Transcript of the Earnings Conference Call for the Quarter and Financial Year ended March 31, 2025.
Awaiting price reaction for this filing.
Aavas Financiers crossed the INR 200 bn AuM milestone, reaching INR 204 bn with 18% YoY growth. Q4FY25 saw record-high disbursements of INR 20 bn, while FY25 total disbursements grew 10% to INR 61.2 bn. Net profit for FY25 rose 17% YoY to INR 5.74 bn, with Q4FY25 profit up 8% YoY at INR 1.54 bn. Margins improved meaningfully, with spreads expanding 15 bps sequentially to 5.87% and NIMs at 8.11%. Asset quality remained strong with 1+DPD at 3.39% and GNPA at 1.08%, while opex-to-asset ratio improved by 26 bps to 3.32%. Management added 30 new branches and raised INR 61.8 bn at 8.42% during the year, maintaining CRAR of 44.5%.
Shareholders get a steady, well-capitalized growth story with improving margins and asset quality, though management's cautious underwriting stance (login-to-sanction ratio dropped from 42% to 38%) slightly tempered near-term growth. Management reaffirmed a 5%+ spread target and 20% AuM CAGR guidance, with a multi-year aspiration to reach INR 500 bn AuM in 5 years.