Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q4 FY18 Earnings Presentation
32 slides from Mas Financial Services's earnings presentation, May 9, 2018
Slide 1: Cover letter to stock exchanges
fibF HNANcTAL SERVTcES LrMrrED MFSL/SEC/EQ/2O!8/17 May 09, 2018 To, To, The Manager, General Manager BSE limited National Stock Exchange of India [imited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1., G Block Mumbai-400001 Bandra-Kurla Complex Bandra (East) Mumbai - 400051 Scri
Slide 2: Investor Presentation Q4 FY18
INVESTOR Corporate – PRESENTATION Presentation Q4 FY18 REGISTERED OFFICE MAS Financial Services Limited CIN: U65910GJ1995PLC026064 ADDRESS: 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of MAS Financial Services Limited (together with its subsidiary MAS Rural Housing & Mortgage Finance Limited). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation
Slide 4: Table of Content
Table of Content Company Overview 4 Mission, Vision and Belief 5 Milestones 6 Product Offerings 7 AUM & PAT 9 Key Performance Highlights – FY18 vs FY17 10 Key Performance Highlights – Q4 FY18 vs Q4 FY17 11 Financial Performance Trends – Q4 FY18 12 Retail Presence & Distribution Network 17 Credit Ass
Slide 5: Company Overview
Company Overview SPECAILISED IN RETAIL LENDING SINCE 20 YEARS Diversified Product Portfolio Strong Retail Presence & Wide Distribution Network 6 states and Sourcing Intermediaries 5,00,000 + NCT of Delhi Micro-Enterprise loans(MEL) SME loans Active loan accounts 397 328 3,311 Customer locations 112
Slide 6: Vision, Mission & Belief
Vision, Mission & Belief VISION To be one of the most efficient distributors of financial services and create value on a very large scale. MISSION To constantly endeavour, to attain excellence and create a very wide Financial distribution network and to be catalyst; in providing the most efficient f
Slide 7: Major events and milestones in the history
Major events and milestones in the history Listing of Equity Shares on Bombay Stock Exchange & National Stock Exchange. Capital Infusion of INR 350 Mn. by Motilal 2018 Oswal. Raised fresh Capital of INR 2,330 Mn. in IPO 2017 AUM crossed INR 30 Bn. Capital Infusion of INR 1,000 Mn. by Motilal Oswal.
Slide 8: Diversified product offerings presenting significant growth opportunities
Diversified product offerings presenting significant growth opportunities MAS focuses on serving the underserved credit needs of mid and low income group segments Micro-Enterprise Loans SME Loans Loans of up to INR 300,000 to Micro-Enterprises who Loans of up to INR 50 mn to SMEs who primarily i
Slide 9: Recent Growth in Overall AUM
Recent Growth in Overall AUM MAS’ has exhibited steady growth in AUM over the years AUM by Product Category (INR Mn) Segment growth YOY 1,462 Mar-17 vs Mar-18 3,624 Commercial Vehicle loans 19.80% 1,221 10,295 2,854 2-Wheeler loans 27.00% 1,439 2,576 7,638 4,290 SME loans 34.78% 25,763 Micro-Enterpr
Slide 10: Consistent Growth in AUM and PAT
Consistent Growth in AUM and PAT Asset Under Management (AUM) In INR Mn 41,145 31,561 25,650 20,052 13,910 10,123 5,118 6,909 2,682 3,884 1,510 2,312 2,597 20 Mar-1996 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Profit After Tax (PAT) 1,033 674 534 390
Slide 11: Key Achievements Highlights – FY18 vs FY17
Key Achievements Highlights – FY18 vs FY17 AUM PAT ROTA DER COB ICR FY18 INR 41,145 Mn INR 1,034 Mn 4.41% 2.50 times 8.67% 2.04 times 38% 8% 30% 53% 26% 21% FY17 INR 31,561 Mn INR 674 Mn 3.51% 4.01 times 9.44% 1.68 times ABBREVIATIONS AUM ASSET UNDER MANAGEMENT PAT PROFIT AFTER TAX ROTA RETURN ON AV
Slide 12: Key Achievements Highlights – Q4 FY18 vs Q4 FY17
Key Achievements Highlights – Q4 FY18 vs Q4 FY17 AUM PAT ROTA* DER COB* ICR Q4 FY18 INR 41,145 Mn INR 299 Mn 4.69% 2.50 times 8.40% 2.29 times 30% 101% 50% 38% 9% 39% Q4 FY17 INR 31,561 Mn INR 149 Mn 3.13% 4.01 times 9.24% 1.65 times ABBREVIATIONS AUM ASSET UNDER MANAGEMENT PAT PROFIT AFTER TAX ROTA
Slide 13: Financial Performance Trends – Q4 FY18
Financial Performance Trends – Q4 FY18 In INR Mn Robust Performance ASSETS UNDER MANAGEMENT (AUM) NET WORTH# 7,139 41,145 31,561 25,650 3,769 2,279 Mar-16 Mar-17 Mar-18 Mar-16 Mar-17 Mar-18 BORROWING ON & OFF BOOK AUM 17,848 14,855 15,129 37% 38% 39% 63% 62% 61% Mar-16 Mar-17 Mar-18 Mar-16 Mar-17 Ma
Slide 14: Financial Performance Trends – Q4 FY18
Financial Performance Trends – Q4 FY18 In INR Mn Consistent Rise in … REVENUE NET INTEREST INCOME (NII) 2,760 4,279 3,415 2,939 1,902 1,599 1,135 757 840 485 FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 PROFIT BEFORE TAX (PBT) PROFIT AFTER TAX (PAT) 1,034 1,581 1,031 674 817 5
Slide 15: Financial Performance Trends – Q4 FY18
Financial Performance Trends – Q4 FY18 Focus on Efficiency RETURN ON AVG. TOTAL ASSET (ROTA)* RETURN ON AVG. AUM (ROAUM)* 4.69% 4.41% 3.08% 3.51% 2.84% 3.24% 3.13% 2.34% 2.36% 2.02% FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 RETURN ON AVG. NET WORTH (RONW)* OPERATING EXPENSE
Slide 16: Financial Performance Trends – Q4 FY18
Financial Performance Trends – Q4 FY18 OPERATING EXPENSE AS % OF NII* COST OF BORROWING (COB)* 9.22% 9.44% 9.24% 34.38% 8.67% 8.40% 31.75% 32.85% 25.92% 22.88% FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 Efficiently maintaining the quality of assets GROSS NPA NET NPA 0.93% 0.
Slide 17: Financial Performance Trends – Q4 FY18
Financial Performance Trends – Q4 FY18 In INR Mn Adequately Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO (CAR) 6.52 31.29% 22.94% 4.01 18.36% 2.50 Mar-16 Mar-17 Mar-18 Mar-16 Mar-17 Mar-18 Healthy Coverage INTEREST COVERAGE RATIO (ICR) 2.29 2.04 1.61 1.68 1.65 FY-16 FY-17 FY-18 Q4 FY
Slide 18: Retail Presence and Distribution
Retail Presence and Distribution MAS have 77 branches across 6 states and NCT of Delhi 500,000+ active customers across 3,311 locations in Rural, semi urban and urban locations Rajasthan Delhi NCT • Branch – 1 • Branches – 7 branches covering major towns Gujarat • Branches – 37 Branches across the s
Slide 19: Diverse base of channel partners along with regional NBFCs provide wide distribution
Diverse base of channel partners along with regional NBFCs provide wide distribution Penetrate existing markets, enter newer markets, maintain optimal growth, profitability & quality Direct Distribution Network and Partnerships with Financial Relationships Institutions Presence in the high growth ma
Slide 20: Robust and Comprehensive Credit Assessment and Risk Management Framework
Robust and Comprehensive Credit Assessment and Risk Management Framework MAS aims to give credit where it is due with the dictum of adherence and adaptability Robust credit assessment Credit assessment process overview by Product Micro-Enterprise Loans Analysis of business potential and end use, c
Slide 21: Quality of the portfolio: Consistently maintained
Quality of the portfolio : Consistently maintained Catalyst in growth of Entrepreneurs, not creating just borrowers NPA COMPARISON CHART* 1.50% 1.25% 1.09% 1.15% 1.08% 1.00% 0.75% 0.93% 0.95% 0.91% 0.50% 0.25% 0.00% Mar-16 Mar-17 Mar-18 GROSS NPA NET NPA *NPA classification criteria For FY15 : >5 mo
Slide 22: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 0.68% 0.86% 0.25% 0.49% 0.48% 0.58% 1.14% 0.74% 0.91% 4.00% 1.23% 1.68% 1.11% 2.00% 2.79% 2.86% 2.75% 0.00% Mar-16 Mar-17 Mar-18 1 – 30 DPD 31 – 60 DPD 61 – 90 DPD 91 –120 DPD > 120 DPD PARTICULARS MAR-16 MAR-17 Mar-18 >
Slide 23: Eminent Board of Directors
Eminent Board of Directors Extensive industry experience and deep domain knowledge of financial services sector Mr. Kamlesh Chimanlal Gandhi, aged 52 years, is the Founder, Chairman and Managing Director of MAS since inception. He visualized the opportunities in the retail financial services ver
Slide 24: Eminent Board of Directors
Eminent Board of Directors Extensive industry experience and deep domain knowledge of financial services sector He has been associated with the Company as a Director since November 1995 and as an independent Director since April 2014 He is a management graduate with two decades of experience in
Slide 25: Reputed Marquee FIIs and DIIs have invested in MAS
Reputed Marquee FIIs and DIIs have invested in MAS Shareholding as on 31st March 2018 Marquee Non Promoter Shareholders Foreign Individuals, Others ( WASATCH INTERNATIONAL OPPORTUNITIES FUND Portfolio 2.46% Including CREDIT SUISSE (SINGAPORE) LIMITED Investor, AIFs, Fis & 4.30% Banks), TIMF HOLDINGS
Slide 26: Going Forward
Going Forward……….. Asset Creation • To anchor to our belief that, growth with quality will enhance the shareholders value. • Anticipated growth for the next five years to be in the range of 20% - 30% and maintain healthy ROA and ROCE, which will be among the best in the industry. • We will continue
Slide 27: Financial Statement: FY16 – FY18
Financial Statement: FY16 –FY18 In INR Mn PROFIT & LOSS STATEMENT INR Mn FY 2016 FY 2017 FY 2018 Total Revenue 2939.06 3415.17 4,278.73 Expenses Finance Costs 1339.86 1513.15 1518.48 Operating Expense 549.87 603.94 715.45 Provisions and Loan Losses 232.82 267.36 464.26 Profit Before Tax 816.51 1030.
Slide 28: MAS Rural Housing & Mortgage Finance Limited (MRHMFL) – Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) – Subsidiary MAS is targeting affordable housing finance segment through its subsidiary • MAS Rural Housing & Mortgage Finance Limited (“MAS Housing” or MRHMFL) is a non-deposit taking , NHB registered, housing finance institution. It was incorpo
Slide 29: Financial Performance Trends – FY18 MRHMFL
Financial Performance Trends –FY18 MRHMFL In INR Mn ASSETS UNDER MANAGEMENT (AUM) NET WORTH 320 300 2,040 260 1,764 1,341 Mar-16 Mar-17 Mar-18 Mar-16 Mar-17 Mar-18 BORROWING GROSS NPA & NET NPA 1,678 0.41% 1,469 0.36% 0.34% 1,144 0.27% 0.18% 0.15% Mar-16 Mar-17 Mar-18 Mar-16 Mar-17 Mar-18 SLIDE: 28
Slide 30: Financial Performance Trends – FY18 MRHMFL
Financial Performance Trends –FY18 MRHMFL In INR Mn REVENUE NET INTEREST INCOME (NII) 273 118 233 103 157 74 72 33 61 26 FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 PROFIT BEFORE TAX PROFIT AFTER TAX 34 25 29 19 22 15 10 6 7 7 FY-16 FY-17 FY-18 Q4 FY17 Q4 FY18 FY-16 FY-17 FY-
Slide 31: Glossary
Glossary AUM Assets Under Management Bn Billion CCPS Compulsorily Convertible Preference Shares COB Cost of Borrowing CRAR Capital To Risk Assets Ratio DPD Days Past Due FIs Financial Institutions ICR Interest Coverage Ratio IPO Initial Public Offer MEL Micro Enterprise Loans Mn Million NBFC Non Ban
Slide 32: Best Wishes – Investor Contact
BEST WISHES INVESTOR CONTACT Name: Ankit Jain Designation: VP- Finance Contact No.: 079-30016682 Email ID: ankit_jain@mas.co.in
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