Aavas Financiers Ltd.
Q2FY23 Quarterly Result Announced for Aavas Financiers Ltd.
Aavas Financiers announced Q2FY23 results:
- AUM of Rs. 125,437 million; Growth of 24% YoY
- PAT at Rs. 1963 million; Growth of 29% YoY
- Gross Stage 3 at 1.10% (includes 0.17% of upto 90 DPD assets)
- ROA at 3.42%; Increased by 17 bps YoY
- Sufficient Liquidity of Rs. 28,370 million
- Positive ALM & Strong Capital Base
Commenting on the performance Mr. Sushil Kumar Agarwal, CEO said:
“Dear All, Wishing you all a very happy Diwali and festivity & I hope everybody keep safety and health as priority.
At Aavas we believe in consistent growth with maintaining asset quality and I am happy to share that the Company has reported a robust growth of 64% in disbursements during H1 FY23 which stood at Rs. 22,403 Mn as compared to Rs. 13,641 Mn in the same period last year. This strong growth aided to an overall AUM growth of 24%, which stood at Rs. 125,437 Mn as on 30th September 2022.
Aavas intends to invest in Technology extensively which will help the Company to further reduce turnaround time, improve productivity, enhance customer experience, improve transparency in processes and support long term growth on sustainable basis. Our long term strategy of attaining digital transformation remain on track.
Over the years the Company has strengthened its branch network to 321 branches, adding 7 branches in H1 FY23. The Company’s enhanced collections efforts coupled with its technological prowess, led to an improvement in the company’s asset quality by 22 bps from 4.67% in Jun-22 to 4.45% in Sep-22. Additionally, the Company has categorized 0.17% of assets with DPD up to 90 as Gross Stage 3 following RBI’s notification dated 12th November 2021 to harmonize IRACP norms. As a result, the total Gross Stage 3 exposure as of Sep-22 stands at 1.10% as against 0.93% in the absence of any changes in IRACP norms by RBI.
We are happy to share that the company has received a rating upgrade from CARE Ratings. The Company’s rating has been upgraded to CARE AA (outlook stable) from CARE AA- (outlook positive) similar to the rating by ICRA, which endorses Company’s strong financial profile and exhibit ability of efficient capital management.
Lastly, during the quarter, the Company has raised Rs. 9,467 Mn at a blended rate of 7.55% which will not only augment growth capital requirements but also ensure adequate liquidity. As of 30th September, the Company has healthy balance sheet liquidity of Rs. 28,370 Mn which is in the form of cash & cash equivalents and un-availed sanctions."