Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aptus Value Housing Finance India Ltd (BOM:543335, Financial) reported a strong AUM growth of 27% year-on-year, reaching INR9,679 crores.
- The company achieved a 22% year-on-year increase in profit after tax, amounting to INR354 crores.
- Net interest margin (NIM) was robust at 13.02%, indicating strong profitability.
- The company maintained a high collection efficiency of 99.28%, reflecting effective credit management.
- Aptus expanded its branch network significantly, opening 24 new branches in the quarter, with plans to add a total of 40 branches for the year.
Negative Points
- Non-performing assets (NPA) stood at 1.25%, which, while manageable, indicates room for improvement in asset quality.
- The company's provisioning increased due to conservative accounting policies, impacting profitability.
- There is a notable attrition rate at the sales officer level, between 25% to 30%, which could affect operational stability.
- The growth in the LAP (Loan Against Property) segment was lower at 12% year-on-year, lagging behind overall company growth.
- The company faces internal challenges in the Tamil Nadu market, impacting its growth in that region.
Q & A Highlights
Q: Can you share the percentage of LAP book customers who might have MFI loans?
A: There is no overlap. We conducted a scrub report for our live customers and found no overlap between MFI customers and our customer base. - P. Balaji, Managing Director
Q: Do you foresee any risk to near-term growth targets due to regulatory pressure on NBFCs?
A: We do not foresee any risk. The RBI's concerns are primarily with unsecured loans and high-interest rates, which do not apply to us as we focus on secured loans with reasonable interest rates. - Anandan M., Executive Chairman
Q: Why has there been a significant jump in provisioning this quarter?
A: The increase is due to our conservative accounting policy, where overdue accounts are technically written off. We also had a significant recovery in bad debts, which is reflected in our other income. - Anandan M., Executive Chairman
Q: What is your strategy regarding the floating versus fixed borrowing side, and how do you plan to handle potential rate cuts?
A: We aim to maintain a balance between floating and fixed borrowings. Our asset book is largely fixed, and we do not anticipate losing customers to refinancing due to competitive interest rates. - P. Balaji, Managing Director
Q: Can you provide a breakdown of private versus PSU bank borrowings?
A: Of our total bank borrowings, approximately 25-30% are from PSU banks, with the remainder from private sector banks. We will consider including this breakdown in future investor presentations. - Anandan M., Executive Chairman
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
