Dear Shareholders,
I am elated to present the Annual Report of your Company for the financial year
2023-24.
It was another transformative year for Aptus Value Housing Finance India Ltd (Aptus),
marked by robust growth, strategic expansions, and an unwavering commitment to sustainable
and inclusive finance. As we reflect on our achievements and prepare for future
opportunities, I would like to share insights into our strategic outlook, financial
performance, corporate governance, and Achievements . This year has been a journey of
reaching new horizons, delivering excellence in our services, and empowering our customers
and communities. Precisely, we are "Expanding, Excelling, Empowering".
Affordable Housing Finance in India
The need for affordable housing finance in India is rapidly increasing. With a
population of over 1.4 billion and growing, there is a pressing need for homes that people
can actually afford. Individuals from all walks of life are searching for a place to call
their own without breaking the bank. India's low and middle income segment is growing
rapidly and is expected to have one of the largest labor markets in the world by 2050,
with a population of over 1 billion people of working age. Further, the COVID-19 pandemic
has led to a trend of reverse migration, particularly in tier II and tier III cities.
This, along with greater spaces and lower construction costs, has increased the demand for
affordable housing in these cities.
At Aptus, we focus on meeting this demand by offering tailored financial products that
cater to the unique needs of low- and middle-income families. Our deep penetration into
Tier-3 and Tier-4 cities enables us to support the government's mission of 'Housing for
All,' ensuring that even the remote and underserved areas have access to affordable
housing finance.
The total allocation to the Housing and Urban Affairs Ministry for 2024-25 is '77,523
crore, up from '76,431 crore in 2023-24. The total allocation for the Pradhan Mantri Awas
Yojana (PMAY) is '80,671 crore, out of which '54,500 crore is earmarked for PMAY (Rural).
These substantial allocations highlight the government's commitment to enhancing housing
infrastructure across the country, particularly in rural regions. At Aptus, we align our
strategies with these national priorities, ensuring that our efforts contribute
significantly to the broader goal of affordable housing.
Strategy
Looking ahead, we are poised for continued growth and innovation. Our strategic
priorities include expanding our geographic footprint in all existing markets, focusing on
deeper penetration in the markets we ventured in recent times such as Odisha and
Maharashtra. We are committed to strengthening cyber security to protect data, maintain
trust and reputation and ensure business continuity. We have been leveraging technology to
automate our operations, using AI/ML-driven credit scoring models and digital platforms
for customer engagement. Additionally, we plan to strengthen our analytics capabilities to
drive better decision-making and improve customer experiences.
We recognise the importance of sustainable practices and are dedicated to incorporating
them into our business model. Our initiatives aim to reduce our environmental impact,
promote energy efficiency, and support community development.
By fostering a culture of sustainability, we contribute to a healthier planet and
enhance our long-term viability and competitiveness.
Performance
The financial year 2023-24 has been remarkable for Aptus. Despite a challenging
macroeconomic environment, we have demonstrated strong economic performance. Our Assets
Under Management (AUM) grew by 29% year-on-year to '8,722 crores, reflecting our robust
market presence and customer trust. We achieved a 31% increase in disbursements, amounting
to '3,127 crores.
Our Net Interest Margin (NIM) remained healthy at 13.45%, and we reported a Profit
After Tax (PAT) of '612 crores, a significant 22% increase from the previous year. Our
Return on Assets (RoA) and Return on
Equity (RoE) stood at 8.00% and 17.25%, respectively, underscoring our operational
efficiency and financial resilience. The decision to declare dividend of Rs. 4.50 per
share to the shareholders was driven by the strong and consistent financial performance of
your Company. We have maintained a strong capital adequacy ratio of 73.03%, ensuring a
solid financial foundation for future growth.
Governance in Aptus
At Aptus, we are unwavering in our commitment to upholding the highest standards of
corporate governance and compliance.
Our governance framework, which is designed to ensure transparency, accountability, and
integrity in all our operations, is further strengthened by a diverse and experienced
Board of Directors. Several regulatory and supervisory measures were implemented by the
Reserve bank of India in line with global best practices towards further strengthening of
governance and risk management practices in the recent times in the areas of fair lending
practices, transparency in disclosure of terms and conditions of service, and the like,
which highlights the importance given to governance by the regulator. Over the years, we
have fortified our governance mechanisms by imbibing a culture of compliance, implementing
continuous, stringent compliance measures, enhancing our internal controls, and fostering
a culture of ethical business practices.
We are focused at ensuring that Aptus remains a trusted and responsible leader in the
affordable housing finance sector.
Achievements
Since our inception in 2010,
Aptus has been dedicated to providing affordable housing finance to underserved
segments, particularly in Tier-3 and Tier- 4 cities, making a remarkable change in the
lives of our customers. Over the years, we have built a strong foundation based on trust,
customer- centricity, and innovation.
Our legacy is reflected in our consistent growth, industry recognition, and our
positive impact on the communities we serve. We are proud of our journey and our
milestones, including being awarded 'India's Leading Housing Finance NBFC (Mid)' by Dun
& Bradstreet at the BFSI & FinTech Awards 2023 and best NBFC for 2022-23 by
Financial Express. Our success is a testament to our commitment to making homeownership
accessible and affordable.
Before concluding, I extend a heartfelt thanks to our shareholders, Board of Directors,
customers, employees, regulators and partners for their unwavering support and trust. We
will continue to drive sustainable growth and create long-term value for all our
stakeholders. We remain committed to providing affordable housing finance and supporting
the dreams of millions of aspiring homeowners. We wish you continue supporting us while
entrusting us with your faith.
Sincerely,
M. ANANDAN
Executive Chairman