% 2.80% 2.84% 2.72% 2.53% 14.65% 14.05% 14.14% 14.47% FY20 FY21 FY22 Q4 FY21 Q4 FY22 FY20 FY21 FY22 Q4 FY21 Q4 FY22 ** Networth considered without OCI 18 * Quarterly figur
Slide 20: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 25° evwtio»rs evwtio»rs Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)*^ OPERATING EXPENSE AS % OF INCOME^ 1.96% 16.28% 14.02% 14.07% 1.53% 1.59% 1.50% 12.84% 9.78% 1.02% FY20 FY21 FY22 Q4 FY21 Q4 FY22 FY20 FY21 FY22 Q4 FY21 Q4 FY22 Efficiently maintainin
Slide 21: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 25° evwtio»rs evwtio»rs Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO *(CAR) 3.48 3.18 3.12 29.70% 26.85% 26.35% Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 INTEREST COVERAGE RATIO (ICR) 1.84 1.82 1.73 1.66 1.63 Healthy Coverage FY20 FY21 FY22 Q4
Slide 22: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality 25° evwtio»rs evwtio»rs ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 1.59% 1.01% 0.35% 1.69% 4.00% 0.41% 1.25% 0.58% 0.91% 0.82% 1.22% 0.88% 2.00% 0.87% 1.75% 1.87% 1.42% 0.00% Mar-20 Mar-21 Mar-22 ■ 1 – 30 DPD ■ 31 – 60 DPD ■ 61 – 90 DPD ■ 91 –120 DPD ■ > 120 DPD
Slide 23: Credit Quality
Credit Quality 25° evwtio»rs evwtio»rs (In INR Mn.) March-22 March-21 Particulars AUM Provision AUM Provision Stage 1 48866.98 175.80 39060.66 130.40 Stage 2 902.64 92.10 792.64 73.95 Stage 3 1050.09 361.21 644.25 225.79 TOTAL ON BOOK 50819.71 629.11 40497.54 430.14 Assigned Portfolio 11648.29 N/A 1
Slide 24: Constantly maintaining quality portfolio
Constantly maintaining quality portfolio 25° evwtio»rs evwtio»rs Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 2.50% 2.30% 2.35% 2.28% 2.21% 1.94% 2.00% 1.42% 1.80% 1.50% 1.74% 1.76% 1.70% 1.52% 1.00% 1.14% 0.50% 0.00% Mar-20 Mar-21 June-21 Sept-21 Dec-21 Mar-22 GRO
Slide 25: Reputed Marquee FIIs and DIIs shareholders base
Reputed Marquee FIIs and DIIs shareholders base 25° evwtio»rs evwtio»rs Shareholding as on 31st March 2022 Marquee Non Promoter Shareholders MOTILAL PRIVATE EQUITY Mutual Fund 8.13% AXIS MUTUAL FUND IDFC MUTUAL FUND Trust TATA AIA LIFE INSURANCE 7.40% MOTILAL OSWAL MUTUAL FUND ■ Foreign Portfolio AS
Slide 26: Financial Statement: FY20 – FY2021-22
Financial Statement: FY20 – FY2021-22 PROFIT & LOSS STATEMENT 25° evwtio»rs evwtio»rs INR Mn. FY 2020 FY 2021 FY 2021-22 Total Revenue 6727 5939 6575 Expenses 4446 4010 4458 Finance Costs 2722 2645 3195 Operating Expense 864 581 921 Provisions and Loan Losses 859 784 341 Profit Before Tax 2282 1929
Slide 27: MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
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 – Q4 FY22
Financial Performance – Q4 FY22 ASSETS UNDER MANAGEMENT (AUM) NET WORTH 11.04% 13.88% 1···············································: 1···············································: 3,163 614 2,865 2,849 539 510 Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 BORROWING REVENUE 2,225 2,269 2,220 384 35
Slide 30: Financial Performance – Q4 FY22
Financial Performance – Q4 FY22 PROFIT AFTER TAX (PAT) NET INTEREST INCOME (NII) 156 140 142 499.95% 4.59% 46 29 17 2 12 38 40 FY20 FY21 FY22 Q4 FY21 Q4 FY22 FY20 FY21 FY22 Q4 FY21 Q4 FY22 GROSS STAGE 3 ASSETS # NET STAGE 3 ASSETS # 0.65% 0.69% 0.59% 0.53% 0.46% 0.49% 0.34% 0.37% 0.42% 0.38% 0.25% 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 31st March 2022 • The Company continues to demonstrate its capability of efficient liability management. • Capital adequacy ratio, as on 31st March 2022 is 55.27% agai
Slide 32: Credit Quality
Credit Quality Stage 1 Stage 2 Stage 3 Particulars TOTAL ON BOOK AUM March-22 2326.76 183.03 16.26 2526.04 Provision 2.34 10.34 4.83 17.51 ---- AUM March-21 2,470.90 162.91 9.84 2643.66 Provision 2.20 8.44 2.93 13.57 (In INR Mn.) Assigned Portfolio 637.36 N/A 205.29 N/A -- TOTAL AUM 3163.41 2848.95
Slide 33: Understanding MAS
25° rvotiobs socio~ UNDERSTANDING MAS 32
Slide 34: About MAS
About MAS 25° 25° is»riots 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 an
Slide 35: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network 25° evwtio»rs 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 nam
Slide 36: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network 25° evwtio»rs 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 ri
Slide 37: Sharpening the learning curve (3/3)
Sharpening the learning curve(3/3) 25° rvwciri 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 15,000 Crore
Slide 38: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & 25° evwtio»rs evwtio»rs Risk Management Framework ,------------------------------------------------------------------------------. ,------------------------------------------------------------------------------. MAS aims to give credit where it is due wit
Slide 39: Team MAS
Team MAS 25° evwtio»rs evwtio»rs EXPERIENCED PROMOTER Mr. Kamlesh Chimanlal Gandhi, aged 56 years, is the Founder, Chairman and Managing Director of MAS since inception. He visualized the opportunities in the retail financial services very early and has been leading the strategic initiatives and
Slide 40: Team MAS
9A' 9A' Team MAS le tower tower of ofDistribution Distribution z z ENDEAVOURS 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 I
Slide 41: Major events and milestones
Major events and milestones ·or ·or of ofoutridnt outridntiiion ion 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 lo
Slide 42: Registered office and investor contact
THROUGH A FINANCIAL SERVICES FINANCIAL SERVICES LT; Te Power Te ofDistribution Power of Distribution 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. Nishant Vyas Chief Financial Office
MAS Financial Services — Q4 FY22 Earnings Presentation on 6ix