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
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
Finance company Satin Creditcare Network announced Q1FY25 results: Navigated seasonally moderate quarter coupled with extreme heat waves and general elections Forayed into one new state i.e. Nagaland marking our presence in 27 States and UTs Consistent new client addition led to 22.2% YoY and 2.2% QoQ growth in the customer base Continuous improvement in operational efficiencies Loan Account per Loan Officer at 465 (up by 6.4% YoY and 2.0% QoQ) Strong Center Efficiency at 12.8 as on Jun’24 Increased overall provision coverage ratio to 91% vs 66% in Jun’23 Delivered RoA of >4.0% for 6 consecutive quarters Capital Adequacy and Liquidity Our capital base is strong with a capital adequacy ratio of 27.9% as on Jun’24 Book Value per share at Rs 227 on a consolidated basis The Company continues to maintain a healthy balance sheet liquidity of ~Rs. 1,400 crore and has undrawn sanctions worth Rs 1,370 crore as on 30th June 2024 Borrowing Profile Total borrowings stood at Rs 7,403 crore as on 30th June 2024 Debt-to-equity ratio as on 30th June 2024 stood at 2.7x The Company has a diversified and large lender base of 77 active lenders Asset Quality On-book Gross Non-Performing Assets stood at 2.7% amounting to Rs 219 crore We have sufficient on-book provisions amounting to Rs 200 crore as on 30th June 2024, which is 2.5% of on-book portfolio. Provisions required as per RBI is Rs 154 crore. Temporary rise in delinquencies is attributed to the severe heat waves across multiple regions and operational constraints during general elections During Q1 FY25, collection against write-offs were ~Rs. 6 crore Collection efficiency for Q1 FY25 stood at 97.9% Commenting on the performance, HP Singh, Chairman cum Managing Director of Satin Creditcare Network Limited, said, “This first quarter presented notable challenges, which is typically a slow quarter due to harvest season. We had strategies in place to navigate the crisis adeptly by strengthening our underwriting and field operations, enhancing our risk framework by incorporating more stringent policies and refining processes. With the aforementioned approaches, we maintained consistent performance in our net interest margins, operating efficiency, and return ratios. Our overall AUM grew by 23% YoY to Rs 11,706 crore while the customer base grew by 15% YoY to 35.1 Lacs at the end of the Q1FY25. Our PAT grew by 20% YoY to Rs 105 crore. This resulted in RoA of 4.0% and RoE of 17.2%. This marks the sixth consecutive quarter in which we have achieved an RoA of over 4%, reflecting our strong cross-cycle performance and resulting in sustainable profitability. Our proactive steps have allowed us to maintain stability and continue delivering value to our stakeholders. Considering the dynamic landscape, we are revising our guidance on AUM growth to 20% for FY25.” Result PDF