Aptus Value Housing Finance India (APTUS) Q4 19/20 earnings summary

Executive summary

• FY20 delivered strong growth despite a slowing economy, sector funding stress and COVID-19 disruption; AUM rose 42% YoY to ₹3,183 crore and active customers exceeded 50,200.

• Focus remained on underserved lower- and middle-income families, self-employed borrowers and semi-urban and rural markets; 80% of customers were in the LMI and self-employed categories.

Financial highlights

• Consolidated total income rose 55% YoY to ₹523.13 crore; profit before tax was ₹247.29 crore, up 62%, and reported PAT increased 88% to ₹211.01 crore.

• Adjusted PAT, excluding the one-time deferred tax liability reversal, was ₹191 crore, up 71% YoY; the reversal contributed about ₹20 crore to reported PAT.

• Consolidated revenue from operations reached ₹479.56 crore, versus ₹318.46 crore in FY19; finance costs were ₹184.55 crore and impairment expense was ₹2.84 crore.

• Disbursements increased 17% YoY to ₹1,280 crore, while sanctions rose to ₹1,492 crore from ₹1,216 crore; disbursements benefited more than 15,000 families.

Outlook and guidance

• Management expects COVID-19 to weigh on business activity and collections for a considerable time; underwriting of new loans will be more cautious, particularly for self-employed, cash-salaried and small-business borrowers.

• Long-term housing-finance prospects remain supported by low mortgage penetration and underserved demand; affordable housing credit was forecast to grow 20–25%, versus estimated overall housing-credit growth of 9–12%.

• Management cited a focus on core customers, risk controls and liquidity to support future profitable growth as operating conditions improve.