Aavas Financiers Limited

Sachinder Bhinder

Managing Director and Chief Executive Officer

Ghanshyam Rawat

Chief Financial Officer

Ashutosh Atre

Chief Risk Officer

Rakesh Shinde

Head of Investor Relations

23%

quarter where we saw a strong traction in logins and decent pick-up in disbursements which grew by 23% sequentially and 17% Y-o-Y. In terms of AuM growth, we have maintained our growth run rate of 20%

17%

a strong traction in logins and decent pick-up in disbursements which grew by 23% sequentially and 17% Y-o-Y. In terms of AuM growth, we have maintained our growth run rate of 20% Y-o-Y. We have compl

20%

23% sequentially and 17% Y-o-Y. In terms of AuM growth, we have maintained our growth run rate of 20% Y-o-Y. We have completed upgradation of all major tech platforms which are now stabilizing, this w

Rs 192

nce and our assessment of the outlook. We have delivered AuM growth of 20% Y-o-Y, reaching AuM of Rs 192 bn. In Q3FY25, we disbursed loans worth around Rs 16 bn a growth of 17% Y-o-Y with cumulative disb

Rs 16

red AuM growth of 20% Y-o-Y, reaching AuM of Rs 192 bn. In Q3FY25, we disbursed loans worth around Rs 16 bn a growth of 17% Y-o-Y with cumulative disbursement of Rs 41 bn for 9MFY25. Our Net profit for 9M

Rs 41

5, we disbursed loans worth around Rs 16 bn a growth of 17% Y-o-Y with cumulative disbursement of Rs 41 bn for 9MFY25. Our Net profit for 9MFY25 grew by 21% Y-o-Y to Rs 4.20 bn. Our Net Worth continues t

21%

f 17% Y-o-Y with cumulative disbursement of Rs 41 bn for 9MFY25. Our Net profit for 9MFY25 grew by 21% Y-o-Y to Rs 4.20 bn. Our Net Worth continues to compound quarter after quarter at the rate of aro

Rs 4.20

th cumulative disbursement of Rs 41 bn for 9MFY25. Our Net profit for 9MFY25 grew by 21% Y-o-Y to Rs 4.20 bn. Our Net Worth continues to compound quarter after quarter at the rate of around 16% Y-o-Y. Ou

16%

-Y to Rs 4.20 bn. Our Net Worth continues to compound quarter after quarter at the rate of around 16% Y-o-Y. Our calculated spread has improved by 4 bps sequentially to 5.72% in Q3FY25. Our NIMs exp

4 bps

und quarter after quarter at the rate of around 16% Y-o-Y. Our calculated spread has improved by 4 bps sequentially to 5.72% in Q3FY25. Our NIMs expanded more than 10 bps Y-o-Y during the quarter to 7.

5.72%

ter at the rate of around 16% Y-o-Y. Our calculated spread has improved by 4 bps sequentially to 5.72% in Q3FY25. Our NIMs expanded more than 10 bps Y-o-Y during the quarter to 7.75%. Our focus contin

10 bps

lculated spread has improved by 4 bps sequentially to 5.72% in Q3FY25. Our NIMs expanded more than 10 bps Y-o-Y during the quarter to 7.75%. Our focus continues to underwrite quality business with risk ad

“We will be accelerating our branch expansion strategy by opening more branches in the calendar year.”

“We expect more budgetary allocation and supply of Affordable housing in upcoming Union budget enabling faster and deeper penetration of Housing for all.”

“I am confident that with our strong risk management practices, diversified distribution reach and execution capabilities of our time-tested team, we will achieve our milestones and deliver value to our stakeholders.”

“Our NIM in absolute terms has increased by 16% Y-o-Y in Q3 FY25.”

“Our asset quality remains within the guided range with 1 day past due below 4% at 3.85% in Q3 FY25 and Gross Stage 3 & Net Stage 3 under 1.25% stood at 1.14% and 0.81% respectively.”

“So how is the underlying health of the portfolio looking like and does this pose a risk to our near-term asset quality and credit cost guidance because of higher default flows in this quarter from the delinquent pool?”

“So are we changing our guidance on growth front or is it that 20% is now a new normal and also give to related question.”

“If we aim for 20% even for this current fiscal.”

“But going forward as we talk to the people across, I think that easing out of E-Khatas are moving across.”

“And we will be able to maintain that along the time this stabilises, as an initial output really to deliver good volumes.”

Sachinder Bhinder

19

Ghanshyam Rawat

14

Moderator

10

Renish Bhuva

6

Yash Gujarathi

6

Shweta Daptardar

3

Shubranshu Mishra

3

Raghav Garg

2

Abhijit Tibrewal

2

Rajiv Mehta

2

Rakesh Shinde

Ladies and gentlemen, good day, and welcome to the Aavas Financial Limited Q3 FY25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not guarantees of future performance and involves risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference call is being recorded. I now hand the conference over to Mr. Rakesh Shinde, Head, Investor Relations of Aavas Financiers Limited. Thank you, and over to you, sir. Thank you, Steve. Good evening, everyone. I extend a very warm welcome to all participants. Thank

Sachinder Bhinder

Thank you, Rakesh, and very good evening, and Happy 2025 to everyone. I am delighted to welcome you all to our Q3FY25 Earnings Call and thank you for joining the call late evening. Q3FY25 has been a good quarter where we saw a strong traction in logins and decent pick-up in disbursements which grew by 23% sequentially and 17% Y-o-Y. In terms of AuM growth, we have maintained our growth run rate of 20% Y-o-Y. We have completed upgradation of all major tech platforms which are now stabilizing, this was one of the fastest tech implementations in the industry. We believe we have set the foundation for sustainable, scalable and profitable growth. We now focusing on leveraging this state of art tech platforms by strengthening governance, driving scale, optimising cost and boosting operating efficiencies across functions. Ladies and gentlemen, with that preamble, I shall now take you through the quarterly performance and our assessment of the outlook. We have delivered AuM growth of 20% Y-o-Y

Ghanshyam Rawat

Thank you, Sachinder. Good evening, everyone, and a warm welcome to our earnings call. To provide update on borrowings first: In terms of liability, we have one of the best well-diversified liability franchises. We have always been innovative in exploring new avenues of sourcing, and I am happy to share that we have successfully raised NCDs amounting to Rs 6.3 bn from the IFC in Q3. This is largest NCD raised by company till date. This achievement will enable us to channel these funds towards promoting Individual green homes construction, reinforcing our unwavering commitment to sustainable and inclusive development. We are a unique HFC where our tenure of liabilities is higher than the tenure of assets. We continued to borrow judiciously, raising around Rs. 46.2 bn at 8.41% for 9MFY25. Total outstanding borrowings as of 31st December 2024 stood at Rs. 172 bn. Overall borrowing mix as of 31st December 2024 is 50.3% from term loans, 24.8% from assignment/securitization, 15.9% from NHB r

Ashutosh Atre

Thank you, Ghanshyam Ji. Good evening, everyone. I am pleased to share the key portfolio risk parameters with you. Asset Quality & Provisioning: Aavas is strongly positioned to continue delivering industry-leading asset quality. Our asset quality remains within the guided range with 1 day past due below 4% at 3.85% in Q3 FY25 and Gross Stage 3 & Net Stage 3 under 1.25% stood at 1.14% and 0.81% respectively. In terms of geography, average 1+DPD and GNPA in our vintage states remained well below 4% and 1% of AuM respectively. Whereas other emerging states 1+ DPD and GNPA remained well below 3% and 1% of AuM respectively. Similarly, in terms of ticket size of more than 15 lacs 1+ DPD and GNPA remained well below 4.0% and 0.8%; whereas in case of ticket size less than Rs 15 lacs 1+ DPD and GNPA remained below 4.5% and 1.25% respectively. Our total ECL provisioning, including that for COVID-19 impact as well as Resolution Framework 2.0, stood at Rs. 1.01 bn as of 31st Dec 2024. As per our q

Sachinder Bhinder

That's right and again to re-iterate that if you look at the 1+DPD it is a 3.85% and I think that is a good indicator for us.

Renish Bhuva

Second is on the AuM by ticket size. What % of our AuM is more than Rs. 15 lakh ticket size? I know in in terms of number of active loans it is 15% but in terms of AuM it would