Aptus Value Housing Finance’s H1 FY22 Profit after tax (PAT) grew by 30 % Y-o-Y

Aptus Value Housing Finance’s H1 FY22 Profit after tax (PAT) grew by 30 % Y-o-Y

 

v AUM of Rs. 4,481 crores; growth of 27% Y-o-Y

v PAT at Rs. 159 crores; growth of 30% Y-o-Y

v ROA at 7.43% - increase by 0.29 bps Y-o-Y

v Gross NPA at 0.81% - increased by 0.14 bps Y-o-Y

v Sufficient on balance sheet liquidity of Rs.736 crores

v Positive ALM and Strong Capital Base

 

 

Chennai: October 29^th, 2021: Aptus Value Housing Finance India Ltd, a leading Housing Finance company in South India has declared its financial results for the quarter and half year ended on 30^th September, 2021.

 

Key Performance Metrics for H1 FY22

 

Particulars (Rs. Cr)	H1 FY22	H1 FY21	Y-o-Y
Disbursements	668	489	37%
AUM	4,481	3,531	27%
PAT	159	122	30%
Gross NPA (%)	0.81	0.67	Increase by 0.14 bps
ROA (%)	7.43	7.30	Increase by 0.13 bps

 

Performance Highlights

 

·         Return on Assets (ROA) is at 7.43%

·         Return on Equity (ROE) is at 14.09%

·         Networth of over Rs.2,700 crores

·         Diversified borrowings with 51% from NHB and DFIs like IFC and large financial institutions, 49% from banks

·         Network of 198 branches as on 30^th September 2021

 

Commenting on the results, Mr. M Anandan, Chairman & Managing Director, Aptus Value Housing Finance India Limited, said, “While business activity was impacted in Q1 FY 22 due to the second wave of Corona, things returned back to normalcy towards the  end of Q1 and more so in the Q2 FY 22. This is reflected in our overall performance be it disbursements and collections which are crucial to any Housing Finance Company. In Q2 FY 22, we were almost at pre covid levels both in terms of disbursements and collection efficiencies.  During H1 FY22, we disbursed Rs. 668 crores registering a growth of 37% year on year. We have built a strong branch network of 198 branches to deliver quality service to our customers. The Company is well capitalised with a net worth of over Rs.2700 crores. As on September 30, 2021, we have maintained a sufficient on balance sheet liquidity of Rs. 736 crores in the form of cash and cash equivalents.

 

We continued to grow consistently and delivered an AUM growth of 27% Year on Year. PAT has grown at 30% and our ROA was at 7.43% which is one of the best in the Industry. Gross NPAs were at 0.81% as on 30 Sep 2021.

 

Further in the month of August 2021, we became a public listed company and the shares are listed on both NSE and BSE.

 

The Company expects a better Q3 which coincides with the festival season and hopes to grow the business volumes in the quarters ahead. 

Profitable Fintech, Fino Payments Bank’s IPO sees positive response from retail investors;

Profitable Fintech, Fino Payments Bank’s IPO sees positive response from retail investors;

Issue subscribed 51% on Day 1

Mumbai, October 29th, 2021: Fino Payments Bank Limited (“Company”); one of the growing fintech company offering a diverse range of financial products and services that are primarily digital and have a payments focus, received bids of 58,13,975 shares against the offered 1,14,64,664 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 2.73 times and the Non-Institutional Investor category was subscribed 0.05 times and Employee Reserved category was subscribed 0.25 times, while the Qualified Institutional Buyer category didn’t see any response on Day 1.

The Offer comprises of a fresh issuance of equity shares aggregating up to Rs 300 Cr (“Fresh Issue”) and an offer for sale of up to 15,602,999 equity shares by selling shareholders. The Company proposes to utilize the net proceeds from the fresh issue towards augmenting the bank’s tier-1 capital base to meet its future capital requirements.

The Company raised Rs. 538 crore from 29 anchor investors. As per the exchange, the investors includes Fidelity, HSBC Global, Pinebridge, Birla Mutual Fund, Motilal Oswal, TATA Mutual Fund, SBI Life, Invesco, BNP Paribas and Societe Generale.

Axis Capital Ltd, CLSA India Pvt Ltd, ICICI Securities Ltd, and Nomura Financial Advisory Services Pvt Ltd are the Book Running Lead Managers to the Offer

Company Information

Fino Payments Bank is a fully owned subsidiary of Fino Paytech which had last raised funds in 2016. Fino Paytech is backed by marquee investors like Bharat Petroleum, ICICI group, Blackstone, IFC, Intel and LIC among others. Frugal innovation is the key that has given the fintech a leadership position at the middle of the pyramid that primarily constitutes emerging India customers. It enjoyed a 55% market share in micro-ATMs in FY21.

 (Subscription table below)

Paytm’s revenue from operations up by 62% Y-o-Y, contribution margin positive up by 85% Y-o-Y for Q1FY22 — financial services play major role

 Paytm’s Q1 FY22 Update

 

Paytm’s revenue from operations up by 62% Y-o-Y, contribution margin positive up by 85% Y-o-Y for Q1FY22 — financial services play major role

 

Paytm’s financial services bet takes off — revenue from operations up by 62% Y-o-Y, contribution margin positive up by 85% Y-o-Y for Q1FY22

 

India’s leading digital payments and financial services platform Paytm has disclosed its financials for three months ended June 2021, as the company prepares for its mega IPO. Paytm has filed its Red Herring Prospectus today ahead of its mega IPO. Paytm is headed for a ₹18,300 crore IPO — the largest market debut in India yet. It had hiked its IPO issue size from the earlier ₹16,600 crore as it received increased investor demand.

 

For the three months ended June 2021, Paytm has seen a huge uptick in its revenues driven by its payments and financial services offerings, as per the company’s RHP. The company’s revenue from operations is up by 62% to ₹8,908 million in Q1FY22, from ₹5,512 million in Q1FY21.The revenue is driven by payment and financial services offerings of the company. For Q1FY22, the company’s payments and financial services revenue alone stood at ₹6,894 million contributing to 77% of its total revenue.

 

Interestingly, Paytm’s contribution margin also rose significantly to 27.4% in Q1FY22, up from 14.9% in Q1FY21. This indicates that the company is on the path to profitability. Media reports had earlier quoted sources to say that the company is looking to turn profitable in 18-22 months from now.

 

Paytm’s losses stood at ₹3,819 million for the three months ended June 2021. The marketing and promotional expenses of the company went up to ₹​​1,377 million for Q1FY22, while the company’s employee benefits expense also grew to ₹3,507 million in Q1FY22 from ₹2,138 million in Q1FY21.

As per the company’s RHP, Paytm’s total user base has increased to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021.

 

The company’s lending vertical has taken off as the company disbursed 1.4 million loans in Q1FY22 and 2.8 million loans in Q2FY22, as per the RHP.

 

It also has a stronghold in the offline merchants space through its Paytm devices. The company had 947K devices deployed as of Jun’21 and 1,280K devices deployed as of Sep’21. Paytm offers digital payment and financial services, commerce and cloud services to Indians. It has built a multi-stack payment architecture through the payment options offered by the company — Paytm Wallet, Paytm UPI, Paytm Postpaid (Buy Now, Pay Later), credit cards/debit cards, Paytm PoS, All-in-One QR code, Soundbox among others.

10 things to watch out for in Paytm’s RHP as the company heads closer to its mega IPO

 

Paytm, India’s leading digital ecosystem for consumers and merchants, is headed for a public market debut — a much awaited one as it is going to be the country’s largest IPO. On 22nd October, the company received the approval from SEBI for its IPO and it has now filed the Red Herring Prospectus.

 

Here are the ten things that stand out in the company’s RHP

 

1. Issue size increased: Paytm is headed for a ₹18,300 crore IPO — the largest market debut in India yet. It had hiked its IPO issue size from the earlier ₹16,600 crore as it received increased investor demand.

 

2. Paytm adoption goes up: Paytm, which has the country’s largest internet ecosystem as per Redseer, has seen its user base grow in the first three months of FY22. As per the company’s RHP, Paytm’s total user base has increased to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021. This is reflected in transacting users too - with the monthly transacting users going up to 57.4 mn, as of September 30, 2021 (a 33% YoY increase).

 

3. Big jump in revenue: For the three months ended June 2021, Paytm has seen a huge uptick in its revenues driven by its payments and financial services offerings. The company’s revenue is up by 46% to ₹9,480 million in Q1FY22, from ₹6,494 million in Q1FY21. Paytm’s losses stood at ₹3,819 million for the three months ended June 2021.

 

4. Payment and Financial services contribute to almost 80% of the revenue: Paytm’s bet in the financial services space has taken off as the payments and financial services vertical contributes to almost 80% of the company’s revenue.  As per the company’s RHP, for Q1FY22, the company’s payments and financial services revenue alone stood at ₹6,894 million.

 

5. Contribution margin goes up: Paytm’s contribution margin also rose significantly to 27.4% in Q1FY22, up from 14.9% in Q1FY21.
   
   
   
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6. Bullish on GMV: Paytm GMV has increased from ₹697 billion in the three months ended June 30, 2020 to ₹1,469 billion in the three months ended June 30, 2021. The take rate, defined as ratio of the total revenue from operations to GMV, for the first quarter of FY 2022 was 0.61%, marginally lower compared to the previous quarter as COVID-19 affected the category mix of the company’s offline merchants (particularly with respect to offline devices subscriptions and MDR revenues) and commerce merchants.

 

7. Lending goes big: Paytm has been betting big on its lending vertical. And as per its RHP, it has taken off and how. The company in its RHP stated that in Q2FY22 it disbursed 2.84 million loans.
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8. Merchants drive big numbers: Paytm merchant transactions have increased from 3.8 billion in FY 2019 to 5.2 billion in FY 2020, and to 5.9 billion in FY 2021, and from 1.0 billion in three months ended June 30, 2020 to 2.3 billion in the three months ended June 30, 2021. Revenue from payment services to merchants went up ₹1979 million in Q1FY21 to ₹3340 million in Q1FY22 

 

9. On a hiring spree: Paytm has grown its employee base as at the end of june 30, 2021 the company’s total on roll employee count stood at 10,266.

 

10. Expansion into international markets: While Paytm continues to innovate and provide better products and services to its consumers and merchants in India, the company believes there is a large opportunity to leverage its technology infrastructure and expand to international markets. In 2017, it piloted the bill payment services in Canada and in 2018, it partnered with Softbank Corp. and Yahoo Japan Corporation to launch PayPay, a leading digital payments and financial services company in Japan. Paytm continues to explore international opportunities, especially in the developed markets, where it can

either launch its merchant services, or collaborate with partners to launch consumer facing platforms.

 

Home First Finance Company India Limited

 

Home First Finance Company India Limited

Strong disbursements at INR 515 Crs (highest ever), Gross Stage 3 improved by 20 bps AUM of INR 4,617 Crs, growth of 23.8% on y-o-y basis

New Independent Directors appointed to guide company’s future expansion

Q2 FY22 Press Release: 25th October 2021, Mumbai

HomeFirst is a technology driven affordable housing finance company that targets first time buyers in low and middle - income groups. The company was listed in Feb'21 on Bombay Stock Exchange & National Stock Exchange of India.

 

Particulars	Q2FY22	Q2FY21	y-o-y	Q1FY22	q-o-q
AUM (INR Crs)^	4617	3730	+23.8%	4294	+7.5%
Disbursement (INR Crs)	515	243	+111.9%	305	+69.1%
Total Income (INR Crs)	146	109	+34.3%	142	+3.1%
PAT (INR Crs)	45	14	+213.0%	35	+27.8%
Spread (%)*	5.6%	4.8%	+80 bps	5.5%	+10 bps
ROA (%)	3.9%	1.5%	+240 bps	3.1%	+80 bps
Gross Stage 3 (%)^	1.7%	0.9%	+80 bps	1.9%	-20 bps
Cost to Income (%)	35.2%	43.9%	-870 bps	31.9%	+330 bps

*IGAAP basis. ^ Data as on period end.

Investors& Analyst can download the excel version of operational &financial numbers from our website link.

Commenting on the performance Mr. Manoj Viswanathan, MD & CEO said,

Our Q2 FY22 performance was better than our expectation, with disbursals crossing INR 500 Crs for the first time. We recorded an AUM growth of 23.8% y-o-y and a sequential growth in PAT of 27.8%. The government’s focus on vaccination has been a strong counter to the spread of the virus and this has led to positive momentum in businesses across sectors.

 

We expect the upward trend to continue as the opportunity remains large; with low interest rates and muted home prices, driving strong business growth. Affordable Housing Finance sector remains one of the most resilient segments, validated through better collection efficiencies and asset quality compared to other segments. Besides, the inherent resilience of this sector, our focus on the salaried segment in industrialized and urbanized states helped us stay on course through these difficult times.

 

Digital adoption has also accelerated during Covid times. Usage of the customer app for various activities has increased. 72% of our customers are registered on our app as on Sep'21 compared to 67% in Jun’21. Payments received via the app have gone up by 118% y-o-y.

 

Bounce rates improved in Oct'21 to 15.0% (Q2 FY22 – 16.5%, Q1 FY22 – 18.3%). Our Gross Stage 3 declined in-line with expectation by around 20 bps to 1.7%. We also supported 106 customers (0.3% of POS) with restructuring as they were impacted by Covid.

 

Two of the Independent Directors of the company who have steered Home First since over the last 10 years have decided to resign from the Board. Ms. Sujatha Venkatramanan has resigned from the Board due to increasing professional commitments and Mr. Sakti Prasad Ghosh has decided to step down due to his advanced age and a desire to reduce his overall responsibilities.

 

The Board of Directors, in line with the succession policy of the Company, based on the recommendation of the Nomination and Remuneration Committee and subject to shareholder approval, has approved the proposal for the appointment of Ms. Geeta Dutta Goel and Mr. Anuj Srivastava as Additional Directors on the Board of the Company to function as Non-Executive Independent Directors; w.e.f. 1st Nov’21.

 

Ms. Goel’s vast experience and expertise in the financial service industry will further enrich the Board. Her insights in philanthropy and impact investing will guide the Company towards better social commitment to all stakeholders. Mr. Srivastava’s rich experience in the consumer-internet space will benefit HomeFirst in its journey to becoming a large mortgage fintech player.

 

Considering the new phase of growth and expansion, the company proposes to augment the management team with the appointment of a Chief Technology Officer (CTO) & Chief Risk Officer (CRO). Mr. Dharmvir Singh and Mr. Ashishkumar Darji will be joining the management team as CTO and CRO respectively. These appointments underline our focus and commitment to two critical factors that have contributed to the company’s success in affordable housing finance viz. technology and risk management. With these appointments, we will further strengthen our approach to risk and enhance our tech-led focus in the affordable housing finance segment.

 

We remain committed to our strong tech-led operating model in the housing finance space and continue to invest in building a trusted brand that delivers superior service to customers with industry leading turnaround times.”

Key Highlights for Q2 FY22:

 

Asset under Management (AUM):

Ÿ  INR 4,617 Crs, growth of 23.8% over Q2 FY21.

Ÿ  Sharp focus on housing loans that contribute 92% of AUM and EWS / LIG category that forms ~77%

of the customer base.

 

Distribution:

Ÿ  As on Sept'21, the Company has 72 branches with presence in 12 States and 1 Union Territory.

Ÿ  Business commenced in 14 new branch locations. In addition, 10 new digital branches have been launched taking the total number of touchpoints to 161.

 

Disbursements:

Ÿ  Disbursements of INR 515 Crs in Q2 FY22, y-o-y growth of 111.9%.

 

Asset Quality:

Ÿ  Bounce rates have improved to 15.0% in Oct’21 and 16.5% in Q2FY22 from 18.3% in Q1 FY22.

Ÿ  1+ DPD improved from 8.9% to 7.6% on q-o-q basis.

Ÿ  30+ DPD improved from 5.8% to 5.2% on q-o-q basis.

Ÿ  Gross Stage 3 is at 1.7% and Net Stage 3 is at 1.2%

Ÿ  0.3% of POS restructured in Q2 FY22. Total Restructuring 2.0 at 0.8% as at Sep’21.

 

Provisions:

Ÿ  ECL provision as on Sep'21 is INR 49.6 Crs; resulting in total provision to loans outstanding ratio at 1.3%; and the Stage 3 provision coverage ratio is at 77.4%.

 

Borrowings:

Ÿ  Total borrowings including debt securities are at INR 3,075 Crs as on Sep’21 up from INR 2,637 Crs as on Sep'20. The company continues to carry a liquidity of INR 1,400 Crs as on Sep’21.

Ÿ  Cost of borrowings reduced further from 7.2% in Q1 FY22 to 7.1% in Q2 FY22. It is lower by 120 bps

compared to Q2 FY21 which stood at 8.3%.

 

Spread:

Ÿ  Spread on loans stood at 5.6% in Q2 FY22 compared to 5.5% in Q1 FY22 and 4.8% in Q2 FY21.

 

Capital Adequacy:

Ÿ  Total CRAR at 56.4%. Tier I capital stands at 55.2% as on Sep’21.

Ÿ  Networth as on Sep’21 is at INR 1463 Crs vis-à-vis INR. 988 Crs as on Sep’20.

 

Financial Performance:

Ÿ  Q2 FY22 Total Income at INR 146 Crs; y-o-y growth of 34% from INR 109 Crs in Q2 FY21, sequential

increase of 3.1% over Q1 FY22 of INR 142 Crs.

Ÿ  Q2 FY22 PAT at INR 45 Crs, sequentially up by 27.8% from INR 35 Crs in Q1 FY22.