Conference Call with Aavas Financiers Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Housing Finance company Aavas Financiers announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Total income: Rs 63,748.80 lakh compared to Rs 54,680.21 lakh during Q4FY24. Profit before tax: Rs 19,322.38 lakh compared to Rs 17,749.41 lakh during Q4FY24. Net Profit: Rs 15,367.92 lakh compared to Rs 14,261.53 lakh during Q4FY24. FY25 Financial Highlights: Assets under Management (AuM) of the company has crossed milestone of Rs 200 billion this year. In FY25, our AUM grew by 18% YoY at Rs 204.2 billion. Disbursements during Q4FY25 grew by 27% QoQ to Rs 20.2 billion whereas in FY25 disbursement grew by 10% YoY to Rs 61.23 billion. Our Net profit for Q4 FY25 grew by 8% YoY to Rs 1.54 billion whereas for FY25 Net Profit grew by 17% YoY to Rs 5.74 billion, led by robust growth in operating profit led by healthy improvement in operating leverage. Opex to Assets ratio saw considerable improvement of 26 bps YoY in FY25 at 3.32% as a result of our cost optimisation strategy. Our spread during the quarter moderated by 5 bps sequentially to 4.89% on account of softening of AUM yield by 5 bps to 13.13% while our cost of borrowings remained unchanged at 8.24%. Our NIM in absolute terms has increased by 14% YoY in Q4 FY25 and 10% YoY in FY25. NIM as a percentage of total assets during Q4 FY25 stood at 8.11%, and at 7.64% during FY25. Our asset quality continues to be pristine, within the guided range with 1 day past due well below 5% at 3.39% in Q4 FY25 and Gross Stage 3 & Net Stage 3 under 1.25% stood at 1.08% and 0.73% respectively. Credit cost during Q4FY25 was 17 bps and 15 bps for FY25. In terms of the borrowing mix, 51% of our borrowings are from Term Loans, 25% is from Assignment, 14% from NHB Refinancing; 10% is from debt capital market (of which 83% is from development finance institutions like IFC, CDC & ADB). • Net Worth grew by 16% YoY to Rs 43.61 billion as on 31st March 2025. ROA was stable at 3.27% and ROE improved by 18 bps YoY to 14.12% in FY25. The total number of branches stands at 397 as on 31st March 2025, with 30 additions in FY25. Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, Building on the momentum of previous quarters, the affordable housing sector continues to present immense opportunities to drive growth and economic inclusivity. At Aavas, our steadfast commitment remains focused on empowering unserved, underserved, and underbanked customers in Tier 2 to Tier 4 markets by providing customized financial solutions that cater to their unique aspirations. Our approach, rooted in achieving risk-adjusted returns, reinforces our mission to foster housing affordability and create enduring value in these communities. Following the successful completion of the technological transformation during the year, we have already begun to observe tangible benefits. As of March 2025, the TAT from login to sanction has been reduced to just 7 days, a substantial improvement from the previous peak of 13 days. Additionally, the initiative has resulted in significant cost and time savings, contributing to enhanced productivity and operational efficiency across the organization. During the quarter, we expedited our branch expansion efforts, establishing 24 new locations to enhance our footprint in key states. As a result, our total branch network now comprises 397 branches across 14 states. Consistent with our strategic approach of contiguous growth, we remain committed to broadening our presence in both core and emerging markets. Aavas has well diversified liability franchised with prudent cash management. Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 44.5% as of March 2025. Our robust underwriting practices and collection efforts, backed by cutting-edge technology, have a yielded positive outcome with the 1+ days past due, contained at 3.39% as of March 2025 an improvement of 46 bps QoQ. The portfolio’s maintains strong overall health, demonstrated by a Gross Stage 3 at 1.08%. The launch of the PMAY 2.0 scheme, including the interest subsidy scheme for urban housing, will be pivotal in improving loan accessibility for economically weaker sections and low-income groups, empowering countless individuals to realize their dreams of homeownership. This bold initiative reflects the Government’s steady commitment to ensuring that every Indian has access to safe and affordable housing, driving inclusive growth and prosperity for all. It aligns with Aavas's mission and vision, enhancing our dedication to delivering innovative housing solutions for underserved communities. Our steadfast focus on Governance, Asset Quality, Profitability, and Growth remains at the core of our mission. Leveraging advanced technology and delivering exceptional customer experiences, we are confident in building a promising future. Through strategic initiatives, we aim to drive sustainable growth while maximizing value for our shareholders.” Result PDF
Housing Finance company Aavas Financiers announced Q3FY25 results Disbursements during Q3FY25 grew by 17% YoY and 23% QoQ to Rs 15.94 billion. Our Net profit for Q3FY25 grew by 26% YoY to Rs 1.46 billion, led by robust growth in Net Income coupled with sharp improvement in operating leverage. For Q3FY25 the Opex to Asset ratio stood at 3.27% and improved by 23 bps over Q3FY24. Our Spreads expanded by 5 bps sequentially to 4.94% in Q3FY25 and our NIMs expanded more than 10 bps YoY during the quarter to 7.75%. Our asset quality continues to be pristine, with 1+ DPD of less than 4% at 3.85% as of December 2024. In Q3FY25, Gross Stage 3 was at 1.14% and Net Stage 3 was at 0.81%. Net Worth grew by 16% YoY to Rs. 41.97 billion as on 31st December 2024. The total number of branches stands at 373 as on 31st December 2024. Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, The strong demand environment in the affordable housing segment reinforces our mission to empower more individuals and families to achieve their dream of homeownership, further driving our growth and success. At Aavas, our staunch commitment is to serve the unserved, underserved, and underbanked customers across Tier 2 to Tier 5 markets by developing bespoke financial solutions tailored to their unique needs. Our emphasis on achieving riskadjusted returns underscores our dedication to fostering housing affordability and creating sustainable value in these communities. The technological transformation completed in the previous quarter has already begun to deliver remarkable results. The Login to Sanction TAT has been reduced to just 7 days in December 2024, down from the peak of 13 days. Additionally, significant cost and time savings have been realized which will enhance productivity and efficiency across the organization. During the quarter our branch network has now expanded to 373 branches across 14 states. Remaining focused on our strategy to deepen and reinforce our presence in contiguous manner, we will be expanding our branch network in the coming months across core markets. Aavas has well diversified liability franchised with prudent cash management. Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 45.6% as of December 2024. Our granular underwriting practices and collection efforts, backed by cutting-edge technology, have a yielded positive outcome with the 1+ days past due, contained at 3.85% as of December 2024 an improvement of 12 bps QoQ and 10 bps YoY. The portfolio’s maintains strong overall health, demonstrated by a Gross Stage 3 at a mere 1.14%. The launch of the PMAY 2.0 scheme, including the interest subsidy scheme for urban housing, will be pivotal in improving loan accessibility for economically weaker sections and low-income groups, empowering countless individuals to realize their dreams of homeownership. This bold initiative reflects the Government’s steady commitment to ensuring that every Indian has access to safe and affordable housing, driving inclusive growth and prosperity for all. It aligns with Aavas's mission and vision, enhancing our dedication to delivering innovative housing solutions for underserved communities. Our unwavering commitment to Governance, Asset Quality, Profitability, and Growth remains paramount. By harnessing advanced technology and delivering exceptional customer experiences, we are confident in a bright future. Our strategic initiatives are poised to drive sustainable growth and maximize shareholder value.” Result PDF