Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q2 FY22 Earnings Presentation
41 slides from Mas Financial Services's earnings presentation, Oct 27, 2021
Slide 1: Investor Presentation Cover Letter to Stock Exchanges
4ffi{J\� FINANCIAL SERVICES LIMITED 'Ilie <Power ofDistribution October 27, 2021 MFSL/SEC/EQ/2021/70 To, To, General Manager The Manager, National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex Mumbai - 400
Slide 2: Investor Presentation – Q2 FY22
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Slide 3: Disclaimer
Disclaimer �- ENDEAVO�S 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
Slide 4: Table of Content
Table of Content � ENDEAVO�S 04 MAS AT A GLANCE 05 JOURNEY OF 104 QUARTERS 06 STRONG FUNDAMENTALS 07 NAVIGATING COVID 19 PANDEMIC 08 PRODUCT OFFERINGS 10 LIABILITY MANAGEMENT 11 GOING FORWARD 12 FINANCIAL REVIEW 19 CREDIT QUALITY 22 REPUTED MARQUEE INVESTORS 23 FINANCIAL STATEMENT FY19- H1 FY 2122 2
Slide 5: MAS at a Glance
MAS at a Glance �� ENDEAvo:Us 25 Years of Endeavours Strong Retail Presence & Distribution Network Delhi NCR 54,852 Mn. 6 100 Rajasthan • I 10 branches covering • 1 branch major towns AUM States and NCR Branches of Delhi Gujarat • 55 branches across the state Madhya Pradesh 3,496 6,00,000+ • 10 bran
Slide 6: Journey of 104 Quarters
Journey of 104 Quarters �� ENDEAvo:Us Asset Under Management (AUM) 59,663 53,384 53,724 41,570 31,561 25,650 20,052 13,910 10,123 3,884 5,118 6,909 1,510 2,312 2,597 2,682 20 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q 104Q Profit After Tax (PAT) 1,666 1,433 1,435 911 674 534 311
Slide 7: Strong Fundamentals
Strong Fundamentals �� ENDEAvo:Us Enablers for Navigating through current unprecedented challenges SUCCESSFUL TRACK STRONG PROVISION HIGHLY CAPITALISED ROBUST LIQUIDITY RECORD BUFFER & PORTFOLIO POSITION QUALITY • Successfully withstood • Highly capitalised for • Consistent track record of • Cash an
Slide 8: Navigating COVID pandemic
Navigating COVID 19 pandemic �� ENDEAvo:Us ASSETS AND PORTFOLIO QUALITY • The AUM stood at INR 54,852 Mn. a growth of 3.48% over the corresponding period. However, the two quarters are not comparable due to the pandemic impact. The Gross Stage 3 Assets is 2.30% and Net Stage 3 Assets is 1.80% of AUM
Slide 9: Diversified product offerings presenting significant growth opportunities
Diversified product offerings presenting significant �� ENDEAvo:Us growth opportunities MAS focuses on serving the underserved credit needs of mid and low income group segments Micro-Enterprise Loans of up to INR 300,000 to Micro-Enterprises which primarily include INR 28,934 Mn. retailers, trader
Slide 10: AUM by Product Category
AUM by Product Category �� ENDEAvo:Us AUM by Product Category (INR Mn.) Segment Performance Micro-Enterprise loans(MEL) SME loans 2-Wheeler loans Commercial Vehicle loans Sept -21 vs Sept-20 59,663 53,009 54,852 53,384 1,547 53,724 4,003 2,281 8.06% 1,582 2,029 1,504 4,654 3,267 3,597 3,610 Micro-En
Slide 11: Liability Management
Liability Management �� ENDEAvo:Us SOURCES OF FUND BORROWING as on 30th Sept 2021 COST OF BORROWING (COB)* 9.32% 9.10% 9.22% DIRECT ASSIGNMENT 8.86% 8.71% 40,843 CASH CREDIT 36,606 22% 31% 31,227 32,287 SECURITISATION 25,632 2% NON-CONVERTIBLE DEBENTURES 10% Mar-19 Mar-20 Mar-21 Sept-20 Sept-21 SUB
Slide 12: Going Forward
Going Forward �- ENDEAVO�S ASSET CREATION To anchor to our belief that, growth along with quality is the key to enhance the shareholders’ value. Anticipated growth for the next five years to be in the range of 20% - 30% with an understanding of recalibrating it depending on the macro situation,
Slide 13: Financial Review
... .. .............. � ENDEAVO�S FINANCIAL REVIEW 12
Slide 14: Key Highlights – Q2 FY22
Key Highlights – Q2 FY22 �� ENDEAvo:Us ASSET UNDER MANAGEMENT (AUM) PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH* 3.48% INR 54,852 Mn. (Sept - 20: INR 53,009 Mn.) INR 383 Mn. 12.04% (Q2 FY21: INR 342 Mn.) 13.89% RETURN ON AVG. BALANCE SHEET ASSETS* NET INTEREST INCOME (NII) COST OF BORROWING* (CO
Slide 15: Financial Performance – Q2 FY22
Financial Performance – Q2 FY22 �� ENDEAvo:Us ASSETS UNDER MANAGEMENT (AUM) NET WORTH CAGR 16.52% 13.85% CAGR 0.32% 3.48% 12367 59,663 11726 53,724 54,852 10862 53,384 53,009 9809 8637 Mar-19 Mar-20 Mar-21 Sept-20 Sept-21 Mar-19 Mar-20 Mar-21 Sept-20 Sept-21 ON & OFF BOOK AUM ON BOOK OFF BOOK 25% 19
Slide 16: Financial Performance – Q2 FY22
Financial Performance – Q2 FY22 �� ENDEAvo:Us REVENUE NET INTEREST INCOME (NII)* CAGR 3.05% CAGR -3.69% 6,727 5,939 5,592 -1.64% 2.94% 4005 3551 3294 1,523 1,567 821 808 FY19 FY20 FY21 Q2 FY21 Q2 FY22 FY19 FY20 FY21 Q2 FY21 Q2 FY22 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) CAGR -12.50% CAGR 0.07% 89
Slide 17: Financial Performance – Q2 FY22
Financial Performance – Q2 FY22 �� ENDEAvo:Us RETURN ON AVG. BALANCE SHEET ASSETS RETURN ON AVG. AUM (ROAUM)* (ROTA)* 4.46% 3.02% 2.95% 2.88% 4.02% 2.53% 2.50% 2.94% 2.94% 2.90% FY19 FY20 FY21 Q2 FY21 Q2 FY22 FY19 FY20 FY21 Q2 FY21 Q2 FY22 RETURN ON AVG. NET WORTH (RONW)** 18.89% 19.30% 14.65% 14.23
Slide 18: Financial Performance – Q2 FY22
Financial Performance – Q2 FY22 �� ENDEAvo:Us Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)*^ OPERATING EXPENSE AS % OF NII^ 1.70% 25.92% 1.59% 1.57% 22.67% 22.44% 18.71% 1.09% 15.22% 0.91% FY19 FY20 FY21 Q2 FY21 Q2 FY22 FY19 FY20 FY21 Q2 FY21 Q2 FY22 Efficiently maintaining the qualit
Slide 19: Financial Performance – Q2 FY22
Financial Performance – Q2 FY22 �� ENDEAvo:Us Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO *(CAR) 3.18 3.30 2.97 3.12 2.97 35.58% 29.70% 26.86% 26.85% 25.62% Mar-19 Mar-20 Mar-21 Sept-20 Sept-21 Mar-19 Mar-20 Mar-21 Sept-20 Sept-21 INTEREST COVERAGE RATIO (ICR) 2.08 1.84 1.7
Slide 20: Asset Under Management - Credit Quality
Asset Under Management - Credit Quality �� ENDEAvo:Us ASSET UNDER MANAGEMENT- DPD 8.00% 6.00% 0.71% 1.59% 0.69% 1.26% 1.88% 1.01% 0.35% 0.34% 1.00% 4.00% 0.42% 0.41% 1.25% 0.84% 0.63% 1.18% 0.91% 0.85% 1.22% 0.88% 1.84% 2.00% 2.60% 2.60% 1.75% 1.87% 1.36% 0.00% Mar-19 Mar-20 Mar-21 Sept-20 Sept-21 1
Slide 21: Credit Quality
Credit Quality � ENDEAVO�S (In INR Mn.) Sept-21 Sept-20 Particulars AUM Provision AUM Provision Stage 1 42235.40 135.58 29422.89 120.94 Stage 2 1070.69 108.75 778.61 86.48 Stage 3 854.24 274.00 631.69 214.66 TOTAL ON BOOK 44160.33 518.34 30833.19 422.08 Assigned Portfolio 10691.44 N/A 22175.51 N/A T
Slide 22: Constantly maintaining quality portfolio
Constantly maintaining quality portfolio �� ENDEAvo:Us Catalyst in growth of Entrepreneurs, not creating just borrowers STAGE 3 ASSETS 2.50% 2.30% 2.21% 1.94% 2.00% 1.56% 1.39% 1.42% 1.80% 1.50% 1.74% 1.52% 1.00% 1.14% 1.14% 1.16% 0.50% 0.00% Mar-19 Mar-20 Mar-21 Sept-20 June-21 Sept-21 GROSS STAGE
Slide 23: Reputed Marquee FIIs and DIIs shareholders base
Reputed Marquee FIIs and DIIs shareholders base �� ENDEAvo:Us Shareholding as on 30th Sept 2021 Marquee Non Promoter Shareholders MOTILAL PRIVATE EQUITY Mutual Fund 8.54% AXIS MUTUAL FUND IDFC MUTUAL FUND Trust TATA AIA LIFE INSURANCE 7.40% MOTILAL OSWAL MUTUAL FUND Foreign Portfolio ASK INVESTMENT
Slide 24: Financial Statement: FY19 – H1 FY2021-22
Financial Statement: FY19 – H1 FY2021-22 �� ENDEAvo:Us PROFIT & LOSS STATEMENT INR Mn. FY 2019 FY 2020 FY 2021 H1 FY 2021-22 Total Revenue 5592 6727 5939 3052 Expenses 3391 4446 4010 2042 Finance Costs 2041 2722 2645 1459 Operating Expense 805 899 616 359 Provisions and Loan Losses 545 825 749 224 P
Slide 25: MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary 24
Slide 26: About MRHMFL
About MRHMFL 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 incorporated in 2008 and headquartered in Ahmedabad, Gujarat
Slide 27: Navigating COVID 19 pandemic
Navigating COVID 19 pandemic ASSETS AND PORTFOLIO QUALITY • The AUM stood at INR 3,003 Mn. a growth of 6.58% over the corresponding period. However, the two quarters are not comparable due to the pandemic impact. The Gross Stage 3 Assets is 0.65% and Net Stage 3 Assets is 0.46% of AUM as on 30th Sep
Slide 28: Financial Performance – Q2 FY22
Financial Performance – Q2 FY22 ASSETS UNDER MANAGEMENT (AUM) NET WORTH 11.66% 6.58% CAGR 7.92% CAGR 2.68% 3,003 594 2,702 2,865 2,849 2,817 539 532 510 463 Mar-19 Mar-20 Mar-21 Sept-20 Sept-21 Mar-19 Mar-20 Mar-21 Sept-20 Sept-21 BORROWING GROSS STAGE 3 ASSETS & NET STAGE 3 ASSETS GROSS STAGE 3 ASS
Slide 29: Financial Performance – Q2 FY22
Financial Performance – Q2 FY22 REVENUE NET INTEREST INCOME (NII) CAGR 4.65% CAGR 4.18% 140 142 130 384 353 325 4.97% -1.15% 38 39 93 92 FY19 FY20 FY21 Q2 FY21 Q2 FY22 FY19 FY20 FY21 Q2 FY21 Q2 FY22 PROFIT BEFORE TAX (PBT) PROFIT AFTER TAX (PAT) 43 38 29 27 22 17 19 15 15 12 FY19 FY20 FY21 Q2 FY21 Q
Slide 30: Liability Management
Liability Management • The composition of our liability mix ensures healthy ALM and well diverse resource mix. Sources of Fund as on 30th Sept 2021 • The Company continues to demonstrate its capability of efficient liability management. • Capital adequacy ratio, as on 30th Sept 2021 is 51.63% agains
Slide 31: Credit Quality
Credit Quality Sept-21 Sept-20 (In INR Mn.) Particulars AUM Provision AUM Provision Stage 1 2,270.98 1.87 2,507.24 2.96 Stage 2 192.25 11.20 62.60 3.25 Stage 3 18.99 5.64 10.02 2.76 TOTAL ON BOOK 2,482.22 18.71 2,579.86 8.97 Assigned Portfolio 520.33 N/A 237.32 N/A TOTAL AUM 3,002.56 2,817.19 Partic
Slide 32: Understanding MAS
... .. .............. � ENDEAVO�S UNDERSTANDING MAS 31
Slide 33: About MAS – Fundamentals
About MAS �- ENDEAVO�S � � ........ VISION MISSION BELIEF To be one of the most efficient To constantly endeavor, to attain excellence and “We have miles to go & Promises to keep……” distributors of financial services and create a very wide Financial distribution network and “Together we can and we w
Slide 34: Unique and Robust Distribution Network Through NBFC Partners (1/3)
Unique and Robust Distribution Network �� ENDEAvo:Us Through NBFC Partners (1/3) AIM & OUR UNDERSTANDING Efficient last mile delivery of credit Value chain approach has proven to be Better quality of intermediation with Revenue sharing model ensures scalability across its product range namely MEL, t
Slide 35: Unique and Robust Distribution Network Through NBFC Partners (2/3)
Unique and Robust Distribution Network �� ENDEAvo:Us Through NBFC Partners (2/3) IMPACT MAS NBFCs Borrowers Eco-System • Widens its network while maintaining • Value addition in improving their • Creates an all-round enabling • Catalyst in Efficient last mile delivery a relatively lower risk profile
Slide 36: Sharpening the learning curve (3/3)
Sharpening the learning curve(3/3) �� ENDEAVO�S The learning curve is further strengthened: CREDIT ASSESSMENT Continuous strengthening of due diligence and audit process - both pre and post disbursement. Our proven track record of Further strengthening the field due more than INR 15,000 Crore dilige
Slide 37: Robust and Comprehensive Credit Assessment & Risk Management Framework
Robust and Comprehensive Credit Assessment & �� ENDEAvo:Us 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 SME Loans • Analysis of business po
Slide 38: Team MAS
Team MAS �- ENDEAVO�S EXPERIENCED PROMOTER Mr. Kamlesh Chimanlal Gandhi, aged 55 years, is the Founder, Chairman and Managing Director of MAS since inception. He visualized the opportunities in the retail financial services very early and has been leading the strategic initiatives and the execut
Slide 39: Team MAS – Eminent Directors
Team MAS �� ENDEAVO�S EMINENT DIRECTORS Mrs. Darshana Saumil Pandya Mr. Bala Bhaskaran Mr. Chetan Ramniklal Shah Mr. Umesh Rajanikant Shah Mrs. Daksha Niranjan Shah Executive Director & CEO Independent Director Independent Director Independent Director Independent Director Darshana Saumil Pandya,
Slide 40: Major events and milestones
Major events and milestones �� ENDEAvo:Us On incorporation, commenced retail Listing of Equity Shares on BSE & NSE Disbursement and AUM crossed Received capital infusion of INR 350 1995 finance operations with Two-wheeler and Micro-Enterprise loans 2013 INR 10 Bn. 2018 Mn. from MOSL Raised
Slide 41: The Power of Distribution
<Ifie (J'ower of(J)istri6ution REGISTERED OFFICE MAS Financial Services Limited 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009 www.mas.co.in INVESTOR CONTACT Mr. Ankit Jain Mr. Nishant Vyas Chief Financial Officer Investor Relations Manager 079-41106682 079-41106551 ankit_jain@mas.
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