Conference Call with Satin Creditcare Network Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company Satin Creditcare Network announced Q3FY25 results Financial Highlights: Consistency in disbursement on a QoQ basis, leading to growth in AUM of 3% QoQ & 10% YoY PAT for Q3FY25 stood at Rs. 31 crore; reported 14 consecutive profitable quarters despite sector headwinds PAR reversal visible from Nov’24 onwards Net fresh PAR flow is seeing a reversal; significantly reduced from 1.61% in Oct’24 to 0.45% in Jan’25 PAR 1 for Satin vs Industry stood at 6.4% vs 13.9%; Satin’s performance better than the industry PAR 1 in top 5 states for Satin vs Industry at 5.6% vs 15.3%; strong client connect is helping us in key states Collection Efficiency of X bucket stood at 99.8% during Q3FY25 Capital Adequacy and Liquidity: Our capital base is strong with a capital adequacy ratio of 27.4% as on 31 st December’24 Book Value per share at Rs. 232 on a consolidated basis The Company continues to maintain a healthy balance sheet liquidity of Rs. 1,581 crore as on 31st December’24 and has undrawn sanctions worth Rs. 1,435 crore as on date. Borrowing Profile Total on-book borrowings stood at Rs. 7,829 crore as on 31st December’24 Debt-to-equity ratio as on 31st December’24 stood at 2.8x 62% of our borrowings are from banks, followed by overseas funds at 20%, NBFCs at 11% and DFIs at 7% The Company has a diversified and large lender base of 75 active lenders Asset Quality On-book Gross Non-Performing Assets stood at 3.9% amounting to Rs. 324 crore ~69% of portfolio across states has GNPA less than the national average of 3.9% We have sufficient on-book provisions amounting to Rs. 322 crore as on 31st December’24, which is 3.9% of on-book portfolio. Provisions required as per RBI is Rs. 136 crore Management Overlay on provisions of Rs. 16 crore; creating buffer for coming quarters HP Singh, Chairman cum Managing Director of Satin Creditcare Network, said, “Resilience and adaptability have always been at the core of our journey. Over the years, we have built a business that is not only strong but also agile and responsive to changing market dynamics. Our focus has always been on ensuring financial discipline, operational efficiency and a deep commitment to inclusion at large. Our performance in Q3 & 9M FY25 reflects this approach as we achieved AUM growth of 10% YoY to Rs. 10,778 crore, against our guided range of 8% to 10%, while maintaining a disciplined credit cost of 5.0%, which continues to be one of the best in the industry. Additionally, this quarter, we registered a profit of Rs. 31 crore, further reinforcing our track record of 14 consecutive profitable quarters. The third quarter also demonstrated improvements, with a steady reversal in delinquency trends starting from November 2024 and further strengthening in December 2024 and January 2025. This momentum has contributed to both AUM growth and enhanced portfolio quality. Our PAR 1 stood at 6.4%, outperforming industry benchmarks, while PAR 1 in our top five states also remained strong, supported by our deep client connections in key regions. Moreover, collection efficiency in the X bucket stood at an impressive 99.8%, reflecting our success in arresting fresh flows through a focused recovery strategy. As we look ahead, we are confident that the momentum will only improve as our recovery strategies gain traction. With a strong focus on operational excellence and capitalizing on emerging opportunities, with certain measures being undertaken, we are poised to deliver on a long-term sustainable basis, even better numbers, setting the stage for growth and long-term success.” Result PDF