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
Conference Call with Aavas Financiers Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Housing Finance company Aavas Financiers announced H1FY25 results Financial Highlights: AUM of Rs 184 billion; Growth of 20% YoY. PAT at Rs 2.74 billion; Growth of 18% YoY. Gross Stage 3 at 1.08%; 1+ DPD at 3.97%. ROA at 3.28% and ROE at 14.01%. Positive ALM & Strong Capital Base. Other Highlights: Assets under Management (AuM) of the company grew by 20% YoY and stood at ~Rs 184 billion. Disbursements during H1FY25 were Rs 25.05 billion registering growth of 8% YoY. Net Profit grew by 18% YoY to Rs 2.74 billion for H1FY25 led by a 12% YoY growth in Net Interest Margin to Rs 6.36 billion, coupled with sharp improvement in operating leverage. Opex to Assets ratio improved sharply by 40 bps YoY in H1FY25 at 3.25% and improved by 9 bps QoQ to 3.18% in Q2FY25. Spread and NIM stood at 4.89% and 7.61%, respectively for H1FY25. As on Sep-24, Gross Stage 3 was 1.08%, Net Stage 3 was 0.78% and 1+ DPD stood at 3.97%. Credit cost during the quarter was 11 bps for Q2FY25 and 16 bps for H1FY25. n terms of the borrowing mix, 50.8% of our borrowings are from Term Loans, 25.1% is from Assignment & Co-lending, 18.1% from NHB Refinancing; 6.0% is from debt capital market (of which 69.6% is from development finance institutions like IFC, CDC & ADB), with no borrowings through CPs. Net Worth grew by 15% YoY to Rs 40.5 billion as on H1FY25. The total number of branches stands at 372 as on H1FY25. During Q2FY25, we have expanded in the state of Tamil Nadu with a branch opening in Hosur. With this Aavas now covers 14 States/ UT. Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, For India to be the global leader in economic growth, we believe the housing sector will be at the forefront of this transformation. Current conditions are marked by low mortgage penetration and a significant urban housing shortage presenting unique opportunities for innovation. At Aavas, we are committed to serving unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets by developing tailored financial solutions. Our focus on achieving risk-adjusted returns underscores our dedication to fostering housing affordability and creating sustainable value in these communities. The green shoots of our technology transformation are already evident, with improvements in turnaround time (TAT) enhancing customer service. This tech-led evolution is expected to further boost productivity and efficiency across the organization. We are excited to share that our network has expanded to 372 branches across 14 states, highlighted by the recent opening of a new branch in Hosur, Tamil Nadu, during Q2 FY25. Building on a robust portfolio and the valuable insights we have gathered from our operations in Karnataka since 2021, this strategic expansion underscores our ongoing confidence in the potential of this region. Aavas has well diversified liability franchised with prudent cash management Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 46.48% as of September 2024. Our granular underwriting practices and collection efforts, backed by cutting-edge technology, have led to an improvement in 1+ days past due, contained at 3.97% as of September 2024. The portfolio’s health remains robust, with Gross Stage 3 at a mere 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 unwavering 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 innovastive housing solutions for underserved communities. We continue to maintain a razor-sharp focus on Governance, Asset Quality, Profitability, and Growth. By leveraging technology and creating superior customer experiences, we are optimistic about the future. Our strategic initiatives are set to drive sustainable growth and enhance shareholder value.” Result PDF