Conference Call with Satin Creditcare Network Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company Satin Creditcare Network announced H1FY25 & Q2FY25 results Portfolio well within the SROs guidelines & guardrails. Only 1% of clients exceeded numbers of lenders by 4. Only 0.04% clients had loan outstanding exceeding Rs 2 Lakh. PAR 90 for top 4 states that contribute to ~60% of on-book portfolio is 2.9%; which is below the national average. Raised Rs 3,852 crore during H1FY25 at group level; maintaining healthy liquidity. More than 50% of customers have received a benefit of reduced rate of interest. Received AUA/KUA license from RBI Digital; enabling seamless e-KYC. Stable and competent management team; more than 8 years of vintage of core team in the company. Capital Adequacy and Liquidity: Our capital base is strong with a capital adequacy ratio of 28.8% as on 30th September’24. Book Value per share at Rs 230 on a consolidated basis. The Company continues to maintain a healthy balance sheet liquidity of Rs 1,590 crore and has undrawn sanctions worth Rs 1,539 crore as on 30 th September’24. Borrowing Profile: Total on-book borrowings stood at Rs 7,653 crore as on 30th September’24. Debt-to-equity ratio as on 30 th September’24 stood at 2.7x. 61% of our borrowings are from banks, followed by overseas funds at 20%, NBFCs at 12% and DFIs at 7%. The Company has a diversified and large lender base of 76 active lendeRs Asset Quality: ???????On-book Gross Non-Performing Assets stood at 3.5% amounting to Rs 286 crore. We have sufficient on-book provisions amounting to Rs 284 crore as on 30th September 2024, which is 3.5% of on-book portfolio. Provisions required as per RBI is Rs 167 crore. Temporary rise in delinquencies across a few geographies, influenced by various challenges like heatwaves, floods, general elections and other on ground external factoRs During H1 FY25, collection against write-offs were Rs 11 crore. Collection efficiency for H1 FY25 stood at 96.4%. HP Singh, Chairman cum Managing Director of Satin Creditcare Network, said: “Looking at the current uncertain time, our approach prioritizes quality over quantity, ensuring a sustainable trajectory. With our stringent lending standards, robust underwriting practices and adherence to RBI guidelines & SROs guardrails, we have effectively navigated the hurdles posed by notable disruptions in the unsecured lending, allowing us to deliver a profitable quarter. Despite these dynamics, our Gross Loan Portfolio grew by 16% YoY, reaching Rs 11,749 crore. Mindful of the existing industry landscape and the challenges that have emerged in recent months, we have revised our guidance for FY25 to reflect a more measured outlook. We now anticipate an annual AUM growth of approximately 8% to 10% and a credit cost in the range of 4.5% - 5.0%. As we look forward, we remain confident in our strategies and continue to assess the evolving situation on the ground, ensuring that we remain agile, resilient and prepared for future opportunities. Result PDF