Capitaline

Results 04-Aug-23

Analysis

AAVAS Financiers

AUM rises 23%

The income from operation of AAVAS Financiers increased 32.34% to Rs 466.97 crore in Q1FY2024. Overall OPM eased to 71.68% in Q1FY2024 from 72.34% in Q1FY2023, leading to 31.13% rise in operating profit to Rs 334.71 crore. Other expenditure as a percentage of total income moved down to 6.78% from 8.17% in Q1FY2024. The staff cost as a percentage of total income increased to 20.32% from 19.23% in Q1FY2024. The provisions as percentage of total income increased to 1.22% from 0.26% in Q1FY2024.

Other income declined 55.56% to Rs 0.04 crore. Interest cost increased 38.57% to Rs 186.63 crore. Depreciation moved up 16.85% to Rs 7.28 crore. PBT moved up 23.07% to Rs 140.84 crore.

The effective tax rate declined to 22.02% in Q1FY2024 compared to 22.19% in Q1FY2023. Provision for tax was expense of Rs 31.01 crore, compared to Rs 25.39 crore. Profit after tax rose 23.34% to Rs 109.83 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate were nil in both the periods. Finally, Net profit attributable to owners moved up 23.34% to Rs 109.83 crore.

Book value of the company as at Rs 428.6 and adjusted book value was Rs 419.0 (net of NNPA) end June 2023.

Business highlights

AUM increased 23% to Rs 14650 crore end June 2023 over June 2022, of which Home Loans contributed 69.8% and other mortgage loans contributed 30.2%.

The total number of branches stands at 348 end June 2023.

Gross Stage 3 is 1.00% comprising 0.87% of above 90 DPD assets & 0.13% of up to 90 DPD assets (categorized as GNPA/Gross Stage 3 on account of RBI notification) and Net Stage 3 is 0.73%

About 88.8% of borrowings are from Term Loans, Assignment, and NHB Refinancing and 11.2% of borrowings are from debt capital market (of which 78.3% is from development finance institutions like IFC, CDC & ADB), with no borrowings by way of Commercial Papers.

The Company has a Net worth of Rs 3388.7 crore end June 2023.

Financial Performance FY2023

The income from operation of AAVAS Financiers increased 23.33% to Rs 1608.76 crore in FY2023. Overall OPM eased to 72.50% in FY2023 from 73.04% in FY2022, leading to 22.42% rise in operating profit to Rs 1,166.35 crore. The provisions as percentage of total income declined to 0.77% from 1.73% in FY2023. Other expenditure as a percentage of total income moved up to 7.98% from 7.27% in FY2023. The staff cost as a percentage of total income increased to 18.75% from 17.96% in FY2023.

Other income increased 53.33% to Rs 1.84 crore. There is 23.78% rise in interest cost at Rs 591.05 crore and 20.88% rise in depreciation to Rs 28.72 crore, Profit before tax increased 21.15% to Rs 548.42 crore. There is no extraordinary item. After which, PBT increased 21.15% to Rs 548.42 crore.

The effective tax rate increased to 21.66% in FY2023 compared to 21.54% in FY2022. Provision for tax was expense of Rs 118.78 crore, compared to Rs 97.51 crore. Profit after tax rose 20.96% to Rs 429.64 crore.

Profit attributable to non-controlling interest was nil in both the periods.The share of profit of associate were nil in both the periods. Finally, Net profit attributable to owners rose 20.96% yoy to Rs 429.64 crore in FY2023.

Aavas Financiers: Consolidated Results
Particulars	2306 (3)	2206 (3)	Var %	2303 (12)	2203 (12)	Var %
Income from Operations	466.97	352.86	32	1608.76	1304.45	23
OPM (%)	72.89	72.60		73.27	74.77
OP	340.39	256.18	33	1178.77	975.36	21
Other Income	0.04	0.09	-56	1.84	1.20	53
PBDIT	340.43	256.27	33	1180.61	976.56	21
Interest (Net)	186.63	134.68	39	591.05	477.50	24
PBDT	153.80	121.59	26	589.56	499.06	18
Provisions	5.68	0.92	517	12.42	22.61	-45
Depreciation / Amortization	7.28	6.23	17	28.72	23.76	21
PBT before EO	140.84	114.44	23	548.42	452.69	21
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	140.84	114.44	23	548.42	452.69	21
Tax Expenses	31.01	25.39	22	118.78	97.51	22
PAT	109.83	89.05	23	429.64	355.18	21
Profit attributable to non-controlling interest	0.00	0.00	-	0.00	0.00	-
Share of profit/loss of Associate	0.00	0.00	-	0.00	0.00	-
Net Profit after minority and share in associate	109.83	89.05	23	429.64	355.18	21
EPS *	55.6	45.1		54.3	44.9
Adj BV (Rs)	419.0	359.1		407.6	346.9
* Annualized on current equity of Rs 79.06 crore. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

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