Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — FY2022 Earnings Presentation
36 slides from Aavas Financiers's earnings presentation, May 5, 2022
Slide 1: Exchange filing cover letter for investor presentation
A gvqs FINANCIERS LTD S A P N E AAPKE, S AATH H AM A AR A Ref. No. AAVAS/SEC/2022-23/199 Date: May 05, 2022 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 Stree
Slide 2: Investor Presentation - FY22
AAVAS FINANCIERS LIMITED Investor Presentation - FY22
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 y Experienced Board of Directors y Professional Management Team y In-house Execution Model y Technology and Data Analytics y Improving Credit Ratings y 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 • 20+ 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: Environmental, Social & Governance
Environmental, Social & Governance Pillars for Sustainable Future Key Quarterly Updates Green Planet Nurturing Workplace ■ Corporate Office in Jaipur certified LEED Silver Create a healthy planet by reducing Create a healthy & diverse workplace ■ 8462 online part disbursals of construction loans our
Slide 9: 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 Risk management Collections sourcing <U 13.4 10.6 13 1 10.0 E ■ Focused approach to directly ■ In-house und
Slide 10: 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 11: Improving Credit Ratings
Improving Credit Ratings Long-Term Credit Rating Short-Term Credit Rating Reaffirmed f \ CARE ICRA ICRA Mar-22 A1+ A A -/ A A -/ Mar-22 Mar-22 Positive Positive CARE Mar-22 A1+ A/ INDIA RATINGS Mar-17 A+ / Mar-16 h Stable Stable Mar-22 A1+ V________________________ > ^________________________ > 10
Slide 12: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 31st March 2022 31st March 2022 Investor Details % Holding Others, 4.69% Capital GroupA 8.17 Wasatch Global InvestorsA 7.36 g ic a 4.64 KEDAARA 3.72 Nomura Asset Management UTI Asset ManagementA* 3.69 Kotak
Slide 13: Size of Opportunity
Size of Opportunity Indian Housing Finance Housing Market (^ Trn) Market Size ^ 24.0 Trn (as on Dec-21) 24.0 20.7 22.5 YoY Growth +8% (as on Dec-21) Banks - 7%, HFCs & NBFCs -11% Market Share Banks -67% HFCs & NBFCs -33% (as on Dec-21) Mortgage Penetration (%) Credit Growth Affordable HFCs Affordabl
Slide 14: Measures from Government and Regulator
Measures from Government and Regulator Surprise Hike in Policy Rate RBI's MPC voted to maintain repo rate @ 4% even in the April meeting. But in an off-cycle meet on 04th May 2022, RBI's MPC unanimously voted to hike repo rate by 40bps citing acute inflationary pressures. MPC also decided to Resolut
Slide 15: Financial Performance
Financial Performance y/ Key Business Parameters Y Geographical Distribution Y Spreads and Margins ^ Asset Quality y Liability Franchise */ Key Ratios
Slide 16: Performance Highlights
Performance Highlights AUM (K Mn) Disbursement (K Mn) Gross Stage 3 (%) 94,543 26,569 Mar-21 Mar-22 FY21 FY22 PAT* (K Mn) NIM (%) ROA (%) like-for-like growth Average AmountAper Disbursed is + 28. 8 % , refer to Loan Account in FY22 slide # 30 for details ^ 0.99 Mn 3,575 2,903 FY21 FY22 FY21 FY22 FY
Slide 17: Healthy Business Growth
Healthy Business Growth AUM (^ Mn) Disbursements (^ Mn) PAT* (^ Mn) Data as per Ind-AS * PAT includes Other Comprehensive Income 16
Slide 18: AUM Break-up
AUM Break-up Agvqs Product Category Occupation Category Customer Category ATS : ^ 0.85 Mn ATS : ^ 0.68 Mn ATS : ^ 0.87 Mn 0.2% ATS : ^ 7.16 Mn 31-Mar-21 ATS : ^ 0.93 Mn ATS : ^ 0.84 Mn ATS : ^ 0.71 Mn ATS : ^ 0.89 Mn ATS : ^ 0.86 Mn 0.1% ATS : ^ 7.00 Mn 31-Mar-22 ATS : ^ 0.94 Mn ATS : ^ 0.84 Mn Reta
Slide 19: Disbursement Break-up - Product Category
Disbursement Break-up - Product Category FY21 FY22 ATS : ^ 0.83 Mn ATS : ^ 0.71 Mn ATS : ^ 1.09 Mn ATS : ^ 1.08 Mn Disbursement include 8.7% of mortgaged-backed MSME Loans Disbursement include 11.5% of mortgage-backed MSME Loans classified under Other Mortgage Loans classified under Other Mortgage L
Slide 20: Geographical Distribution
Geographical Distribution State Branches Operations Commenced in Rajasthan 99 2012 Maharashtra 45 2012 Gujarat 42 2012 Madhya Pradesh 45 2013 Delhi 6A 2013 Haryana & Punjab 18 2017 Chhattisgarh 8 2017 Uttar Pradesh 23 2018 Uttarakhand 9 2018 Himachal Pradesh 4 2020 Orissa 4 2021 Karnataka 11 2021 To
Slide 21: Yields, Cost of Borrowing and Spreads
Yields (%) • COB (%) Spreads (%) Yields (%) • COB (%) Spreads (%) 16.49% 13.62% 13.52% 13.42% 13.16% 12.99% 12.90% 12.79% 12.65% 10.48% 9.51% 8.10% 7.90% 7.68% 8.63% 8.74% 8.44% •------------- 7.40% 7.25% 7.17% 7.0 .03% 6.88% 7.40% Consistent Spreads 6.88% --------------- ^ 5.52% 5.62% 5.74% 5.76% 5
Slide 22: Margin and Cost Efficiency
Margin and Cost Efficiency Agvqs OpEx (%) NIM (%) ROA (%) 8 . 10% 8.69% 8 .66% 8.16% 4.03% 4.05% 3.75% 3.17% 3.38% 3.28% 3 42% 3.38% 3MFY20 H1FY20 9MFY20 FY20 3MFY20 H1FY20 9MFY20 FY20 3MFY20 H1FY20 9MFY20 FY20 6.15% 6.82% 7.42% 7.71% 2.89% 3.22% 3.49% 2.55% 2.62% 2.80% 2.82% 3 .01% 3MFY21 H1FY21 9M
Slide 23: Asset Quality
Asset Quality Gross Stage 3 (%) DPD upto 90 DPD above 90 DPD upto 90 DPD above 90 1.72% 1.33% 1+DPD (%) Segment-wise Gross Stage 3 (%) Mar-21 Mar-22 12.67% 1.11% 4.47% Mar-22 Home Loan Other Mortgage Loan Stage 3 Classification as per Ind-AS 22
Slide 24: Robust Liability Management
Robust Liability Management Diversified Funding Mix Loan Assets & Borrowings (^ Mn) As on Mar-22 As on Mar-22 30 Lenders ■ Terms Loans Floating Fixed Equity Diversified Mix ■ Assignment No exposure 113,502 113,502 to Commercial Papers ■ NHB Refinancing Incremental FY22 borrowings ■ NCDs ^ 43,884 Mn
Slide 25: ALM Surplus
ALM Surplus Surplus Management* Mn) Average tenor of outstanding borrowing (months) As on Mar-22 143 123 Mar-17 Assets Liabilities Surplus * Data as per Ind-AS 24
Slide 26: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (^ Mn) As on Mar-22 Cash & Cash Equivalents 15,690 High Quality Un-availed CC Limits 1,150 Liquidity of Documented & Un-availed Sanctions from NHB 4,060 ^ 20,900 Mn Documented & Un-availed Sanctions from other Banks 11,150 Total Liquidity Position 32,050 Pa
Slide 27: Net Securitization Volume
Net Securitization Volume ^ 6,802 Mn ^ 6,647 Mn ^ 5,496 Mn ^ 7,784 Mn 4 --------------------------------------------------------------------------------------------------- 4 -4--------------------------------------------------------------------------------------------- ► -4--------------------------
Slide 28: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (^) 12.66% 12.91% 13.72% Mar-20 Mar-21 Mar-22 FY20 FY21 FY22 Capital Adequacy Ratio (%) Earning Per Share* (^) Tier I Tier II 45.0 53.67% 36.6 53.17% 50.73% Mar-20 Mar-21 Mar-22 FY20 FY21 FY22 Data of Capital Adequacy Ratio is as per IGAAP for Mar-20
Slide 29: Annexures
Annexures Quarterly and Yearly Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Networth Reconciliation 28
Slide 30: Quarterly Profit & Loss Statement
Quarterly Profit & Loss Statement Particulars (^ Mn ) Q4 FY22 Q4 FY21 1__ Y-o-Y 1 Q3 FY22 Q-o-Q Interest Income on Loans (incl. Processing Fee) 3,097.3 2,488.1 24.5% 2,858.3 8.4% Interest Income on Fixed Deposits 174.3 180.9 180.0 Reversal Income on Earlier Assigned Loans (231.0) (199.1) (208.6) Upf
Slide 31: Yearly Profit & Loss Statement
Yearly Profit & Loss Statement Particulars (^ Mn ) FY22 FY21 Y-o-Y Interest Income on Loans (incl. Processing Fee) 11,450.2 9,670.0 18.4% Interest Income on Fixed Deposits 640.7 770.0 Reversal Income on Earlier Assigned Loans (803.3) (676.1) Upfronting Income on Fresh Assigned Loans 1,240.4 863.6 No
Slide 32: Balance Sheet
Balance Sheet Particulars Mn ) 31-Mar-22 31-Mar-21 Sources of Funds Share Capital 789.4 785.0 Reserves & Surplus 27,297.1 23,229.0 Borrowings 79,725.0 63,454.2 Deferred Tax Liability (Net) 353.6 285.2 Other Liabilities & Provisions 2,038.9 1,847.0 Total 110,203.8 89,600.5 Application of Funds Loan A
Slide 33: PAT Reconciliation
PAT Reconciliation Particulars (^ Mn ) FY22 FY21 | _ Y-o-Y_ | Q4 FY22 Q4 FY21 | Y-o-Y Net Profit as per IGAAP 3,282.3 3,077.8 6.6%* 947.9 1,079.3 -12.2%* * During FY21, there was a tax benefit on share-based Add / (Less): Adjustments as per IndAS on account of: payment of ^ 299.1 Mn Adoption of effe
Slide 34: ECL Provisions
ECL Provisions Particulars (^ M n) 31-Mar-22 31-Dec-21 31-Mar-21 Gross Stage 1 87,571.0 80,721.0 72,780.1 During the financial year, resolution plan was implemented fo r % portfolio in Stage 1 96.04% 94.34% 96.11% certain borrower accounts as per RBI's Resolution Framework ECL Provision Stage 1 216.
Slide 35: Networth Reconciliation
Networth Reconciliation Particulars (^ Mn ) 31-Mar-22 31-Mar-21 Net worth as per previous GAAP 26,133.3 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 (410.1) (408.8) amortised cost
Slide 36: Contact Us
Contact Us Aavas Financiers Limited (Formerly known as Au HOUSING FINANCE LIMITED) CIN:L65922RJ2011PLC034297 Mr. Himanshu Agrawal investorrelations@aavas.in www.aavas.in Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 www.sgapl.net 35