Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — FY2021 Earnings Presentation
35 slides from Aavas Financiers's earnings presentation, Apr 29, 2021
Slide 1: Cover letter to stock exchanges
Agvqs FINANCIERS LTD SAPNE AAPKE, SAATH HA MA A R A Ref. No. AAVAS/SEC/2021-22/122 Date: April 29,2021 To, To, The National Stock Exchange of India Limited BSE Limited The Listing Department Dept, of Corporate Services Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalai Street, Fo
Slide 2: Investor Presentation – FY21
AAVAS FINANCIERS LIMITED Investor Presentation – FY21
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aavas Financiers Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securit
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 Experienced Board of Directors Professional Management Team In-house Execution Model Technology and Data Analytics Improving Credit Ratings Diversified Shareholding Base
Slide 6: Experienced Board of Directors
Experienced Board of Directors Sandeep Tandon Soumya Rajan Kalpana Iyer Chairman & Independent Director Independent Director Independent Director Qualifications: Bachelor’s in Electrical Qualifications: Bachelor’s in Mathematics & Qualifications: Chartered Accountant Engineering from University of S
Slide 7: Professional Management Team
Professional Management Team Sushil Kumar Agarwal - Managing Director & CEO Ghanshyam Rawat - Chief Financial Officer • 19+ years of experience in retail financial services • Experience in financial services & allied sectors • Prior associated with Kotak Mahindra Prime, ICICI Bank & Au Small • Prior
Slide 8: Superior Business Outcome: In-house Execution Model
In-house Execution Model 1. Reduction in average TAT (days) In-house execution model – Replicated across the states Turn around time is a key metric for employee incentives Lead generation and 21.1 Risk management Collections sourcing 13.4 13.1 Superior Business Outcome 10.6 ▪ Focused approach to di
Slide 9: Technology and Data Analytics
Technology and Data Analytics Lead Generation Underwriting Operations Collections ▪ Majority of the leads ▪ Platform integration ▪ E-disbursement & E- ▪ Route optimization for are logged in through with credit bureaus repayment facility at all collection personnel the sourcing app ▪ Quarterly scrub
Slide 10: Improving Credit Ratings
Improving Credit Ratings Long-Term Credit Rating Short-Term Credit Rating Reaffirmed CARE ICRA ICRA Mar-21 A1+ AA- / AA- / Mar-21 Mar-21 Stable Stable CARE Mar-21 A1+ A+ / A/ INDIA RATINGS Mar-17 Mar-16 Stable Stable Mar-21 A1+ 9
Slide 11: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 31st March 2021 31st March 2021 Investor Details % Holding Others, 3.17% Capital Group^ 7.55 Wasatch Global Advisors^ 4.61 Nomura Asset Management^ 4.02 Kedaara Capital, Kotak (Offshore) Asset Management^ 2
Slide 12: Size of Opportunity
Size of Opportunity Indian Housing Finance Housing Market (₹ Trn) Market Size ₹ 22.1 Trn (as on Dec-20) 21.1 22.1 19.1 YTD Growth +5% 12.3 14.2 16.6 10.4 (as on Dec-20 vs. Mar-20) Banks - 6%, HFCs & NBFCs - 3% Market Share Banks - 67% HFCs & NBFCs - 33% Mar-16 Mar-17 Mar-18 Mar-20 Dec-20 Mar-15 Mar-
Slide 13: Measures from Government and Regulator
Measures from Government and Regulator Continued Pause in Policy Rate RBI’s MPC voted unanimously to maintain status-quo (repo rate @ 4%) even in the February & April meetings and continued with its accommodative stance for as long as necessary to revive growth on a durable basis. Regulatory framewo
Slide 14: Financial Performance
Financial Performance Key Business Parameters Geographical Distribution Spreads and Margins Asset Quality Liability Franchise Key Ratios
Slide 15: Performance Highlights
Performance Highlights AUM (₹ Mn) Disbursement (₹ Mn) Gross Stage 3 (%) +21.3% -9.3% +52bps 94,543 77,961 29,304 26,569 0.98% Average Amount^ per Active Loan Account as on Mar-21 0.46% ₹ 0.85 Mn Mar-20 Mar-21 FY20 FY21 Mar-20 Mar-21 PAT* (₹ Mn) NIM (%) ROA (%) Average Amount^ per Disbursed +16.6% -4
Slide 16: Healthy Business Growth
Healthy Business Growth AUM (₹ Mn) Disbursements (₹ Mn) PAT* (₹ Mn) +32% +9% CAGR 94,543 CAGR +46% 2,903 CAGR 2,491 77,961 29,304 26,724 26,569 59,416 1,761 20,512 40,730 932 Mar-18 Mar-19 Mar-20 Mar-21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Data as per Ind-AS * PAT includes Other Comprehensive Inc
Slide 17: AUM Break-up
AUM Break-up Product Category Occupation Category Customer Category ATS : ₹ 0.84 Mn ATS : ₹ 0.67 Mn ATS : ₹ 0.87 Mn 26.5% 0.3% 35.0% ATS : ₹ 7.30 Mn 31-Mar-20 65.0% 99.7% 73.5% ATS : ₹ 0.92 Mn ATS : ₹ 0.82 Mn ATS : ₹ 0.68 Mn ATS : ₹ 0.87 Mn ATS : ₹ 0.85 Mn 26.5% 0.2% 39.6% ATS : ₹ 7.16 Mn 31-Mar-21
Slide 18: Disbursement Break-up – Product Category
Disbursement Break-up – Product Category FY20 FY21 ATS : ₹ 0.71 Mn ATS : ₹ 0.61 Mn 29.9% 26.8% 70.1% 73.2% ATS : ₹ 1.07 Mn ATS : ₹ 1.09 Mn Home Loan Other Mortgage Loan ATS : Average Amount (at the time of Sanction) per Disbursed Loan Account 17
Slide 19: Geographical Distribution
Geographical Distribution State Branches Operations Commenced in Rajasthan 95 2012 Maharashtra 44 2012 Gujarat 39 2012 Madhya Pradesh 40 2013 Delhi 6^ 2013 Haryana & Punjab 16 2017 Chhattisgarh 7 2017 Uttar Pradesh 20 2018 Uttarakhand 9 2018 Himachal Pradesh 4 2020 Total 280 Data as on 31st March 20
Slide 20: Consistent Spreads
Consistent Spreads Yields, Cost of Borrowings and Spreads (%) Yields (%) COB (%) Spreads (%) Yields (%) COB (%) Spreads (%) 18.13% 13.85% 13.78% 13.74% 13.63% 13.62% 13.52% 16.49% 13.42% 13.16% 15.12% 14.72% 13.99% 13.75% 13.63% 13.16% 12.28% 11.41% 10.48% 8.79% 8.75% 8.68% 8.44% 9.51% 8.10% 7.90% 7
Slide 21: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) 8.54% 8.80% 9.37% 9.32% 3.58% 3.06% 3.64% 4.17% 2.93% 4.00% 3.89% 3.81% 3MFY19 H1FY19 9MFY19 FY19 3MFY19 H1FY19 9MFY19 FY19 3MFY19 H1FY19 9MFY19 FY19 8.69% 8.66% 8.16% 4.03% 4.05% 3.75% 8.10% 3.17% 3.38% 3.28% 3.42% 3.38% 3MFY20 H1FY20 9MFY20 FY20
Slide 22: Asset Quality
Asset Quality Gross Stage 3 (%) Net Stage 3 (%) 1.00% 0.98% 0.72% 0.71% 0.49% 0.46% 0.62% 0.57% 0.46% 0.47% 0.34% 0.32% 0.32% 0.46% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 1+DPD (%) Segment-wise Gross Stage 3 (%) Mar-20 Mar-21 8.21% 6.20% 6.3
Slide 23: Robust Liability Franchise
Robust Liability Franchise Diversified Funding Mix Loan Assets & Borrowings (₹ Mn) As on Mar-21 As on Mar-21 30 Lenders Terms Loans Floating Fixed Equity Diversified Mix 19.0% 34.1% Assignment No exposure 94,543 94,543 to Commercial Papers 22.6% NHB Refinancing Incremental Q4 FY21 borrowings 24.2% N
Slide 24: ALM Surplus
ALM Surplus Surplus Management* (₹ Mn) Average tenor of outstanding borrowing (months) As on Mar-21 8,804 2,999 <3months 5,805 13,751 6,635 <6months 7,115 143 135 134 21,265 9,504 130 <1year 123 11,761 48,791 <3years 17,817 99 30,974 68,179 <5years 18,074 50,105 <7years 82,649 22,696 59,953 <10years
Slide 25: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Mar-21 Cash & Cash Equivalents 11,140 High Quality Un-availed CC Limits 1,320 Liquidity of Documented & Un-availed Sanctions from NHB 6,550 ₹ 19,010 Mn Documented & Un-availed Sanctions from other Banks 9,350 Total Liquidity Position 28,360 Par
Slide 26: Net Securitization Volume
Net Securitization Volume ₹ 5,385 Mn ₹ 6,802 Mn ₹ 6,647 Mn ₹ 5,496 Mn 2,992 2,816 2,579 2,281 2,397 2,077 1,574 1,590 1,509 995 1,029 991 1,000 500 0 0 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 25
Slide 27: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (₹) 12.66% 12.91% 11.64% 305.9 267.9 235.2 Mar-19 Mar-20 Mar-21 FY19 FY20 FY21 Capital Adequacy Ratio (%) Earning Per Share* (₹) Tier I Tier II 64.25% 36.6 31.5 53.67% 53.33% 23.1 3.52% 2.18% 1.21% Mar-19 Mar-20 Mar-21 FY19 FY20 FY21 Data of Capital
Slide 28: Annexures
Annexures Quarterly and Yearly Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Networth Reconciliation 27
Slide 29: Quarterly Profit & Loss Statement
Quarterly Profit & Loss Statement Particulars (₹ Mn ) Q4 FY21 Q4 FY20 Y-o-Y Q3 FY21 Q-o-Q Interest Income (incl. Processing Fee & FDR Interest) 2,469.8 2,147.9 15.0% 2,577.4 -4.2% Gain on derecognition of financial instruments under 273.8 89.2 405.3 amortized cost category Non-Interest Income 169.3
Slide 30: Yearly Profit & Loss Statement
Yearly Profit & Loss Statement Particulars (₹ Mn ) FY21 FY20 Y-o-Y Interest Income (incl. Processing Fee & FDR Interest) 9,763.9 7,864.3 24.2% Gain on derecognition of financial instruments under 863.6 765.9 amortized cost category Non-Interest Income 425.9 400.8 Interest Expense (incl. Finance Char
Slide 31: Balance Sheet
Balance Sheet Particulars (₹ Mn ) 31-Mar-21 31-Mar-20 Sources of Funds Share Capital 785.0 783.2 Reserves & Surplus 23,229.0 20,196.1 Borrowings 63,454.2 53,520.4 Deferred Tax Liability (Net) 285.2 317.0 Other Liabilities & Provisions 1,847.0 1,753.8 Total 89,600.5 76,570.5 Application of Funds Loan
Slide 32: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) FY21 FY20 Y-o-Y Q4 FY21 Q4 FY20 Y-o-Y Net Profit as per IGAAP 3,077.8 2,297.4 34.0% 1,079.3 683.2 58.0% Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial assets a
Slide 33: ECL Provisions
ECL Provisions Particulars (₹ Mn ) 31-Mar-21 31-Mar-20 Gross Stage 3 739.1 284.1 % portfolio in Stage 3 0.98% 0.46% ECL Provision Stage 3 201.4 73.9 Net Stage 3 537.8 210.2 Coverage Ratio % Stage 3 27.25% 26.02% Gross Stage 1 & 2 74,989.5 61,734.5 % portfolio in Stage 1 & 2 99.02% 99.54% ECL Provisi
Slide 34: Networth Reconciliation
Networth Reconciliation Particulars (₹ Mn ) 31-Mar-21 Net worth as per previous GAAP 22,470.8 Adjustments increasing/(decreasing) net worth as reported under previous GAAP: Adoption of EIR for amortisation of Income and expenses - financial assets at amortised cost / net (408.8) interest on credit i
Slide 35: Thank You !
Contact Us Aavas Financiers Limited (Formerly known as Au HOUSING FINANCE LIMITED) CIN: L65922RJ2011PLC034297 Mr. Himanshu Agrawal investorrelations@aavas.in www.aavas.in Thank You ! Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 www.sgapl.net 34