Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q1 FY22 Earnings Presentation
41 slides from Mas Financial Services's earnings presentation, Aug 11, 2021
Slide 1: Investor Presentation cover letter to stock exchanges
Jll!{J\� FINANCIAL SERVICES LIMITED '11ie <Power of <Distri6utwn August 11, 2021 MFSL/SEC/EQ/2021/51 To, To, The Manager, General Manager National Stock Exchange of India Limited BSE Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block Bandra-Kurla Complex Mumbai - 400
Slide 2: Investor Presentation – Q1 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- Q1 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 51,616 Mn. 6 99 Rajasthan • I 9 branches covering • 1 branch major towns AUM States and NCR Branches of Delhi Gujarat • 55 branches across the state Madhya Pradesh 3,486 6,00,000+ • 10 branch
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 51,616 Mn. a contraction of 8.77% over the corresponding period. However, the two quarters are not comparable due to the pandemic impact. The Gross Stage 3 Assets is 2.21% and Net Stage 3 Assets is 1.74% o
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 27,619 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 June -21 vs June-20 59,663 56,577 53,384 1,547 53,724 4,003 1,588 4,008 51,616 19.34% 1,582 2,029 4,654 3,267 2,118 Micro-Enterpr
Slide 11: Liability Management
Liability Management �� ENDEAvo:Us SOURCES OF FUND BORROWING as on 30th June 2021 COST OF BORROWING (COB)* 36,606 9.32% 9.10% 9.24% 35,429 8.86% 8.72% DIRECT ASSIGNMENT 31,227 29,954 26% CASH CREDIT 25,632 31% NON-CONVERTIBLE DEBENTURES 10% Mar-19 Mar-20 Mar-21 June-20 June-21 SUB DEBT FY19 FY20 FY2
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 – Q1 FY22
Key Highlights – Q1 FY22 �� ENDEAvo:Us ASSET UNDER MANAGEMENT #(AUM) PROFIT AFTER TAX (PAT) RETURN ON AVG. NET WORTH* 8.77% INR 51,616 Mn. (June - 20: INR 56,577 Mn.) INR 368 Mn. 0.64% (Q1 FY21: INR 366 Mn.) 13.76% RETURN ON AVG. BALANCE SHEET ASSETS* NET INTEREST INCOME^(NII) COST OF BORROWING* (CO
Slide 15: Financial Performance – Q1 FY22
Financial Performance – Q1 FY22 �� ENDEAvo:Us ASSETS UNDER MANAGEMENT (AUM) NET WORTH 15.33% CAGR 16.52% CAGR 0.32% -8.77% 11726 12102 59,663 56,577 53,384 53,724 10494 51,616 9809 8637 Mar-19 Mar-20 Mar-21 June-20 June-21 Mar-19 Mar-20 Mar-21 June-20 June-21 ON & OFF BOOK AUM ON BOOK OFF BOOK 25% 2
Slide 16: Financial Performance – Q1 FY22
Financial Performance – Q1 FY22 �� ENDEAvo:Us REVENUE NET INTEREST INCOME (NII)* CAGR 3.05% CAGR -3.69% 6,727 5,939 5,592 4005 -13.71% -7.42% 3551 3294 910 786 1,604 1,485 FY19 FY20 FY21 Q1 FY21 Q1 FY22 FY19 FY20 FY21 Q1 FY21 Q1 FY22 OPERATING EXPENSE# PROFIT AFTER TAX (PAT) CAGR -12.50% CAGR 0.07%
Slide 17: Financial Performance – Q1 FY22
Financial Performance – Q1 FY22 �� ENDEAvo:Us RETURN ON AVG. BALANCE SHEET ASSETS RETURN ON AVG. AUM (ROAUM)* (ROTA)* 4.46% 3.02% 2.95% 4.02% 2.80% 2.53% 2.52% 3.22% 2.94% 2.90% FY19 FY20 FY21 Q1 FY21 Q1 FY22 FY19 FY20 FY21 Q1 FY21 Q1 FY22 RETURN ON AVG. NET WORTH (RONW)** 18.89% 19.30% 15.81% 14.65
Slide 18: Financial Performance – Q1 FY22
Financial Performance – Q1 FY22 �� ENDEAvo:Us Optimized cost structure OPERATING EXPENSE RATIO (OE RATIO)* OPERATING EXPENSE AS % OF NII 22.67% 22.44% 1.70% 1.59% 19.00% 18.71% 1.09% 1.13% 13.45% 0.84% FY19 FY20 FY21 Q1 FY21 Q1 FY22 FY19 FY20 FY21 Q1 FY21 Q1 FY22 Efficiently maintaining the quality
Slide 19: Financial Performance – Q1 FY22
Financial Performance – Q1 FY22 �� ENDEAvo:Us Strongly Capitalized DEBT – EQUITY RATIO (DER) CAPITAL ADEQUACY RATIO *(CAR) 3.18 3.12 2.97 2.85 2.93 34.24% 29.70% 28.42% 26.86% 26.85% Mar-19 Mar-20 Mar-21 June-20 June-21 Mar-19 Mar-20 Mar-21 June-20 June-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% 1.80% 0.69% 1.01% 0.35% 0.41% 1.00% 4.00% 0.41% 1.25% 1.36% 1.03% 1.18% 0.91% 0.39% 1.22% 0.88% 0.95% 2.00% 1.79% 2.60% 0.78% 1.75% 1.87% 0.91% 1.13% 0.00% Mar-19 Mar-20 Mar-21 June-20 June-21 1
Slide 21: Credit Quality
Credit Quality � ENDEAVO�S (In INR Mn.) June-21 June-20 Particulars AUM Provision AUM Provision Stage 1 38630.00 125.70 29918.30 93.58 Stage 2 1104.31 96.94 832.45 95.50 Stage 3 736.66 242.63 596.77 155.73 TOTAL ON BOOK 40470.96 465.28 31347.52 344.80 Assigned Portfolio 11145.39 N/A 25229.73 N/A TOT
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% 2.21% 1.94% 2.00% 1.39% 1.42% 1.41% 1.50% 1.74% 1.52% 1.00% 1.14% 1.14% 1.14% 0.50% 0.00% Mar-19 Mar-20 Mar-21 June-20 June-21 GROSS STAGE 3 ASSETS NET STAGE 3
Slide 23: Reputed Marquee FIIs and DIIs shareholders base
Reputed Marquee FIIs and DIIs shareholders base �� ENDEAvo:Us Shareholding as on 30th June 2021 Marquee Non Promoter Shareholders MOTILAL PRIVATE EQUITY Mutual Fund 8.71% 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 – Q1 FY2021-22
Financial Statement: FY19 – Q1 FY2021-22 �� ENDEAvo:Us PROFIT & LOSS STATEMENT INR Mn. FY 2019 FY 2020 FY 2021 Q1 FY 2021-22 Total Revenue 5592 6727 5939 1485 Expenses 3391 4446 4010 990 Finance Costs 2041 2722 2645 699 Operating Expense 805 899 616 149 Provisions and Loan Losses 545 825 749 141 Pro
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 pandemic
Navigating COVID 19 pandemic ASSETS AND PORTFOLIO QUALITY • The AUM stood at INR 2,947 Mn. a growth of 3.71% over the corresponding period. However, the two quarters are not comparable due to the pandemic impact. The Gross Stage 3 Assets is 0.59% and Net Stage 3 Assets is 0.42% of AUM as on 30th Jun
Slide 28: Financial Performance – Q1 FY22
Financial Performance – Q1 FY22 ASSETS UNDER MANAGEMENT (AUM) NET WORTH 7.62% 3.71% CAGR 7.92% CAGR 2.68% 2,947 577 2,702 2,865 2,849 2,842 539 536 510 463 Mar-19 Mar-20 Mar-21 June-20 June-21 Mar-19 Mar-20 Mar-21 June-20 June-21 BORROWING GROSS STAGE 3 ASSETS & NET STAGE 3 ASSETS 0.59% GROSS STAGE
Slide 29: Financial Performance – Q1 FY22
Financial Performance – Q1 FY22 REVENUE NET INTEREST INCOME (NII) CAGR 4.65% CAGR 4.18% 140 142 130 384 353 325 11.49% 1.41% 88 89 32 36 FY19 FY20 FY21 Q1 FY21 Q1 FY22 FY19 FY20 FY21 Q1 FY21 Q1 FY22 PROFIT BEFORE TAX* (PBT) PROFIT AFTER TAX *(PAT) 43 38 29 27 22 17 14 11 11 8 FY19 FY20 FY21 Q1 FY21
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 June 2021 • The Company continues to demonstrate its capability of efficient liability management. • Capital adequacy ratio, as on 30th June 2021 is 49.97% agains
Slide 31: Credit Quality
Credit Quality June-21 June-20 (In INR Mn.) Particulars AUM Provision AUM Provision Stage 1 2,374.05 1.85 2,492.29 3.47 Stage 2 210.66 11.09 85.31 4.62 Stage 3 16.68 4.95 9.70 2.67 TOTAL ON BOOK 2,601.38 17.90 2,587.30 10.76 Assigned Portfolio 345.59 N/A 254.25 N/A TOTAL AUM 2,946.97 2,841.55 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 2008 2018 1995 - Acquired second and third round of capital 2016 - Listing of Equity Shares on Bombay Stock Exchange & 2020 infusion worth INR 435 2012 2014 National Stock Exchange On incorporation, - Completed 25th Year of Mn. and INR 400 Mn. from - Bank lo
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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