Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — Q1 FY23 Earnings Presentation
36 slides from Aptus Value Housing Finance India's earnings presentation, Aug 5, 2022
Slide 1: Cover letter to stock exchanges
Ref No: APTUS/06-AUG/2022-23 August 05, 2022 To, To, BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalai Street, Bandra Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai – 400 051 Scrip Code: 543335 Scrip Symbol: APTUS Dear Sir/Madam, Sub
Slide 2: Investor Presentation | Q1 FY23
Aptus Value Housing Finance India Limited Investor Presentation | Q1 FY23 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
Background Commenced Operations in 2010 from Chennai, Tamilnadu Regulated by RBI and supervised by NHB Run by professional management team backed by Presence in 211 locations strong Founder Promoter and marquee investors 3 Q1 FY 23 Investor Presentation
Slide 5: Key Strengths
Key Strengths 1 Leader in Attractive South Market 2 Good Asset Quality 3 Industry Leading Profitability 4 Presence in Large Underpenetrated Market 5 Good Governance, Management and Alignment 4 Q1 FY 23 Investor Presentation
Slide 6: Snapshot - June 2022
Snapshot - June 2022 Assets under Management (AUM) Disbursement Gross Stage 3 (*) Rs. 5519 Cr Rs. 525 Cr 1.75 % +30% +7% +113% +1% +70 bps +56 bps Spread Opex to Assets Profit After Tax 9.17 % 2.44 % Rs. 119 Cr +14 bps +2 bps -34 bps -9 bps +62 % +8 % Return on Assets Return on Equity YoY QoQ 8.88 %
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 Top up NBFC loans 4% Small business loans (SBL) Insurance 100% loans 4% LIG Customers 76% Quasi Home Loans Home Self Employed Borrowers 71% 23% Loans 69% AUM - Rs. 4819 Cr AUM -
Slide 8: 100% In-House Operations
100% In-House Operations Fully In-House Team… …Leading to Desired Business Outcomes Pricing Power 1,422+ 244+ Central Reduced TAT Business origination Credit Low Takeover 213+ 395+ Legal & technical Collection Reduced Risk of Frauds 7 Q1 FY 23 Investor Presentation
Slide 9: Robust Underwriting, Monitoring and Collections Process
Robust Underwriting, Monitoring and Collections Process 100% In-House Leveraging Stringent Credit Robust Collection Sourcing Technology Underwriting Management System Lead Generation Cash flow 15-24 months Digital Onboarding through assessment Monitoring early and KYC • Ref app, Cust app 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: Scalable and Robust digital landscape
Scalable and Robust digital landscape Mobile App for customer on-boarding, Time Series Forecast Using Credit Verification, Technical Valuation, Statistical Model and Tensor Flow for Collections & Customer Service Bounce Prediction. Easy ,Quick & Transparent process right Machine Learning Model
Slide 12: Risk & Data science backed Centralized underwriting
Risk & Data science backed Centralized underwriting Risk Management Tech - Intervention Centralized Processing • 25 + data points are • More than 100 data • Consistency in collected for Customer points captured for underwriting with Profile Analysis evaluation of every expertise in state-wise • Stag
Slide 13: Digital Adoption
Digital Adoption Service requests raised on app Unique Users Making payments Via Apps 2188 2025 30014 27533 20343 1026 644 2929 111 Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY 2021- Q3 FY 2021- Q4 FY 2021- Q1 FY 2022- 01 2022 2022 2022 2023 2021-2022 2021-2022 2021-2022 2021-2022 2022-2023 03 No of Payments
Slide 14: Scalability
Scalability Branch Productivity as on June 30, 2022 AUM per Branch (Rs. Cr) # of Branches Tamil Andhra Telangana Karnataka 18 44 149 Nadu Pradesh Per Capita GDP Compared to national 1.8x 1.1x 1.5x 1.5x 32.5 average of INR 157k GDP Growth 13% 8% 7% India average: 4% 9% 14.1 3.0 <1 Year Old 1-3Year Ol
Slide 15: Scalable Operating Model
Scalable Operating Model Company CAGR - 30% Listed Equity from Marquee Investors (*) (5 Years) Customers over 50000 5519 5183 4067 3183 100th Branch Expansion 4 States 2247 Became Profitable AUM Rs.100 Cr Westbridge First PEEquity Incorporation 1414 846 519 358 159 252 0 29 86 2010 2011 2012 2013 20
Slide 16: Resilient Model Across Economic Cycles
Resilient Model Across Economic Cycles GST NBFC Liquidity Covid-19 (first Covid-19 (Second Geo Political Implementation Crisis wave) wave) Climate FY 18 FY 20 FY 21 FY 22 Q1 FY 23 (*) AUM growth 66% 41% 28% 27% 24% Yield 17% 18% 17% 17% 17% GNPA 0.5% 0.7% 0.7% 1.19%(#) 1.75%(#) ROA 6.0% 7.8% 7.4% 8.
Slide 17: Strong ESG Focus
Strong ESG Focus Focus on financial Improving Living Strong Corporate inclusion Standards Governance 76% LIG Employment NIL in rural / semi-urban Material Civil litigation areas 71% Self-employed Support Diversified Experience 40% New to Credit to borrowers of Board Members across academic and profe
Slide 18: Performance Highlights (Quarterly)
Performance Highlights (Quarterly) AUM (Rs. Cr) Disbursement(Rs. Cr) Spread(%) 5519 525 519 9.15% 9.17% 8.89% 5183 454 4805 Q3 FY 22 Q4 FY 22 Q1 FY 23 Q3 FY 22 Q4 FY 22 Q1 FY 23 Q3 FY 22 Q4 FY 22 Q1 FY 23 Gross NPA(%) PAT (Rs. Cr) ROA (%) 8.88% 1.75% (*) 119 8.00% 1.53% (*) 7.82% 1.19% (*) 110 101 Q
Slide 19: Performance Highlights (Year on Year)
Performance Highlights (Year on Year) AUM (Rs. Cr) Disbursement (Rs. Cr) 5519 525 4254 30% 247 113% Jun 2021 Jun 2022 Q1 FY 22 Q1 FY 23 30% 18 (*) NPA as per RBI circular dated 12 Nov 2021 Q1 FY 23 Investor Presentation
Slide 20: Consistent NIMs
Consistent NIMs Yields/Cost of Borrowings (%) 17.30% 17.20% 17.03% 16.85% 16.99% 16.95% 16.89% 16.85% 16.89% 16.89% 9.80% 9.80% 8.43% 7.74% 7.96% 8.00% 7.74% 7.68% 7.86% 7.68% FY 1 9 FY 2 0 FY 2 1 FY 2 2 Q 1 FY 2 3 J UN 2 1 SEP 21 DE C 2 1 MAR 2 2 J UN 2 2 Spread (%) 9.15% 9.17% 8.60% 9.17% 9.15% 7.
Slide 21: Opex and ROA
Opex and ROA Opex (%) 3.80% 3.40% 2.78% 2.74% 2.78% 2.53% 2.44% 2.61% 2.53% 2.44% FY 19 FY 20 FY 21 FY 22 Q1 FY 23 Jun 2021 Sep 2021 Dec 2021 Mar 2022 June 2022 ROA (%) 8.88% 8.88% 8.00% 8.00% 7.62% 7.30% 7.43% 7.37% 7.01% 6.10% FY 19 FY 20 FY 21 FY 22 Q1 FY 23 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Ju
Slide 22: Asset Quality
Asset Quality Gross NPA (%) Net NPA (%) PCR = 53% 1.32% 1.75%(*) 1.16% 1.53%(*) 1.19% 0.84% 0.87% 1.07% 0.81% 0.60% Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 (*) NPA as per RBI circular dated 12 Nov 2021 Collection efficiency (%) 30 + DPD (%) 103.14% 1
Slide 23: Provision for Contingencies (ECL)
Provision for Contingencies (ECL) Rs. Lakhs Aptus Particulars Consolidated 30-Jun-22 31-Mar-22 30-Sep-21 31-Mar-21 Gross Stage 3 9654.17 6,183.67 3,623.42 2,717.11 % portfolio in Stage 3 1.75% 1.19% 0.81% 0.67% ECL Provision Stage 3 2,413.54 1,545.92 911.65 1,178.23 Net Stage 3 7,240.63 4,637.74 2,7
Slide 24: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix 20+ Lender Relationships No Exposure Others, 6% to Short term International Finance DFI loan incl CPs NHB Corporation NCDs, 14% Private Sector HDFC Bank Axis Bank Banks, 52% Federal Bank ICICI Bank NHB, 28% Public Sect
Slide 25: ALM Surplus
tor Presentation ALM Surplus Position as on 30 June 2022 (Rs.Cr) Surplus < 3 months 412 572 984 3-6 months 270 443 173 6m to 1 year 588 609 21 1 to 3 years 1441 2396 955 3 to 5 years 980 2364 1384 5 to 7 years 440 1927 1487 7 to 10 years 526 1792 1266 >10 years 322 613 291 Outflows Inflows 24 Q1 FY
Slide 26: Fixed Vs Floating (Assets Vs. Liabilities)
tor Presentation Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (₹ Cr) As on Jun-22 Borrowings - Fixed Vs. Floating 5519 5519 1076 1269 (21%) (23%) 61% 62% 60% 55% 1756 (34%) 45% 4250 40% 39% 38% (77%) 2687 (52%) Loan Assets Borrowings/Equity Sep-21 Dec-21 Mar-22 Jun-22 Equity F
Slide 27: Comfortable liquidity position/Capital Adequacy
tor Presentation Comfortable liquidity position/Capital Adequacy Rs. Crores A. Liquidity • Rs.1300 crores available for business upto Dec 2022 B. Capital Adequacy Capital Adequacy as on 30 June 2022 - 83.26% 26 Q1 FY 23 Investor Presentation
Slide 28: 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 • Contiguous expansion and increasing pe
Slide 29: 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 30: Stable Management Since Inception
Stable Management Since Inception M.Anandan Chairman & Managing Director 4 decades of experience in Financial Services Balaji P Subramaniam G ED & CFO ED - Chief of Business and Risk Several years of experience in finance, Several years of experience in lending treasury, banking, fund raising (finan
Slide 31: Diversified Shareholding
tor Presentation DiversifiedShareholding Shareholding Pattern as on 30 Jun 2022 Top Institutional Shareholders as on 30 Jun 2022 Others 5.71% Investor Details % of holding DII 2.83% Investor Promoter – Key Investors WestBridge 37.27% Malabar Group 8.48 Steadview Capital 3.24 Sequoia 3.21 Ward Ferry
Slide 32: Annexures
Annexures 31 Q1 FY 23 Investor Presentation
Slide 33: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs. Crores (*) – Based on Ind AS 32 Q1 FY 23 Investor Presentation
Slide 34: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs. Crores (*) – Based on Ind AS 33 Q1 FY 23 Investor Presentation
Slide 35: RoA Tree
RoA Tree Particulars Q1 FY 23 FY 22 Revenue from operations/Avg Loan book 17.71% 17.51% Other Income/Avg loan book 0.63% 0.67% Total Revenue/Avg loan book 18.34% 18.17% Finance cost/Avg loan book 4.06% 4.51% NIM/Avg loan book 14.28% 13.66% Operating expenses/Avg loan book 2.44% 2.53% ECL Provision/A
Slide 36: Thank You
Thank You 35 Q1 FY 23 Investor Presentation
Aptus Value Housing Finance India — Q1 FY23 Earnings Presentation on 6ix