Aavas Financiers Ltd. Results

H1FY25 Half Yearly Result Announced for Aavas Financiers Ltd.

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.”

Q1FY25 Quarterly Result Announced for Aavas Financiers Ltd.

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.”

Q4FY24 Quarterly & FY24 Annual Result Announced for Aavas Financiers Ltd.

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.”

9MFY24 Result Announced for Aavas Financiers Ltd.

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."