Housing Finance company Aavas Financiers announced Q1FY25 results: Financial Highlights: AUM of Rs 178 billion; Growth of 22% YoY PAT at Rs 1.26 billion; Growth of 15% YoY Gross Stage 3 at 1.01%; 1 DPD at 3.65% ROA at 3.01% and ROE at 13.14% Positive ALM & Strong Capital Base Business Highlights: Assets under Management (AUM) of the company grew by 22% YoY and stood at ~Rs 178 billion. Disbursement during the quarter was Rs 12.11 billion i.e., a growth of 13% YoY. Net Profit grew by 15% YoY to Rs 1.26 billion for Q1FY25 boosted by a 10% YoY growth in Net Total Income, coupled with strong AUM growth. Opex declined sequentially by 4% resulting in an improvement in Opex ratio by 29bps QoQ to 3.27% during the quarter. Spread and NIM during the quarter stood at 5.00% and 7.31%, respectively. In Q1FY25, Gross Stage 3 is at 1.01% and Net Stage 3 is 0.72%. 1+ DPD remained well below 4% at 3.65%. Credit cost during the quarter was at 20 bps. In terms of Borrowings mix, 91.4% of our borrowings are from Term Loans, Assignment, and NHB Refinancing, 8.6% of our borrowings are from debt capital market (of which 77.2% is from development finance institutions like IFC, CDC & ADB), with no borrowings through CPs. Net Worth grew by 15% YoY to Rs 39 billion as on 30th June 2024. The total number of branches stands at 371 as on 30th June 2024. During Q1 FY25, we have added 4 new branches. Commenting on the performance Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, India stands on the cusp of a remarkable economic journey, and the housing sector is poised to lead the charge. With low mortgage penetration and a significant urban housing shortage across various income levels and regions, Aavas is committed to being at the forefront of this industry transformation. Our focus remains steadfast on serving the unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets, with a relentless pursuit of risk-adjusted returns. 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. Our network has expanded to 371 branches across 13 states, with the addition of 4 new branches this quarter. This strategic expansion deepens our footprint and reinforces our presence in a contiguous manner. Thanks to prudent cash management and a robust liability profile, we have successfully contained borrowing costs and maintained our spreads around 5%, in line with our guidance. Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 44.48% as of June 2024. Our granular underwriting practices and collection efforts, backed by cutting-edge technology, have led to an improvement in 1+ days past due, decreasing from 3.68% in June 2023 to 3.65% in June 2024. The portfolio’s health remains robust, with Gross Stage 3 at a mere 1.01% in June 2024. The FY25 Union Budget marks a transformative leap in addressing India’s housing needs by significantly expanding the Pradhan Mantri Awas Yojana to include 30 million Additional Houses, backed by a proposed central assistance of Rs.2.2 trillion over the next 5 years, underscoring the Government of India’s commitment to providing “Housing For All”. The introduction of an interest subsidy scheme for urban housing will make loans more accessible for the economically weaker sections and low-income groups, enabling countless individuals to realize their dreams of home ownership. This decisive step forward underscores the Government’s commitment to ensuring every Indian has access to safe, affordable housing, fostering inclusive growth and prosperity for all. This aligns perfectly with the mission and vision of Aavas. 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
Housing Finance company Aavas Financiers announced Q4FY24 & FY24 results: Financial Highlights: Assets under Management (AUM) of the company grew by 22.2% YoY at ~Rs 173 billion. Disbursement in Q4FY24 grew strongly to report the highest-ever quarterly disbursements with growth of 39% QoQ and 20% YoY to Rs 18.93 billion. Net Profit grew by 15% YoY to Rs 4.91 billion for FY24 led by 17% YoY growth in Net Total Income. In Q4FY24, our Net Profit grew by 22% QoQ. Spread and NIM during the quarter stood at 5.06% and 7.91% respectively. Gross Stage 3 is at 0.94% comprising 0.82% of >90 DPD assets & 0.12% of up to 90 DPD assets (categorized as GNPA/Gross Stage 3 on account of RBI notification) and Net Stage 3 is 0.67% In terms of Borrowings mix, 91.0% of our borrowings are from Term Loans, Assignment, and NHB Refinancing, 9.0% of our borrowings are from debt capital market (of which 76.6% is from development finance institutions like IFC, CDC & ADB), with no borrowings through CPs. Net Worth grew by 15% YoY to Rs. 37,733 million as of 31st Mar 2024. The total number of branches stands at 367 as of 31st Mar 2024. Commenting on the performance Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, India is about to embark on a ten-year economic trajectory. Given its low mortgage penetration and severe urban housing shortage across income levels and geographic areas, the housing industry is poised to be a bellwether among all other industry sectors. We strongly believe that we can continue our momentum in serving the unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets, with relentless focus on risk-adjusted returns. FY24 has been the year of transformation and transition where we have undergone the technology transformation coupled with management transition despite of this the company has delivered on its stated guidance of AUM growth as well as on profitability. In Q4FY24, we delivered the highestever quarterly disbursement with growth of 39% QoQ & 20% YoY. Green Shoots in technology transformation are already visible with TAT improvement and in turn resulting in better customer service. We are confident that this tech transformation would benefit us improving productivity and efficiency across organization. Aavas now does business across 367 branches in 13 States. We have added 21 new branches in FY24. We continue to deepen our footprint in the states where we are already present in a contiguous manner. Our prudent management of cash and strong liability profile enabled us to contain the cost of borrowing and maintain our spreads in line with guidance of around 5%. The company is well capitalized with CRAR of 44% as of Mar-2024 and sufficient balance sheet liquidity of Rs 30.3 billion. The Company’s focused granular underwriting risk practices & collections efforts backed by technology, led to an improvement in 1+ days past due from 3.30% in Mar-2023 to 3.12% in Mar-2024. Portfolio health remains strong with Gross Stage 3 at 0.94% in Mar-2024. We continue to maintain razor-sharp focus on Governance, Asset Quality, Profitability, and Growth leveraging technology, and creating superior customer experience. We remain optimistic about the future and are confident that our strategic initiatives will continue to drive sustainable growth and shareholder value.” Result PDF