Q2 2025 Aavas Financiers Ltd Earnings Call Transcript
Key Points
- AAVAS Financiers Ltd (BOM:541988) reported a 20% year-over-year growth in Assets Under Management (AUM), reaching INR 184 billion.
- The company achieved a net profit of INR 1.48 billion for Q2 FY25, marking a 22% year-over-year increase.
- Disbursements for Q2 FY25 amounted to INR 12.94 billion, contributing to an 8% year-over-year growth in H1 FY25.
- The company successfully raised INR 6.3 billion through Non-Convertible Debentures (NCD) from IFC, the largest debt fund raised by the company to date.
- AAVAS Financiers Ltd (BOM:541988) maintained strong asset quality with 1+DPD below 4% and Gross Non-Performing Assets (GNPA) at 1.08%.
- The company experienced a sequential drop in spread by 11 basis points due to increased cost of funds and yield compression.
- Disbursement growth was affected by an extended monsoon and regulatory changes, leading to lower fresh disbursements.
- Operating expenses remain a concern, although there was a slight improvement in the OpEx to asset ratio.
- The company's spread fell below 5% for the first time, attributed to rising borrowing costs and yield compression.
- There was a 30 basis point increase in 1+DPD, attributed to seasonal factors like extended monsoon and festive season.
Ladies and gentlemen, good day, and welcome to Aavas Financial's Limited Q2 FY25 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 the guarantees of future performance, involve risks and uncertainties that are difficult to predict. (Operator Instructions)
Please note that this conference call is being recorded.
I now hand the conference over to Mr. Rakesh Shinde, Head of Investor Relations at Aavas Financial Limited. Thank you, and over to you, sir.
Thank you. Good evening, everyone. I extend a very warm welcome to all participants. Thank you for participating in the earnings call to discuss the performance of our company for Q2 and H1 FY25. 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 an entire management team of
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