Housing Finance company Aavas Financiers announced 9MFY24 results: Assets under Management (AUM) experienced a robust growth of 23% YoY, crossing the significant milestone of Rs 160 billion. Disbursement during the quarter exhibited a strong YoY growth of 13%, reaching Rs 13.6 billion. Net Profit demonstrated a solid 15% YoY growth, totaling Rs 3.48 billion for 9MFY24, driven by an impressive 18% YoY growth in Net Total Income. Spread and Net Interest Margin (NIM) for the quarter stood at 5.12% and 7.94%, respectively, showcasing stability and efficiency in interest-related metrics. Gross Stage 3 assets were reported at 1.09%, comprising 0.96% of assets with more than 90 days past due (DPD) and 0.13% of assets with up to 90 DPD. Net Stage 3 assets stood at 0.79%. Borrowings composition indicated a well-structured mix, with 89.9% sourced from Term Loans, Assignment, and NHB Refinancing. The remaining 10.1% involved borrowings from the debt capital market, with 76.2% sourced from development finance institutions like IFC, CDC, and ADB. No borrowings were reported through Commercial Papers. Net Worth demonstrated robust growth, increasing by 15% YoY to reach Rs 36,314 million as of December 31, 2023. The company's branch network expanded to a total of 351 branches as of December 31, 2023, reflecting a strategic presence across regions. Commenting on the performance Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, India is at the cusp of a decade-long growth journey. Amongst all industry sectors, housing will be a bellwether sector given its low mortgage penetration and massive urban housing shortage across geographies and income classes. Moreover, with budgetary announcement reflecting the continued government thrust for boosting ‘Housing for all’ addresses both demand and supply. The plan to build an additional 20 million houses in the next 5 years and to promote buying or building own houses under the “Rural Awas Yojana” augurs well with Aavas’s vision and mission. Given the small space that affordable housing finance players occupy in this market, we see significant headroom to grow. 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 a relentless focus on risk-adjusted returns. In FY24, we are undergoing a major technology transformation to build a scalable and sustainable platform. As a result, we have seen some disruption in business momentum initially. However, now we are witnessing month-on-month improvement in disbursements resulting in 8% QoQ growth in Q3 FY24. We are confident of delivering our guidance of 20-25% YoY AUM growth in this financial year." Result PDF