Aavas Financiers Ltd. · NSE:AAVAS
Aavas Financiers — H1 FY25 Earnings Presentation
36 slides from Aavas Financiers's earnings presentation, Nov 7, 2024
Slide 1: Stock exchange cover letter for investor presentation
Ref. No. AAVAS/SEC/2024-25/701 Date: November 07, 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,
Slide 2: Investor Presentation – H1 FY25
AAVAS FINANCIERS LTD. Investor Presentation – H1 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 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 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) 173.1 184.0 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 H1FY25 FY28E # of 25 35
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: In-house Execution Model
In-house Execution Model In-house execution model – Replicated across the states 1. Reduction in average login to sanction TAT (days) Lead generation and Risk management Collections sourcing Turn around time is a key metric for customer centricity ▪ New Lead Management ▪ In-house underwriting team f
Slide 10: 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 11: Major Technology transformation Completed
Major Technology transformation Completed Loan Origination Loan Management Outcomes ✓ Reimagined customer journeys ✓ Migrated to core banking based LMS platform ✓ Scalable enterprise architecture to support 10X+ scale with > ✓ Consolidation of processes into a single platform ✓ Seamless integrations
Slide 12: Improving Credit Ratings
Improving Credit Ratings Long-Term Credit Rating Short-Term Credit Rating Reaffirmed ICRA CARE ICRA Sept-24 A1+ AA / AA / Sept-24 Sept-24 Stable Stable CARE Sept-24 A1+ A/ A+ / INDIA RATINGS Mar-16 Mar-17 Stable Stable Sept-24 A1+ 11
Slide 13: Diversified Shareholding Base
Diversified Shareholding Base Shareholding Pattern as on Top Institutional Shareholders as on 30th Sept 2024 30th Sept 2024 Investor Details % Holding Kedaara Capital^ 16.02 Partners Group^ 10.87 SBI Asset Management* 8.66 Others, 10.68% Stewart Investors^ 7.36 Kedaara Capital, Blackrock Asset Manag
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 (%) +20% +8% +4 bps 183,956 25,046 1.08% 23,267 1.04% 153,195 Sep-23 Sep-24 H1 FY24 H1 FY25 Sep-23 Sep-24 PAT* (₹ Mn) NIM (%) ROA (%) Average Amount^ per Active Loan Account as on Sep-24 -39 bps +3 bps +18% ₹ 0.94 Mn 8.00% 7.61% 2,7
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 ₹ 0.79 mn 12% 18% ₹ 0.82 mn 18% ₹ 0.88 mn ₹ 0.93 mn 13% ₹ 0.72 mn ₹ 0.72 mn 60% 60% ₹ 0.99 mn 70% 69% ₹ 1.04 mn ₹ 0.94 mn ₹ 0.97 mn 40% 40% Sep-23 Sep-24 Sep-23 Sep-24 HL LAP MSME Salaried Self Employed Custome
Slide 18: Disbursement break-up – Product category
Disbursement break-up – Product category H1 FY24 H1 FY25 ATS : ₹ 0.87 Mn ATS : ₹ 0.81 Mn 10.5% 11.4% ATS : ₹ 0.86 Mn 22.6% ATS : ₹ 0.80 Mn 23.0% 66.9% 65.6% ATS : ₹ 1.31 Mn ATS : ₹ 1.38 Mn MSME Loans are mortgaged-backed and classified under Priority Sector Lending Home Loan MSME (secured by mortgag
Slide 19: Well diversified geographical distribution
Well diversified geographical distribution State Branches Operations Commenced in Rajasthan 109 2012 Maharashtra 49 2012 14 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 (%) 13.26% 13.15% 13.07% 13.13% 13.08% 13.04% 12.85% 13.04% 13.12% 14.72% 13.99% 13.75% 13.63% 13.16% 13.12% 13.13% 12.65% 9.51% 7.95% 8.07% 8.08% 8.15% 7.61% 7.66% 7.86% 8.63% 8.7
Slide 21: Margin and Cost Efficiency
Margin and Cost Efficiency OpEx (%) NIM (%) ROA (%) FY23 7.67% 8.17% 8.23% 8.28% 3.17% 3.42% 3.43% 3.51% 3.56% 3.71% 3.75% 3.68% 3MFY23 H1FY23 9MFY23 FY23 3MFY23 H1FY23 9MFY23 FY23 3MFY23 H1FY23 9MFY23 FY23 FY24 8.00% 8.00% 7.94% 7.91% 3.16% 3.25% 3.22% 3.28% 3.79% 3.65% 3.62% 3.58% 3MFY24 H1FY24 9M
Slide 22: Pristine Asset Quality
Pristine Asset Quality Gross Stage 3 (%) Net Stage 3 (%) 1.13% 0.87% 1.00% 1.04% 1.09% 1.01% 1.08% 0.73% 0.76% 0.79% 0.78% 0.92% 0.94% 0.68% 0.67% 0.72% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 1+DPD (%) Segment-wise Gross Stage
Slide 23: Robust Liability Management
Robust Liability Management Diversified Funding Mix Loan Assets & Borrowings (₹ Mn) As on Sept-24 As on Sept-24 Successfully raised NCDs amounting to ₹ 6.3 Bn from IFC in the October’2024 6.0% at a competitive pricing. Floating Fixed Equity Terms Loans 18.1% Diversified Mix : 33 Lenders 1,83,956 1,8
Slide 24: ALM Surplus
ALM Surplus Surplus Management* (₹ Mn) Average tenor of outstanding borrowing As on Sep-24 (months) 17,268 <3months 11,596 5,672 27,935 <6months 16,433 11,502 40,436 134 <1year 16,955 130 126 132 133 23,481 128 85,310 <3years 68,394 16,917 121,541 <5years 100,958 20,582 149,276 <7years 118,179 31,09
Slide 25: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (₹ Mn) As on Sept-24 Cash & Cash Equivalents 13,870 High-Quality Liquidity of Un-availed CC Limits 1,250 ₹ 15,120 Mn Documented & Un-availed Sanctions from NHB - Documented & Un-availed Sanctions from other Banks 4,650 Total Liquidity Position 19,770 Partic
Slide 26: Net Securitization Volume
Net Securitization Volume (₹ in Mn) ₹ 9,541 Mn ₹ 12,428 Mn ₹ 6,647 Mn 4,344 3,970 3,284 3,173 2,967 2,916 2,234 2,303 2,001 1,424 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1FY25 Q2FY25 25
Slide 27: Key Financial Ratios
Key Financial Ratios ROE (%) Book Value Per Share (₹) 14.01% 13.44% 13.64% 511.5 444.1 383.6 H1 FY23 H1 FY24 H1 FY25 Sep-22 Sep-23 Sep-24 Capital Adequacy Ratio (%) Earning Per Share* (₹) Tier I Tier II 34.6 49.73% 47.95% 46.24% 29.2 24.8 0.63% 0.21% 0.24% Sep-22 Sep-23 Sep-24 Sep-22 Sep-23 Sep-24 D
Slide 28: Annexures
Annexures Quarterly Profit & Loss Statement Balance Sheet PAT Reconciliation ECL Provisioning Net worth Reconciliation ESG 27
Slide 29: Profit & Loss Statement
Profit & Loss Statement Particulars (₹ Mn ) Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y Interest Income on Loans (incl. Processing Fee) 4,969.7 4,222.4 17.7% 4,833.5 2.8% 9,803.5 8,351.8 17.4% Interest Income on Fixed Deposits 340.0 370.8 - 325.6 - 665.6 668.6 - Reversal Income on Earl
Slide 30: Balance Sheet
Balance Sheet Particulars (₹ Mn ) 30-Sep-24 31-Mar-24 Sources of Funds Share Capital 791 791 Reserves & Surplus 39,692 36,942 Borrowings 1,24,794 1,23,983 Deferred Tax Liability (Net) 633 602 Other Liabilities & Provisions 2,941 2,876 Total 1,68,851 1,65,195 Application of Funds Loan Assets 1,47,146
Slide 31: PAT Reconciliation
PAT Reconciliation Particulars (₹ Mn ) H1 FY25 H1 FY24 Y-o-Y Q2 FY25 Q2 FY24 Y-o-Y Net Profit as per IGAAP 2,557.8 2,174.3 17.6% 1,267.9 1,099.9 15.3% Add / (Less) : Adjustments as per IndAS on account of: Adoption of effective interest rate (EIR) for amortisation of Income and expenses - financial
Slide 32: ECL Provisions
ECL Provisions Particulars (₹ Mn ) Stage 1 Stage 2 Stage 3* Total For the period ended Sep'24 Gross Loan Principal Outstanding 1,44,073 2,418 1,601 1,48,092 % of Portfolio 97.29% 1.63% 1.08% 100.00% ECL Provision Amt. 324 163 459 946 ECL Provision % 0.22% 6.73% 28.70% 0.64% For the period ended Sep'
Slide 33: Net Worth Reconciliation
Net Worth Reconciliation Particulars (₹ Mn ) 30-Sep-24 31-Mar-24 Net Worth as per previous GAAP 37,213.6 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 (211.9) (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 180 homes certified by EDGE as Self-Built Green Homes & has 3 qualified EDGE auditors in its team. • Tree Plantation & Paper Saving Drive – On the occasion of World Nature Conservation day, 1700 trees
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