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.”