Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — Q1 FY24 Earnings Presentation
36 slides from Aptus Value Housing Finance India's earnings presentation, Aug 1, 2023
Slide 1: Stock exchange cover letter for investor presentation
Ref No: APTUS/03-AUG/2023-24 August 01, 2023 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:
Slide 2: Investor Presentation | Q1 FY24
Aptus Value Housing Finance India Limited Investor Presentation | Q1 FY24 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 - 14th successful year of operations Regulated by RBI and supervised by NHB Run by professional management team backed by Presence in 231 locations strong Founder Promoter and marquee investors 3
Slide 5: Key Strengths
Key Strengths 1 Presence in Large Underpenetrated Market 2 Leader in Attractive South Market 3 Good Asset Quality 4 Industry Leading Profitability 5 Good Governance, Management and Alignment 4
Slide 6: Management Update
Management Update Resilient Profitability with RoA at 8.21% and RoE at 16.93% 1 Lakh + Happy Customers Branch reach beyond South:- Commenced Operations in Odisha Tech focused, Data driven fully connected operations – Sourcing to Collections Strengthening of Middle Management in Business and Support
Slide 7: Journey – over the years
Journey – over the years AUM Rs. Crores CAGR - 32% 50K + Customers 1 Lakh + (5 Years) Customers (#) 7123 Listed 6738 Equity From Marquee 5180 Investors 4068 Expansion 100th Branch to Four AUM Rs.100 Cr States 3183 2247 1st PE Equity 1414 846 519 252 358 29 86 159 0 2010 2011 2012 2013 2014 2015 2016
Slide 8: Financial Snapshot – 5 Years
Financial Snapshot – 5 Years Rs in Crores FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 (Q1) CAGR No. of Branches 143 175 190 208 231 231 No. of Customers 30,749 43,987 58,069 83,565 1,07,146 1,12,741 Disbursements 1,089 1,271 1,298 1,641 2,395 646 AUM 2,247 3,179 4,068 5,180 6,738 7,123 32% Total Income 337
Slide 9: Snapshot - June 2023
Snapshot - June 2023 Assets under Management (AUM) Disbursement Gross Stage 3 Rs. 7,123 Cr Rs. 646 Cr 1.29 % +29% +6% +23% -3% -45 bps +14 bps Spread Opex to Assets Profit After Tax 13.29% 2.55 % Rs. 142 Cr Consistently maintained +11 bps -20 bps +20 % +5% Return on Assets Return on Equity YoY 8.21%
Slide 10: Diversified Income Stream With Niche Customer Focus
Diversified Income Stream With Niche Customer Focus Secured Portfolio – Home Loans (HL) / Small Business Loans (SBL) HFC NBFC Small Business Loan & Non-HL – 100% LIG Customers 78% Self Employed Borrowers 71% AUM – Rs 1261 Cr Rural Focus 75% Consolidated Avg Ticket Size < Rs.10 lacs >93% 9
Slide 11: 100% In-House Operations
100% In-House Operations Fully In-House Team… …Leading to Desired Business Outcomes Pricing Power 1,499 256 Business Origination Credit Reduced TAT 225 459 Low Takeover Legal & technical Collection Reduced Operational Risk 144 HO / Operations 10
Slide 12: Omni Channel Lead Generation
Omni Channel Lead Generation ✓Existing customers can refer leads ✓Unifying construction ECO System through customer service APP ✓Referral app to generate leads Existing Customer Construction Referrals ecosystem 5.02 % 6.25 % ✓Lead generation through social media Campaigns & Digital marketing ✓Our sa
Slide 13: 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 • Cust app,Ref app Pre & Post d
Slide 14: 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 15: Scalable and Robust Digital Landscape
Scalable and Robust Digital Landscape ✓Mobile App for customer on-boarding, Credit ✓ Time Series Forecast Using Verification, Technical Valuation, Collections & Statistical Model and Tensor Flow Customer Service ✓Easy ,Quick & Transparent process right from the for Bounce Prediction. field ✓ Machine
Slide 16: Risk and Data Science Backed Centralized Underwriting
Risk and Data Science Backed Centralized Underwriting Tech - Centralized Risk Management Intervention Processing ✓50 + key data ✓Tech enabled ✓Consistency in points are collected evaluation of underwriting with for Customer customers expertise in state- Loans approved Profile Analysis wise analysis
Slide 17: Scalability
Scalability Branch Productivity as on June 30, 2023 AUM per Branch (Rs. Cr) # of Branches Tamil Andhra Nadu Telangana Karnataka Pradesh 23 35 173 Per Capita GDP Compared to national 1.8x 1.1x 1.5x 1.5x average of INR 180k 36.94 GDP Growth 13% 8% 7% India average: 6.1% 9% % of AUM as on No. of 18.98
Slide 18: Strong ESG Focus
Strong ESG Focus Focus on financial Improving Living Strong Corporate inclusion Standards Governance NIL 78% LIG Material Civil litigation Employment Diversified Experience in rural / semi-urban areas of Board Members across academic and professional domains 71% Self-employed Business Responsibility
Slide 19: Performance Highlights
Performance Highlights Disbursement(Rs. Cr) AUM (Rs. Cr) Gross NPA(%) 668 7123 1.75% 646 6738 5519 1.29% 525 1.15% Q1 FY 23 Q4 FY 23 Q1 FY 24 Q1 FY 23 Q4 FY 23 Q1 FY 24 Q1 FY 23 Q4 FY 23 Q1 FY 24 Growth YoY 23% Growth YoY 29% PAT (Rs. Cr) ROA (%) ROE (%) 8.88% 16.93% 142 8.44% 8.21% 135 16.34% 15.89
Slide 20: Consistent Spreads
Consistent Spreads Yields / Cost of Borrowings (%) 17.20% 17.03% 16.89% 17.00% 17.15% 16.85% 16.90% 17.00% 17.15% 16.85% 9.80% 8.43% 8.10% 8.30% 8.10% 8.30% 7.74% 7.68% 7.70% 7.90% FY 20 FY 2 1 FY 2 2 FY 2 3 FY 2 4 Q 1 FY2 3 Q 2 FY2 3 Q 3 FY2 3 Q 4 FY2 3 Q 1 FY2 4 (Q 1 ) NIM (%) 9.15% 8.90% 8.85% 9.
Slide 21: Opex and ROA
Opex and ROA Opex (%) 2.77% 2.75% 2.75% 3.40% 2.44% 2.55% 2.78% 2.75% 2.53% 2.55% FY 20 FY 21 FY 22 FY 23 FY 24 (Q1) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 ROA (%) 8.88% 8.71% 8.53% 8.44% 8.21% 8.44% 8.00% 8.21% 7.37% 7.01% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 20 FY 20 FY 21 FY 22 FY 23 FY 24 (Q1)
Slide 22: Asset Quality
Asset Quality PCR – 82 % Gross NPA (%) Net NPA (%) 1.32% 1.75% 1.10% 1.08% 1.47% 1.44% 1.29% 0.97% 1.15% 0.86% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Non Cash Collections Collection efficiency (%) 30 + DPD (%) >95% 102.90% 101.17% 100.31% 100.21% 99.52% 6.48% 6.50% 6.2
Slide 23: Provision for Contingencies (ECL)
Provision for Contingencies (ECL) Rs in lakhs Consolidated 30-Jun-23 31-Mar-23 30-Jun-22 31-Mar-22 Gross Stage 3 9,224 7,767 9,654 6,184 % portfolio in Stage 3 1.29% 1.15% 1.75% 1.19% ECL Provision Stage 3 2,306 1,942 2,414 1,546 Net Stage 3 6,919 5,825 7,241 4,638 Provision coverage ratio (PCR) 25.
Slide 24: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile 20+ Lender Relationships Diversified and Balanced Funding Mix No Exposure to Short term loan incl CPs Sources of funds mix(%) Others, DFI NCDs, 9% 3% Refinance NHB, 28% Private Sector Banks, 60% Avg. Tenure of FY 24 (Q1) FY23 FY22 Borrowings (months) 84.2
Slide 25: ALM Surplus
ALM Surplus Position as on 30 Jun 2023 (Rs.Cr) Surplus < 3 months 432 956 524 3-6 months 452 748 296 6m to 1 year 721 306 1027 1 to 3 years 2518 377 2895 3 to 5 years 1404 2632 1228 5 to 7 years 595 1899 2494 519 7 to 10 years 2149 1630 >10 years 159 761 602 Outflows Inflows 24
Slide 26: Fixed Vs Floating (Assets Vs. Liabilities)
Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (₹ Cr) As on Jun-23 Borrowings - Fixed Vs. Floating 7123 7123 23.00% 24.57% 60% 61% 62% 58% 57% 59% 58% 33.93% 77.00% 40% 42% 43% 42% 39% 38% 41% 41.50% Loan Assets Borrowings/Equity Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
Slide 27: Comfortable liquidity position/Capital Adequacy
Comfortable liquidity position/Capital Adequacy A. Liquidity Rs in Crores Particulars 30-Jun-23 Unecumbered Cash & Cash equivalents 497 Unavailed Sanctions from Banks 400 Total 897 FY 24 FY 24 Particulars Q2 Q3 Opening Liquidity 897 1,034 * Rs.1188 Crores Surplus Add: Principal repayments & Surplus
Slide 28: Key Growth Strategies
Key Growth Strategies Continued Focus on • Ticket Size in INR 0.5 – 1.5mn range in HL and SME Existing Segment & • Large headroom in new to credit, retail segment strengthen focus on SME • Different templates of customer profiles to increase business while managing risks Deeper Penetration in Existi
Slide 29: Experienced and Well Diversified Board
Experienced and Well Diversified Board Chairman Non-Executive Nominee Directors Non-Executive Director M. Anandan Sumir Chadha KP Balaraj Shailesh J. Mehta Executive Chairman Nominee Director - WestBridge Nominee Director - WestBridge Partner, Granite Hill Capital Partners Non-Executive Independent
Slide 30: Stable Management
Stable Management Balaji P Managing Director Several years of experience in financial Services including HFC C.T. Manoharan John Vijayan Chief Business Officer Chief Financial Officer Rich experience in housing finance industry Experience in Financial Services in the across sales, channel and distri
Slide 31: Diversified Shareholding
Diversified Shareholding Shareholding Pattern Top Institutional Shareholders Public & Key Investors Founder Promoter – Others 6.82% M.Anandan 25.02% Investor Details % of holding Malabar Group 8.31 DII 2.72% Capital Research 3.39 Steadview Capital 3.18 Ward Ferry 3.08 Sequoia 2.61 Aberdeen 1.71 FII
Slide 32: Annexures
Annexures 31
Slide 33: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs in Crores FY 23 FY 24 FY 23 FY 23 Growth % Particulars Full Year Q1 Q1 Q4 Q1-o-Q1 1,058.40 Interest Income 296.81 233.00 290.61 27% 70.60 Fee and Other Income 18.06 15.76 17.78 15% (275.91) Interest Expenses (84.74) (54.26) (77.66) 56% 853.08 Spread 23
Slide 34: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs in Crores Mar-23 Particulars Jun-23 Jun-22 Source of Funds 99.61 Share capital 99.61 99.38 3,239.72 Reserves & surplus 3,282.03 2,935.63 3,339.33 Net worth 3,381.64 3,035.01 3,786.02 Borrowings 4,133.98 2,938.96 50.70 Other Liabilities & Provisi
Slide 35: RoA Tree
RoA Tree (%) FY 24 FY 23 Particulars Q1 Q1 Return on Assets (RoA)* Revenue from Operations 17.60% 17.71% Other Income 0.60% 0.63% Total Revenue 18.20% 18.34% Interest Expenses (4.91%) (4.06%) Spread 13.29% 14.28% ECL Provisions / Write-Off's (0.14%) (0.71%) Operating Expenses (2.55%) (2.44%) Profit
Slide 36: Thank You
Thank You 8B, Doshi Towers, 205, Poonamallee High Rd, Kilpauk, Chennai – 600010., Phone: 044-45650000, E-Mail: investorrelations@aptusindia.com, Website: www.aptusindia.com 35
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