Q4 2024 Aavas Financiers Ltd Earnings Call Transcript
Key Points
- AAVAS Financiers Ltd (BOM:541988) reported a robust growth of 22% year-over-year in Assets Under Management (AUM), reaching INR 173 billion.
- The company achieved an all-time low one-plus DPD (Days Past Due) at 3.12% and a Gross Non-Performing Assets (GNPA) ratio of 0.94%, indicating strong asset quality.
- Net profit for FY24 grew by 15% year-over-year, amounting to INR 4.91 billion.
- The company saw a significant increase in disbursements, with a 39% quarter-over-quarter and 20% year-over-year growth in Q4 FY24, reaching INR 18.93 billion.
- AAVAS Financiers Ltd opened 21 new branches during FY24, expanding its reach and enhancing its distribution network.
- The overall cost of borrowing increased by 12 basis points quarter-over-quarter to 8.07%, which could impact future profitability.
- Despite the robust growth, the company faces competitive pricing pressures, which may affect its spreads and margins.
- The incremental cost of borrowing for Q4 FY24 stood at 8.14%, indicating rising funding costs.
- The company has a high concentration of its loan book in Rajasthan, accounting for 35% of the total AUM, which could pose geographic risk.
- The employee costs saw a sharp increase during the quarter, partly due to long-term incentive plans, which could affect operating expenses.
Ladies and gentlemen, good day, and welcome to our Aavas Financiers Ltd Q4 FY24 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict.(Operator Instructions). Please note that this conference is being recorded.
I now hand the conference over to Mr. Rakesh Shinde, Head of Investor Relations at Aavas Financiers Ltd. Thank you and over to you, sir.
Good evening, everyone, I extend a very warm welcome to all our participants. Thank you for participating in the earnings call to discuss the performance of our company for Q4 and FY24. The results and the presentation are available on the stock exchanges, as well as on our company website. And I hope everyone had a chance to look at it.
With me today, I have our entire management team
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