Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — Q1 FY25 Earnings Presentation
36 slides from Aavas Financiers's earnings presentation, Jul 25, 2024
Slide 1: Exchange filing cover letter for investor presentation
Ref. No. AAVAS/SEC/2024-25/459 Date: July 25, 2024 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 Symbol: AAVAS Scrip Code: 541988 Dear Sir/Madam, Sub:
Slide 2: Aavas Financiers Ltd. Investor Presentation – Q1 FY25
AAVAS FINANCIERS LTD. Investor Presentation – Q1 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 from Jaipur, Rajasthan – Regulated by Reserve Bank of India (“RBI”) Supervised by National Housing Bank (“NHB”) Stepped into 14th year of Operations Currently being run by professional management team backed by Recognized by NHB for refinance marquee priva
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 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 FY28E # of 25 35 42 44 94 165
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 • 25+ 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 1. Reduction in average login to sanction In-house execution model – Replicated across the states TAT (days) Turn around time is a key metric for customer centricity Lead generation and 13 Risk management Collections 10 11 sourcing 9 8 Superior Business Outcome Focused app
Slide 10: IT Transformation – Project GATI and UNNATI
IT Transformation – Project GATI and UNNATI (End to End digital journey from origination to servicing) Guiding Principles Key Objectives Transform loan origination & customer service processes leveraging Salesforce platform to achieve 10x scale 1 2 3 Enable seamless collaboration & information s
Slide 11: 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 12: Improving Credit Ratings
Improving Credit Ratings Long-Term Credit Rating Short-Term Credit Rating Reaffirmed ICRA CARE ICRA Jun-24 A1+ AA / AA / Jun-24 Jun-24 Stable Stable CARE Jun-24 A1+ A/ A+ / INDIA RATINGS Mar-16 Mar-17 Stable Stable Jun-24 A1+ 11
Slide 13: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 30th Jun 2024 30th Jun 2024 Investor Details % Holding Kedaara Capital^ 16.02 Partners Group^ 10.87 SBI Asset Management* 8.54 Stewart Investors^ 6.97 Others, 11.21% Kedaara Capital, Blackrock Asset Managem
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 (%) +22% 13% +1 bps 178,415 12,109 146,500 10,682 1.00% 1.01% Jun-23 Jun-24 Q1 FY24 Q1 FY25 Jun-23 Jun-24 PAT* (₹ Mn) NIM (%) ROA (%) Average Amount^ per Active Loan Account as on Jun-24 - 69 bps -15 bps +15% ₹ 0.93 Mn 1,261 8.00% 7
Slide 16: Healthy Business Growth
Healthy Business Growth AUM (₹ Mn) Disbursements (₹ Mn) PAT* (₹ Mn) +27% 173,126 55,822 +18% 50,245 +32% CAGR 141,667 CAGR CAGR 113,502 4,283 4,908 36,022 3,575 94,543 29,304 2,903 77,961 26,724 26,569 2,491 59,416 20,512 1,761 40,730 932 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 FY18 FY19 FY
Slide 17: AUM break-up
AUM break-up Product Category Occupation Category Average ticket size Average ticket size ₹ 0. 78 mn 10% 17% ₹ 0. 85 mn 20% ₹ 0. 93 mn ₹ 0. 96 mn 14% ₹ 0.72 mn ₹ 0.69 mn 60% 60% ₹ 0.97 mn 70% 69% ₹ 1.03 mn ₹ 0.87 mn ₹ 0.92 mn 40% 40% Jun-23 Jun-24 Jun-23 Jun-24 HL LAP MSME Salaried Self Employed Cus
Slide 18: Disbursement break-up – Product category
Disbursement break-up – Product category Q1 FY24 Q1 FY25 ATS : ₹ 0.88 Mn ATS : ₹ 0.83 Mn 22.1% 11.4% ATS : ₹ 0.83 Mn ATS : ₹ 0.65 Mn 22.0% 11.1% 66.8% 66.6% ATS : ₹ 1.26 Mn ATS : ₹ 1.35 Mn Disbursement include 11.1% of mortgaged-backed MSME Loans Disbursement include 22.0% of mortgage-backed MSME Lo
Slide 19: Well diversified geographical distribution
Well diversified geographical distribution Operations State Branches Commenced in Rajasthan 109 2012 Maharashtra 49 2012 13 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 20: Consistent Spreads
Consistent Spreads 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% 12.85% 14.72% 13.99% 13.75% 13.63% 13.16% 13.12% 13.13% 12.65% 9.51% 7.86% 7.95% 8.07% 8.08% 7.61% 7.66% 8.63% 8.74% 8.44% 7.29
Slide 21: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) FY23 8.17% 8.23% 8.28% 7.67% 3.43% 3.51% 3.42% 3.56% 3.71% 3.75% 3.68% 3.17% 3MFY23 H1FY23 9MFY23 FY23 3MFY23 H1FY23 9MFY23 FY23 3MFY23 H1FY23 9MFY23 FY23 FY24 8.00% 8.00% 7.94% 7.91% 3.25% 3.22% 3.28% 3.79% 3.65% 3.62% 3.58% 3.16% 3MFY24 H1FY24 9M
Slide 22: Pristine Asset Quality
Pristine Asset Quality Gross Stage 3 (%) Net Stage 3 (%) 1.13% 1.00% 1.04% 1.09% 0.92% 0.94% 1.01% 0.87% 0.76% 0.79% 0.73% 0.67% 0.72% 0.68% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 1+DPD (%) Segment-wise Gross Stage 3 (%) Jun-23 Jun-24 4.05%
Slide 23: Robust Liability Management
Robust Liability Management Diversified Funding Mix Loan Assets & Borrowings (₹ Mn) As on Jun-24 As on Jun-24 Diversified Mix : 35 Lenders Floating Fixed Equity 8.6% Terms Loans No exposure to Commercial Papers 19.6% Assignment 1,78,415 1,78,415 47.8% Incremental Borrowings – NHB Refinancing Q1 FY25
Slide 24: ALM Surplus
ALM Surplus Surplus Management* (₹ Mn) Average tenor of outstanding borrowing As on Jun-24 (months) 20,450 <3months 9,855 10,595 31,959 <6months 15,845 16,114 43,969 134 <1year 16,762 130 126 132 131 27,207 128 87,692 <3years 70,236 17,456 123,358 <5years 102,997 20,361 150,484 <7years 120,079 30,40
Slide 25: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Jun-24 Cash & Cash Equivalents 16,300 High-Quality Liquidity of Un-availed CC Limits 1,250 ₹ 17,550 Mn Documented & Un-availed Sanctions from NHB - Documented & Un-availed Sanctions from other Banks 12,600 Total Liquidity Position 30,150 Partic
Slide 26: Net Securitization Volume
Net Securitization Volume (₹ in Mn) ₹ 9,541 Mn ₹ 12,428 Mn ₹ 2,303 Mn 3,970 2,967 2,916 3,284 3,173 2,234 2,001 2,303 1,424 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1FY25 25
Slide 27: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (₹) 493.2 13.18% 13.14% 428.5 12.49% 367.9 Jun-22 Jun-23 Jun-24 3M FY23 3M FY24 3M FY25 Capital Adequacy Ratio (%) Earning Per Share* (₹) Tier I Tier II 15.9 49.80% 47.02% 13.9 44.24% 11.3 0.66% 0.30% 0.24% Jun-22 Jun-23 Jun-24 3MFY22 3MFY23 3MFY24 D
Slide 28: Annexures
Annexures Quarterly Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Networth Reconciliation ESG 27
Slide 29: Quarterly Profit & Loss Statement
Quarterly Profit & Loss Statement Particulars (₹ Mn ) Q1 FY25 Q1 FY24 Y-o-Y Q4 FY24 Q-o-Q Interest Income on Loans (incl. Processing Fee) 4,833.5 4,129.4 17.0% 4,598.2 5.1% Interest Income on Fixed Deposits 325.6 297.7 9.3% 372.9 -12.7% Reversal Income on Earlier Assigned Loans (361.6) (299.0) (384.
Slide 30: Balance Sheet
Balance Sheet Particulars (₹ Mn ) 30-Jun-24 31-Mar-24 Sources of Funds Share Capital 791 791 Reserves & Surplus 38,242 36,942 Borrowings 1,26,027 1,23,983 Deferred Tax Liability (Net) 578 602 Other Liabilities & Provisions 4,286 2,876 Total 1,69,924 1,65,195 Application of Funds Loan Assets 1,44,445
Slide 31: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) Q1 FY25 Q1 FY24 Y-o-Y Net Profit as per IGAAP 1,289.5 1,074.4 20.0% Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial assets at amortised cost / net (12.6) 9.7 in
Slide 32: ECL Provisions
ECL Provisions Particulars (₹ Mn ) Stage 1 Stage 2 Stage 3* Total For the period ended Jun'24 Gross Loan Principal Outstanding 1,41,601.1 2,285.4 1,466.1 1,45,352.7 % of Portfolio 97.42% 1.57% 1.01% 100.0% ECL Provision Amt. 324.6 160.2 422.7 907.50 ECL Provision % 0.23% 7.01% 28.83% 0.62% For the p
Slide 33: Net Worth Reconciliation
Net Worth Reconciliation Particulars (₹ Mn ) 30-Jun-24 31-Mar-24 Net Worth as per previous GAAP 35,953.4 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 (206.4) (193.8) amortised cos
Slide 34: 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 Create a healthy planet by Create a heal
Slide 35: Environmental, Social & Governance
Environmental, Social & Governance Environmental Initiatives • Green Home- The Company has financed 170 homes certified by EDGE as Self-Built Green Homes. Social Initiatives • Project ‘Gram Siddhi’- 1,18,800+ rural women from remote villages have been empowered through skill-based training by establ
Slide 36: 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