Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — 9M FY25 Earnings Presentation
37 slides from Aavas Financiers's earnings presentation, Jan 30, 2025
Slide 1: Stock exchange filing cover letter
Ref. No. AAVAS/SEC/2024-25/925 Date: January 30, 2025 To, To, The National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai – 400051 Mumbai – 400001 Scrip Code: 541988 Scrip Symbol: AAVAS Dear Sir/Madam, S
Slide 2: Investor Presentation – 9M FY25
AAVAS FINANCIERS LTD. Investor Presentation – 9M FY25
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aavas Financiers Ltd. (the “Company”), without any specific objectives and solely for information purposes and do not constitute directly or indirectly any advertisement, advise, offer, recomm
Slide 4: Our Background
Our Background Commenced operations in 2011 Regulated by Reserve Bank of India (“RBI”) from Jaipur, Rajasthan Supervised by National Housing Bank (“NHB”) Currently being run by professional management team backed by Recognized by NHB for refinance marquee private equity players facility Kedaara Capi
Slide 5: Our Pillars of Strength
Our Pillars of Strength Professional Management Team Experienced Board of Directors In-house Execution Model Technology and Data Analytics Improving Credit Ratings Diversified Shareholding Base
Slide 6: Aavas 3.0: Building a lasting institution
Aavas 3.0: Building a lasting institution Aavas 1.0 Aavas 2.0 Aavas 3.0 2012 2016 2023 AUM (INR Bn) Investment (2016) by: IPO (October 2018) 173.1 192.4 94.5 113.5 141.7 40.7 59.4 78.0 0.0 1.8 4.1 8.4 16.8 26.9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 9MFY25 FY28E # of 25 35
Slide 7: Strong Management Depth continues to drive Aavas's Outperformance
Strong Management Depth continues to drive Aavas's Outperformance Sachinder Bhinder Ghanshyam Rawat Ashutosh Atre Managing Director & CEO President & Chief Financial Officer President & Chief Risk Officer • 27+ years of experience • 30+ years of experience in financial • 30+ years of experience in c
Slide 8: Experienced Board has guided Aavas's journey since inception
Experienced Board has guided Aavas's journey since inception Sandeep Tandon Soumya Rajan Kalpana Kaushik Mazumdar Chairperson of Board, Independent Independent Director & Chairperson of Independent Director & Chairperson Director & Chairperson of Stakeholders Nomination & Remuneration Committee of A
Slide 9: Superior Business Outcome: In-house Execution Model
In-house Execution Model In-house execution model – Replicated across the states 1. Reduction in average login to sanction TAT (days) Lead generation and Risk management Collections sourcing Turn around time is a key metric for customer centricity ▪ With our new Lead ▪ In-house underwriting team for
Slide 10: State-of-the art technology implementation enabling digital & analytical capabilities
State-of-the art technology implementation enabling digital & analytical capabilities LOS LMS Enterprise GL A New digital loan origination Adopting a next-gen cloud ERP system platform (LOS) and customer service Adopting a new loan management for back-office process automations to system to enable b
Slide 11: Major Technology transformation Completed
Major Technology transformation Completed Loan Origination Loan Management ✓ Reimagined customer journeys ✓ Migrated to core banking based LMS platform ✓ Consolidation of processes into a single platform ✓ Seamless integrations across loan journey ✓ Multiple Fintech integrations for data enrichment
Slide 12: Technology Transformation Outcomes
Technology Transformation Outcomes Login to Sanction TAT (Days) Online Disbursal Transfers Outcomes ▪ Scalable enterprise architecture to support 10X+ scale 70% -36% with > 99% business uptime 11 50% 53% 10 ▪ Bank level systems with robust regulatory compliances 7 ▪ Automations and integrations in b
Slide 13: Strong Credit Ratings
Strong Credit Ratings Long-Term Credit Rating Short-Term Credit Rating Reaffirmed ICRA CARE ICRA Dec-24 A1+ AA / AA / Dec-24 Dec-24 Stable Stable CARE Dec-24 A1+ A/ A+ / INDIA RATINGS Mar-16 Mar-17 Stable Stable Dec-24 A1+ 12
Slide 14: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 31st Dec 2024 31st Dec 2024 Investor Details % Holding Kedaara Capital^ 16.02 Partners Group^ 10.87 SBI Asset Management* 8.59 Stewart Investors^ 6.98 Others, 12.8% Kedaara Capital, Blackrock Asset Manageme
Slide 15: Financial Performance
Financial Performance Key Business Parameters Geographical Distribution Spreads and Margins Asset Quality Liability Franchise Key Ratios
Slide 16: Performance Highlights
Performance Highlights AUM (₹ Mn) Disbursement (₹ Mn) Gross Stage 3 (%) +20% +11% +5 bps 192,380 40,992 1.09% 1.14% 160,795 36,891 Dec-23 Dec-24 9M FY24 9M FY25 Dec-23 Dec-24 PAT* (₹ Mn) NIM (%) ROA (%) +21% -40 bps +4 bps 7.94% 7.54% 4,203 3.26% 3,480 3.22% 9M FY24 9M FY25 9M FY24 9M FY25 9M FY24 9
Slide 17: Healthy Business Growth
Healthy Business Growth AUM (₹ Mn) Disbursements (₹ Mn) 173,126 55,822 +27% +18% 50,245 CAGR 141,667 CAGR 113,502 36,022 94,543 29,304 77,961 26,724 26,569 59,416 20,512 40,730 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 NIM (₹ Mn) PAT* (₹ Mn) +32% 4,908 +26%
Slide 18: Diversified Portfolio Mix
Diversified Portfolio Mix AuM by Product Aum by Occupation Average ticket size Average ticket size ₹ 0.81 mn 13% ₹ 0.83 mn 18% ₹ 0.94 mn ₹ 0.89 mn 17% 13% ₹ 0.71 mn ₹ 0.73 mn 60% 60% ₹ 1.02 mn 69% 69% ₹ 1.05 mn ₹ 0.95 mn ₹ 0.97 mn 40% 40% Dec-23 Dec-24 Dec-23 Dec-24 HL LAP MSME Salaried Self Employe
Slide 19: Disbursement break-up – Product category
Disbursement break-up – Product category 9M FY24 9M FY25 ATS : ₹ 0.79 Mn ATS : ₹ 0.88 Mn 18.6% 23.8% ATS ₹1.11 mn ATS 15.5% ₹1.18 mn ATS : ₹ 0.87 Mn 65.9% ATS : ₹ 0.89 Mn 11.4% 64.8% ATS : ₹ 1.34 Mn ATS : ₹ 1.42 Mn MSME Loans are mortgaged-backed and classified under Priority Sector Lending Home Loa
Slide 20: Well diversified geographical distribution
Well diversified geographical distribution State Branches Operations Commenced in Rajasthan 109 2012 Maharashtra 50 2012 14 Gujarat 45 2012 States/ UTs Madhya Pradesh 51 2013 Delhi 5 2013 Haryana & Punjab 23 2017 Chhattisgarh 9 2017 Uttar Pradesh 33 2018 Uttarakhand 9 2018 Himachal Pradesh 4 2020 37
Slide 21: Spreads Journey
Spreads Journey Yields, Cost of Borrowings and Spreads (%) Yields (%) COB (%) Spreads (%) Yields (%) COB (%) Spreads (%) 13.04% 13.12% 13.26% 13.15% 13.07% 13.13% 13.08% 13.04% 13.18% 14.72% 13.99% 13.75% 13.63% 13.16% 13.12% 13.13% 12.65% 8.07% 8.08% 8.15% 8.24% 9.51% 7.86% 7.95% 7.61% 7.66% 8.63%
Slide 22: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) FY23 7.67% 8.17% 8.23% 8.28% 3.17% 3.42% 3.43% 3.51% 3.56% 3.71% 3.75% 3.68% 3MFY23 H1FY23 9MFY23 FY23 3MFY23 H1FY23 9MFY23 FY23 3MFY23 H1FY23 9MFY23 FY23 FY24 8.00% 8.00% 7.94% 7.91% 3.16% 3.25% 3.22% 3.28% 3.79% 3.65% 3.63% 3.58% 3MFY24 H1FY24 9M
Slide 23: Pristine Asset Quality
Pristine Asset Quality Gross Stage 3 (%) Net Stage 3 (%) 1.13% 1.14% 0.87% 1.00% 1.04% 1.09% 1.01% 1.08% 0.73% 0.76% 0.79% 0.78% 0.81% 0.92% 0.94% 0.68% 0.67% 0.72% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 1+DPD (%)
Slide 24: Robust Liability Management
Robust Liability Management Diversified Funding Mix Loan Assets & Borrowings (₹ Mn) As on Dec-24 As on Dec-24 Successfully raised NCDs amounting to ₹ 6.3 Bn from IFC in the October’2024 9.0% at a competitive pricing. Floating Fixed Equity Terms Loans 15.9% 1,92,380 1,92,380 Assignment & Co-lending D
Slide 25: ALM Surplus
ALM Surplus Surplus Management* (₹ Mn) Average tenor of outstanding borrowing As on Dec-24 (months) 19,881 <3months 14,281 5,601 31,110 <6months 19,672 11,438 44,632 134 <1year 20,812 130 126 132 130 23,820 128 91,293 <3years 69,767 21,526 128,860 <5years 109,298 19,562 158,027 <7years 127,558 30,46
Slide 26: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Dec-24 Cash & Cash Equivalents 17,700 High-Quality Liquidity of Un-availed CC Limits 1,250 ₹ 18,950 Mn Documented & Un-availed Sanctions from NHB - Documented & Un-availed Sanctions from other Banks 22,750 Total Liquidity Position 41,700 Partic
Slide 27: Net Securitization Volume
Net Securitization Volume (₹ in Mn) ₹ 9,541 Mn ₹ 12,428 Mn ₹ 10,690 Mn 4,344 3,970 4,044 3,284 3,173 2,967 2,916 2,234 2,303 2,001 1,424 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 26
Slide 28: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (₹) 14.06% 13.59% 13.45% 530.3 458.9 398.4 9M FY23 9M FY24 9M FY25 Dec-22 Dec-23 Dec-24 Capital Adequacy Ratio (%) Earning Per Share* (₹) Tier I Tier II 53.0 49.22% 43.9 44.80% 45.45% 38.3 0.28% 0.21% 0.11% Dec-22 Dec-23 Dec-24 Dec-22 Dec-23 Dec-24 D
Slide 29: Annexures
Annexures Quarterly Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Net worth Reconciliation ESG
Slide 30: Profit & Loss Statement
Profit & Loss Statement Particulars (₹ Mn ) Q3 FY25 Q3 FY24 Y-o-Y Q2 FY25 Q-o-Q 9M FY25 9M FY24 Y-o-Y Interest Income on Loans (incl. Processing 5,188.0 4,351.6 19.2% 4,969.7 4.4% 14,991.2 12,703.4 18.0% Fee) Interest Income on Fixed Deposits 352.9 372.4 340.0 1,018.5 1,041.0 Upfronting Income on Fr
Slide 31: Balance Sheet
Balance Sheet Particulars (₹ Mn ) 31-Dec-24 31-Mar-24 Sources of Funds Share Capital 791 791 Reserves & Surplus 41,177 36,942 Borrowings 1,33,803 1,23,983 Deferred Tax Liability (Net) 690 602 Other Liabilities & Provisions 2,438 2,876 Total 1,78,900 1,65,195 Application of Funds Loan Assets 1,53,171
Slide 32: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) 9M FY25 9M FY24 Y-o-Y Q3 FY25 Q3 FY24 Y-o-Y Net Profit as per IGAAP 3,866.9 3,234.5 19.6% 1,309.6 1,060.2 23.5% Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial
Slide 33: ECL Provisions
ECL Provisions Particulars (₹ Mn ) Stage 1 Stage 2 Stage 3* Total For the period ended Dec'24 Gross Loan Principal Outstanding 1,50,047 2,372 1,757 1,54,176 % of Portfolio 97.32% 1.54% 1.14% 100% ECL Provision Amt. 225 256 524 1,005 ECL Provision % 0.15% 10.81% 29.80% 0.65% For the period ended Dec'
Slide 34: Net Worth Reconciliation
Net Worth Reconciliation Particulars (₹ Mn ) 30-Dec-24 31-Mar-24 Net Worth as per previous GAAP 38,477.9 34,650.8 Adjustments increasing/(decreasing) net worth as reported under previous GAAP: Adoption of EIR for amortisation of Income and expenses - financial assets at (221.9) (193.8) amortised cos
Slide 35: Environmental, Social & Governance
Environmental, Social & Governance Pillars for Sustainable Future Robust Corporate Governance The Board of Directors helps improve corporate credibility and Green Planet Nurturing Workplace governance standards and manage risk and independent oversight in the Company. Create a healthy planet by Crea
Slide 36: Environmental, Social & Governance
Environmental, Social & Governance Environmental Initiatives • Green Homes - The company has financed 220 homes certified by EDGE as Self-Built Green Homes and has two qualified EDGE auditors in its team. • Tree Plantation and Solar Drive – The Company has planted more than 11,000 + trees in Indore
Slide 37: Thank You !
Contact Us For further information, please contact : Aavas Financiers Limited CIN: L65922RJ2011PLC034297 (www.aavas.in) Mr. Rakesh Shinde, Head of Investor Relations Rakesh.shinde@aavas.in Thank You ! Investor Relations – Aavas Financiers investorrelations@aavas.in Strategic Growth Advisors Private