Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — H1 FY22 Earnings Presentation
32 slides from Aptus Value Housing Finance India's earnings presentation, Oct 29, 2021
Slide 1: Exchange filing cover letter
Date: October 29, 2021 To, To, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai- 400001 Bandra (E) Scrip Code: 543335 Mumbai – 400 051 Scrip Symbol: APTUS Dear Sir/Madam, Sub: Investor Presentation
Slide 2: Strictly Private & Confidential
Strictly Private & Confidential 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”) which have been prepared by Aptus Value Housing Finance India Limited (the “Company”) have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscri
Slide 4: Background
Back ground Commenced Operations in 2010 from Chennai, Tamilnadu Regulated by RBI and supervised by NHB Run by professional management team backed by Presence in 198 locations strong Founder Promoter and marquee investors 3
Slide 5: Key Strengths
Key Strengths 1 Leader in Attractive South Market 2 Superior Asset Quality 3 Industry Leading Profitability 4 Presence in Large Underpenetrated Market 5 Good Governance, Management and Alignment 4
Slide 6: Snapshot - September 2021
Snapshot - September 2021 Assets under Management (AUM) Disbursement Gross Stage 3 Rs.4482 Cr Rs.421 Cr 0.81% +28% +5% +25% +70% +14 bps -26 bps NIM Opex to Assets Profit After Tax 9.09% 2.74% Rs.85 Cr +120 bps +6 bps +4 bps -4 bps +30% +16% Return on Assets Return on Equity 7.43% 14.09% YoY Consist
Slide 7: Diversified Loan Portfolio With Niche Customer Focus
Diversified Loan Portfolio With Niche Customer Focus Secured Portfolio – Home Loans(HL)/Small Business Loans (SBL) HFC NBFC Small Insurance Top up Business loans(SBL) (100%) LIG Customers 73% loans (4%) loans (5%) LIG Quasi HL(65%) Self Employed Borrowers 72% HL(24%) Self Employed AUM – Rs.3,849 Cr
Slide 8: 100% In-House Operations
100% In-House Operations Fully In-House Team… …Leading to Desired Business Outcomes Pricing Power 1,185+ 210+ Central Reduced TAT Sales Credit Low Takeover 200+ 336 Legal & technical Collection Reduced Risk of Frauds 7
Slide 9: Robust Underwriting, Monitoring and Collections Process
Robust Underwriting, Monitoring and Collections Process Stringent Credit Robust Collection 100% In-House Sourcing Leveraging Technology Underwriting Management System Lead Generation Cash flow 15-24 months Digital Onboarding through assessment Monitoring early • Ref app, Cust app and KYC Pre & Post
Slide 10: Information & Technology: Key Enabler of Growth
Information & Technology : Key Enabler of Growth Lending Software Customer Relationship & Human Resources End-to-end software Service Human resources management solution system application Automated CRM and customer service requests 1 3 5 2 4 6 Customer Onboarding Business Intelligence & Sales app,
Slide 11: Scalability
Scalability Branch Productivity as on Sep 30, 2021 AUM per Branch (Rs. Cr) # of Branches Tamil Andhra Telangana Karnataka 22 58 118 Nadu Pradesh 31 Per Capita GDP Compared to national 1.8x 1.1x 1.5x 1.5x average of INR 157k GDP Growth 13% 8% 7% India average: 4% 9% 11 1.67 <1 Year Old 1–3 Year Old >
Slide 12: Company milestones
11 Incorporation Became 2021 Profitable AUM – Sep Rs.4482 Cr First PE Equity Scalable Operating Model (*) – WestBridge, Malabar Sequoia, Steadview AUM Rs.100 cr WestBridge Expansion - 4 states 100th Branch Equity from Marquee investors(*) Customers over 50000 Company listed
Slide 13: Resilient Model Across Economic Cycles
Resilient Model Across Economic Cycles GST NBFC Covid-19 (first Covid-19 Implementation Liquidity Crisis wave) (Second wave) FY18 FY20 FY21 H1 FY22 AUM growth (YoY) 66% 41% 28% 22%(*) Yield (1) 17% 18% 17% 17% GNPA 0.5% 0.7% 0.7% 0.81% ROA 6.0% 7.8% 7.4% 7.4%(*) (*) Annualised 12
Slide 14: Strong ESG Focus
Strong ESG Focus 3 Focus on financial Improving Living Strong Corporate inclusion Standards Governance 73% LIG Employment NIL in rural / semi-urban Material Civil litigation areas 72% Self-employed Support Diversified Experience 40% New to Credit to borrowers of Board Members across academic and pro
Slide 15: Performance Highlights (Quarterly)
Performance Highlights (Quarterly) Disbursement(Rs. Cr) NIM(%) AUM(Rs. Cr) Covid 2 impact ROA(%) Gross NPA(%) PAT(Rs. Cr) 14
Slide 16: Performance Highlights (Year on Year)
Performance Highlights (Year on Year) Disbursement(Rs. Cr) NIM(%) AUM(Rs. Cr) 27% 30% PAT(Rs. Cr) ROA(%) Gross NPA(%) 30% 15
Slide 17: Consistent NIMs
Consistent NIMs Yields/Cost of Borrowings (%) NIM (%) 16
Slide 18: Opex and ROA
Opex and ROA Opex (%) ROA (%) 17
Slide 19: Asset Quality
Asset Quality Collection efficiencies (%) 30 + DPD (%) Covid 2 impact Gross NPA (%) Net NPA (%) 18
Slide 20: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix Sources of funds mix (%) No Exposure 20+ Lender Relationships to Short term Others(*) loan incl CPs (5.22%) NHB International Finance DFI IFC,MF(15.91%) Corporation Private Sector Banks(49.49%) HDFC Bank Axis Bank Fede
Slide 21: ALM Surplus
ALM Surplus Position as on 30 Sep 2021 (Rs.Cr) Surplus 825 DFI 91 210 Private Sector 547 1100 1302 1689 Public Sector 481 20
Slide 22: Comfortable liquidity position
Comfortable liquidity position Rs. Crores DFI Private Sector • Going slow on additional borrowings • High cost loans being prepaid • Rs.823 crores available for business upto March 2022 21
Slide 23: Key Growth Strategies
Key Growth Strategies Continued • Ticket Size in INR 0.5 – 1.5mn range Focus on Existing • Large headroom in new to credit, retail segment Segment • Maintain different templates of customer profiles to increase business while managing risks Deeper Penetration in • Contiguous expansion and increasing
Slide 24: Experienced and Well Diversified Board
Experienced and Well Diversified Board CMD WestBridge Non-Executive Nominee Directors M. Anandan Sumir Chadha KP Balaraj Chairman & Managing Director Nominee Director - WestBridge Nominee Director - WestBridge Non-Executive Independent Directors S. Krishnamurthy K. M. Mohandass Krishnamurthy Vijayan
Slide 25: Stable Management Since Inception
Stable Management Since Inception M.Anandan Chairman & Managing Director 4 decades of of experience in Financial Services Balaji P Subramaniam G ED - Chief of Business and Risk ED & CFO Several years of experience in Several years of experience in leniding (financial products), risk finance, treasur
Slide 26: Diversified Shareholding
Diversified Shareholding Top Institutional Shareholders as on 30 Sep 2021 Shareholding Pattern as on 30 Sep 2021 Others (4.02%) DII(5.05%) Founder Promoter – M.Anandan (25.14%) FII(28.02%) Investor Promoter – WestBridge(37.37%) 25
Slide 27: Annexures
Annexures 26
Slide 28: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs. Crores (*) – Based on Ind AS 27
Slide 29: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs. Crores (*) – Based on Ind AS 28
Slide 30: Provision for Contingencies (ECL)
Provision for Contingencies (ECL) Rs. Lakhs During H1 FY 22, resolution plan has been implemented for certain borrower accounts as per RBI’s Restructuring Framework 2.0 dated 5 May 2021. This restructuring has been done for 1.56% of the AUM 29
Slide 31: RoA Tree
RoA Tree Particulars H1 FY 22 FY 21 FY 20 FY 19 Revenue from operations/Avg Loan book 17.72% 17.60%} 18.50%} 17.80% Other Income/Avg loan book 0.49% 0.50% 0.80% 0.70% Total Revenue/Avg loan book 18.21% 18.10%} 19.30%] 18.50% Finance cost/Avg loan book 5.18% 5.70% 6.80% 6.40% Spread/Avg loan book 13.
Slide 32: Thank You
Thank You 31
Aptus Value Housing Finance India — H1 FY22 Earnings Presentation on 6ix