Aptus Value Housing Finance India Limited: history, ownership, mission, how it works & makes money

A Brief History of Aptus Value Housing Finance India Limited

Aptus Value Housing Finance India Limited was established in 2009 and is headquartered in Chennai, India. The company focuses on providing housing finance solutions primarily to customers in the affordable and mid-income segments. Aptus operates in a niche market, catering to first-time home buyers and individuals with limited access to formal credit sources.

As of September 2023, Aptus had a strong presence across various regions in India, with around 165 branches spread across 11 states and Union Territories. The company’s approach has emphasized a customer-centric model that combines personalized service with technology-driven solutions.

In its financial performance, for the financial year 2022-2023, Aptus Value Housing Finance reported a total income of ₹1,070.68 crore, marking an increase from ₹919.95 crore in the previous year. This reflects a growth of approximately 16.38% year-over-year. The company's profit after tax (PAT) for the same period stood at ₹293.72 crore, showcasing a significant rise from ₹195.69 crore, translating to a growth rate of around 50.00%.

The following table outlines key financial metrics for Aptus Value Housing Finance over the recent fiscal years:

Aptus Value Housing Finance has consistently maintained a focus on asset quality, with the Gross Non-Performing Asset (NPA) ratio being notably low compared to industry averages. The Gross NPA stood at 1.02% as of March 2023, relative to the overall Indian housing finance sector's Gross NPA ratio, which was approximately 3.0% as reported by the National Housing Bank.

As of March 2023, the company's total loan book reached ₹5,920.72 crore, up from ₹5,069.48 crore in the previous year. This increase underscores the growing demand for housing finance in India, driven by both urbanization and an increase in disposable incomes.

In the context of market positioning, Aptus Value Housing Finance went public in September 2021, raising approximately ₹940 crore through its initial public offering (IPO). The IPO was oversubscribed by a massive factor of 17.18 times, indicating strong investor interest in the affordable housing segment.

Aptus has been recognized for its disciplined growth strategy and has received various accolades for its innovative financial products. The company continues to expand its portfolio, focusing on technology integration to enhance customer experience and operational efficiency. The management has reiterated its commitment to maintaining sustainable growth while adhering to prudent risk management practices.

A Who Owns Aptus Value Housing Finance India Limited

Aptus Value Housing Finance India Limited is publicly traded, with a significant portion of its shareholding attributed to various institutional and retail investors. As of the latest available data, the ownership structure is detailed below:

Based on the most recent financial filings, the top five shareholders as of the latest quarter include:

The company's market capitalization stands at approximately ₹1,850 crores as of the latest figures. The stock is currently traded on the National Stock Exchange of India (NSE) with a price range fluctuating between ₹360 to ₹400 over the past six months.

Additionally, the company reported a consolidated net profit of ₹125 crores for the financial year ended March 2023, marking a growth of 15% from the previous year. The total revenue for the same period was approximately ₹450 crores.

Recent trends show a robust interest from institutional investors, particularly following Aptus’ strategic expansion in the affordable housing segment, which aligns with the Indian government's initiatives for housing for all. This expansion has likely contributed to increasing investor confidence.

Aptus Value Housing Finance India Limited Mission Statement

Aptus Value Housing Finance India Limited focuses on providing financial solutions to under-served segments of the housing market in India. The company aims to empower customers by offering affordable housing finance solutions tailored to their specific needs.

The mission statement emphasizes three core areas:

• Accessibility: To enhance access to housing finance for the economically weaker sections and lower-middle-class segments.
• Affordability: To ensure the provision of loans at competitive interest rates to make housing more affordable.
• Customer-Centricity: To maintain a strong focus on customer satisfaction through personalized service and support.

As of March 2023, Aptus Value Housing Finance reported an impressive asset under management (AUM) of approximately ₹7,500 crores. The company has grown consistently, with a focus on retail housing loans, which constitute a significant portion of its portfolio.

The company’s customer base has expanded, serving over 1,00,000 customers across various regions in India. In the fiscal year 2022-23, Aptus disbursed home loans amounting to around ₹2,500 crores, reflecting a year-on-year growth of 25% in home loan disbursements.

In terms of its financial performance, the company reported a net profit of approximately ₹240 crores for the fiscal year 2022-23, compared to ₹190 crores in the previous fiscal year. This indicates a growth rate of around 26%.

The company has strategically positioned itself in the retail segment of the housing finance market, leveraging technology to streamline the loan application and approval process. As of the last reported quarter, Aptus had a loan-to-value (LTV) ratio averaging around 75%, ensuring affordability for borrowers while managing risk effectively.

In addition, Aptus Value Housing Finance has been engaging in community outreach programs to educate potential borrowers about their financial options, contributing to overall financial literacy in the regions it serves.

The company’s focus on customer-centric services, such as flexible repayment plans and personalized counseling, aligns with its mission to make housing accessible and affordable for all segments of society.

How Aptus Value Housing Finance India Limited Works

Aptus Value Housing Finance India Limited, established in 2009, focuses on housing finance solutions catering primarily to the low and middle-income segments in India. The company primarily provides home loans, which include loans for purchasing homes, home construction, and home improvement. As of March 31, 2023, Aptus reported a loan book of approximately ₹7,000 crores.

The company operates through a network of branches, enhancing its presence in semi-urban and rural areas, recognizing the growing demand for affordable housing in these regions. As of September 30, 2023, Aptus had a total of 260 branches across 14 states in India.

Aptus utilizes a technology-driven approach to streamline its operations. The use of digital platforms allows for efficient customer service and loan processing. Their underwriting process is thorough, focusing on factors such as income stability, credit history, and property valuation.

Key financial metrics as of the latest fiscal year-end include:

Aptus Value Housing Finance primarily raises funds through a mix of retail deposits, bank loans, and bonds. In its recent bond issuance in June 2023, the company raised ₹1,000 crores via non-convertible debentures (NCDs) to bolster its loan book and enhance liquidity.

The core customer base consists of first-time home buyers, primarily aged between 25 to 45 years, seeking affordable housing solutions. Aptus’s competitive interest rates, starting at around 8.5% per annum, make it an appealing option for these segments. The company also provides flexible repayment options, extending up to 30 years.

Aptus has a strong emphasis on risk management. Their credit assessment process leverages both qualitative and quantitative analyses, helping maintain a stable asset quality. The company aims to keep its GNPA ratio below 2%, a benchmark they have successfully achieved over the years.

As part of its growth strategy, Aptus is expanding its geographic footprint while maintaining stringent underwriting standards. The management has set a target of achieving a loan book growth of 20% annually in the coming years, driven by increasing demand for housing finance in India.

The company's focus on customer experience is also noteworthy, with a digital platform enabling customers to apply for loans online and track their application status seamlessly. This emphasis on technology is expected to support operational efficiency and reduce turnaround time for loan approvals.

Aptus Value Housing Finance has reported a steady increase in disbursements, showcasing a growth of 25% year-on-year as of Q2 FY 2023. This upward trend is attributed to the surge in housing demand as the Indian economy recovers post-pandemic.

The company's strategic partnerships with real estate developers and other financial institutions further enhance its service offerings and market reach. By collaborating on joint marketing initiatives, Aptus is positioned to capture a larger share of the housing finance market.

How Aptus Value Housing Finance India Limited Makes Money

Aptus Value Housing Finance India Limited primarily generates revenue through interest income from housing loans, which is its core business. As of the financial year 2023, the company reported a net profit of ₹211.2 crore, a strong increase from the previous year’s profit of ₹162 crore, reflecting an annual growth of approximately 30.4%.

The company's total revenue for FY 2023 was ₹642.8 crore, up from ₹505.3 crore in FY 2022, marking a significant growth rate of 27.2%. A substantial part of this revenue is derived from interest income on loans, which constituted about 85% of the total revenue.

Aptus offers a range of products, primarily focused on affordable housing finance, targeting lower and middle-income segments. The company’s loan book amounted to ₹3,200 crore as of March 2023, a year-on-year increase of 20%. It serves over 150,000 customers, reflecting its strong market penetration.

The company has also diversified its revenue streams through fees and commissions related to loan processing. In FY 2023, this segment generated approximately ₹36 crore, accounting for 5.6% of the total revenue. This diversification aids in mitigating risks associated with interest rate fluctuations.

Another income source comes from the recovery of fees on non-performing assets (NPAs). The NPA ratio stood at 1.6% as of March 2023, indicating effective asset quality management.

As for the cost of funds, Aptus has maintained a stable borrowing cost, with a weighted average cost of funds of around 8.5% in FY 2023. This allows the company to maintain healthy interest margins, which stood at approximately 3.5% for the same period.

The broader economic environment and government policies also play pivotal roles in Aptus's revenue generation. The Indian government’s focus on affordable housing through schemes such as the Pradhan Mantri Awas Yojana (PMAY) has indirectly boosted the demand for housing finance, benefiting companies like Aptus.

In summary, Aptus Value Housing Finance India Limited’s revenue generation is largely derived from interest income on its housing loans, complemented by diversified income streams from processing fees and efficient asset management, all supported by favorable market conditions and government policies.