Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q3 FY2023 Earnings Presentation
49 slides from Satin Creditcare Network's earnings presentation, January 2023
Slide 1: Investor Presentation January 2023
Investor Presentation January 2023 DETERMINED. DEFINITIVE. DECISIVE.
Slide 2: Contents
Contents 03 - 14 15 - 17 18 - 28 Business Update & New Initiatives Key Performance Highlights What makes Satin a Compelling Investment Story 29 - 39 40 - 49 Key Financial & Operational Metrices Company Background Cautionary Statement Any forward-looking statements about expected future events, finan
Slide 3: Business Update & New Initiatives
Business Update & New Initiatives
Slide 4: Advent of Growth
Advent of Growth (Rs. crore) Growth in Asset under Management… ..owing to increasing disbursement… YoY Growth YoY Growth +11% +59% QoQ QoQ +10% +6% 6,798 1,622 1,554 1,564 1,725 6,123 6,409 6,389 6,417 1,085 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 ..with focus on new cl
Slide 5: New Portfolio Testimonial of our Robust Underwriting
New Portfolio Testimonial of our Robust Underwriting Portfolio originated Jul’21 onwards showing excellent performance New portfolio as a % of on-book MFI portfolio PAR of New portfolio 0.2% 0.2% 0.1% 89.7% 71.0% 84.0% 0.4% 0.4% 0.5% 29.0% 99.4% 99.4% 99.4% 16.0% 10.3% Q1FY23 Q2FY23 Q3FY23 Q1FY23 Q2
Slide 6: Improving Asset Quality
Improving Asset Quality Improving Asset Quality with Healthy Collection Efficiency GNPA (%) Collection Efficiency (%) 8.61% 8.01% 100.2% 100.0% 99.7% 4.31% 3.96% 3.92% 97.3% 96.0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23* Q2FY23* Q3FY23* • On-book GNPA stood at Rs. 188 crore (3.92% of
Slide 7: Update on Restructured Book
Update on Restructured Book Particulars (Rs. crore) Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Total Opening Balance - 1,151 1,023 925 584 318 - Addition 1,151 0 0 0 0 0 1,151 Collection - 128 98 144 125 93 588 Written off - 196 142 25 363 Closing Balance 1,151 1,023 925 584 318 200 200 As on Q3FY23
Slide 8: Update on Assam
Update on Assam On-book AUM of Rs. 270 crore i.e. 5.6% of on-book AUM On-book GNPA of Rs. 122 crore The Company has started disbursing to good clients; disbursement in 9MFY23 stood at Rs. 159 crore PAR 1 from disbursement made in 9MFY23 is 0.06% Update on AMFIRS • Relief to Category 1 and 2 borrower
Slide 9: Strong Capitalization
Strong Capitalization Healthy CRAR to Support Growth Opportunities… • CRAR of 27.0%, up from 22.6% in Q1FY23 • During the quarter, the Company received the second tranche of ~Rs. 25 crore, against conversion of Fully Convertible 30.5% Warrants from Florintree Ventures LLP (entity belonging to 27.8%
Slide 10: More Updates
More Updates Achievements Commitment to Sustainability • All the group companies are profitable in 9MFY23 • Awarded by Indian Social Impact Awards 2023 for “Best Education Support Initiative of the Year 2022-23” • Recognized as “Company with Great Managers 2022” by People Business • Touched over 1,5
Slide 11: Update on SHFL
Update on SHFL Satin Housing Finance Limited AUM grew by 39% in Q3FY23 YoY to reach Rs. SHFL had 2 successive profitable years despite 383 crore challenging business environment, PAT for Q3FY23 Q3FY23 disbursement stood at Rs. 50 crore stood at Rs. 1.77 crore Clients belonging to Middle 100% retail
Slide 12: Update on SFL
Update on SFL SFL’s nascent journey was disrupted by Covid within the very first year of operations. In spite of this, SFL has been profitable since the operations Small Ticket business Loans started averaging <= Rs. 2 lacs secured against collateral consists of approximately 65% of the portfolio He
Slide 13: Business Trends
Business Trends… Rs. 7,945 crore Rs. 1,880 crore 27.0 Lacs 1,260 AUM* DISBURSEMENT in Q3FY23 ACTIVE CUSTOMERS NO. OF BRANCHES Asset under Management Trends (Q-o-Q) Disbursement Trends (Q-o-Q) 7,218 7,617 7,569 7,575 7,945 449 633 570 570 627 278 154 154 145 1,146 263 1,208 1,180 1,158 1,095 1,622 1,
Slide 14: Diversifying to Secured Assets – Future Upside Potential
Diversifying to Secured Assets – Future Upside Potential Non-MFI Portfolio • Non-MFI book of the Company includes the MSME and Housing Finance business o MSME Book grew from Rs. 378 crore in FY20 to Rs. 608 crore in Q3FY23 (i.e. 61% growth) o Housing Finance Book grew from Rs. 139 crore in FY20 to R
Slide 15: Key Performance Highlights
Key Performance Highlights
Slide 16: Corporate Overview Standalone – Q3FY23
Corporate Overview Standalone – Q3FY23 Rs. 1,725 crore Rs. 43,000 23 1,057 DISBURSEMENT AVERAGE TICKET SIZE* STATES & UT’s BRANCHES 4.1 Lacs Rs. 6,798 crore 24.9 Lacs NO. OF LOANS DISBURSED AUM LOAN ACCOUNTS OUTSTANDING 27.0% Rs. 55 crore 2.9% 12.4% CAPITAL ADEQUACY PROFIT AFTER TAX RETURN ON ASSETS
Slide 17: Corporate Overview Consolidated – Q3FY23
Corporate Overview Consolidated – Q3FY23 28.3 Lacs 1,260 LOAN ACCOUNTS BRANCHES OUTSTANDING Rs. 1,880 crore Rs. 7,945 crore Rs. 59 crore DISBURSEMENT PROFIT AFTER TAX AUM 3.1% 15.8% RETURN ON ASSETS^ RETURN ON EQUITY^ 17 ^Annualized
Slide 18: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story
Slide 19: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story Leading MFI Player With Differentiated Product Offerings 01 Diversified Geographical Reach 02 03 Technology Prowess 04 Robust Underwriting Processes 05 Well-diversified Liability Profile 06 Positive ALM with Ample Liquidity 07 Strong & Experienced Manag
Slide 20: Differentiated Product Offerings
1. Differentiated Product Offerings Business Correspondent SCNL Housing Finance SME Services Product features Taraashna Financial Satin Housing Finance Satin Finserv Limited MFI(1) as on Dec’22 Services Limited(2) Limited(3) (SFL)(4) Start Date May’08 (JLG) May’12 Feb’18 Mar’19 Upto Rs. 50,000 Ticke
Slide 21: Leveraging Distribution Outreach through Enhanced Product Financing
…Leveraging Distribution Outreach through Enhanced Product Financing Satin finances product purchase of solar lamps, bicycles, consumer durables etc. and grants loan for safe water and sanitation facilities Financed ~Rs. 112 crore during 9MFY23 Enriching Lives Benefits Enhances the productivity an
Slide 22: Diversified Geographical Presence
2. Diversified Geographical Presence …serving 27 lacs clients across India 57% 27.0 Lacs 28.3 Lacs Clients with Satin as Only No. of Active Clients No. of Loan Accounts Lender* 401 90,000 No. of Districts No. of Villages 78 3.1 Lacs No. of Regional Offices No. of Centres 27% 7,040 10,604 First Cycle
Slide 23: Healthy PAN India Presence
Healthy PAN India Presence Presence across 23 States and UT’s Limiting Exposure per district State & UT’s AUM (Rs. Crore) % Share Particulars FY18 FY19 FY20 FY21 FY22 Q3FY23 Uttar Pradesh 2,105 26.5% No. of Districts - JLG 306 359 397 388 404 401 Bihar 1,155 14.5% % of Districts with <1% Madhya Prad
Slide 24: Technology Prowess
3. Technology Prowess AePS Mode Website UPI 2.0 Aadhaar enabled Payment System, a strong • Payment gateway on the SCNL • First in the industry to launch UPI 2.O lever to facilitate digital repayment of loan website autopay installments during the center meetings • Clients temporarily migrating for •
Slide 25: Continuous Process Re-engineering
4. Continuous Process Re-engineering Aadhaar E-Sign Strengthening the loan Robust new customer origination journey onboarding process • Another big step towards making the entire business • 2 step OTP authentication process at • MFI scores being used as process paperless to digitize the the time of
Slide 26: We have a well-diversified Liability Profile
5. We have a well-diversified Liability Profile… …insulated from Capital Market Turbulence Product-wise Dec’22 Large Lender Base 58 Active Lenders Top 10 Lending Partners % Share 5.7% State Bank of India 12% Term Loan & PTC 27.2% Bank of Baroda 9% NCD 51.4% Bank of Maharashtra 8% Direct Assignment I
Slide 27: Positive ALM with Ample Liquidity
6. Positive ALM with Ample Liquidity Benefit of Positive ALM Continues 26.3 24.9 24.3 24.2 15.5 16.0 16.2 14.5 FY20 FY21 FY22 Q3FY23 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 31st Dec’22 (Rs. crore) Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Inflows Liquidity at the
Slide 28: Successfully Navigated Crisis During Legacy of 30 Years
Successfully Navigated Crisis During Legacy of 30 Years Implementation of best-in-class technology Strong Capitalization with Ample Liquidity • Reduced TAT • Capital Adequacy has improved from 18.3% in 2016 to 27.0% currently • Real-time data • Raised Rs 910 crore equity capital Learnings • Enha
Slide 29: Key Financial & Operational Metrices
Key Financial & Operational Metrices
Slide 30: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 995 1,163 1,383 1,257 1,224 1,2601 6,382 6,296 8,152 8,090 8,774 7,0402 22 23 23 23 23 13,005 12,726 12,705 11,831 18 1,495 1,790 1,537 10,6043 1,325 9,004 1,238 404 401 1,344 383 388 340 302 11,148 10,612 10,736 10,419 7
Slide 31: Business Details – Consolidated
Business Details – Consolidated Particulars Q3FY23 Q3FY22 YoY% Q2FY23 QoQ% AUM (Rs. crore) 7,945 7,218 10.1% 7,575 4.9% SCNL 6,798 6,123 11.0% 6,417 5.9% On-book AUM* 4,791 5,249 4,996 Assignment 1,985 771 1,390 Business Correspondence 22 103 32 TFSL 563 676 612 SHFL 383(1) 275 362 SFL 200 144 184 A
Slide 32: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,401 64.8% 1,364 58.0% 57.5% 49.7% 1,273 1,262 FY20 FY21 FY22 9MFY23* FY20 FY21 FY22 9MFY23* NII and PAT (Rs. crore) Opex to Avg AUM (%) NII PAT 934 824 6.8% 659 656 6.0% 6.2% 5.3% 156 170 40 -14 FY20 FY21 FY22 9MFY23* FY20
Slide 33: Financial Details (Standalone)
Financial Details (Standalone)
Slide 34: Annexure - Financial Performance – Standalone
Annexure - Financial Performance – Standalone Particulars (Rs. crore) 9MFY23 Q3FY23 Q3FY22 Q2FY23 FY22 FY21 Gross yield (1) 27.55% 22.85% 20.36% 20.31% 18.44% 17.57% Financial Cost Ratio(2) 8.68% 8.76% 9.53% 8.44% 8.86% 8.47% Net Interest Margin(3) 18.87% 14.09% 10.82% 11.87% 9.58% 9.10% Operating E
Slide 35: Annexure - P&L Statement – Standalone
Annexure - P&L Statement – Standalone Particulars (Rs. crore) Q3FY23 Q3FY22 YoY% Q2FY23 QoQ% 9MFY23 9MFY22 YoY% FY22 Revenue Interest and Fee Income 268 282 262 796 846 1,109 Gain due to DA 88 14 39 140 11 50 Treasury Income 11 14 12 398* 44 65 BC Income 0 4 1 4 17 19 Other Operating Income 10 3 10
Slide 36: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 37: Annexure - P&L Statement – SFL
Annexure - P&L Statement – SFL Particulars (Rs. crore) Q3FY23 Q3FY22 Q2FY23 FY22 FY21 Revenue Interest and Fee Income 10.2 6.9 9.2 26.6 23.8 Treasury Income 0.2 0.2 0.1 0.6 0.4 Other income 0.6 0.2 0.6 0.4 0.6 Total Revenue 11.0 7.3 9.9 27.6 24.8 Expenses Finance cost 3.3 2.2 2.7 6.9 4.4 Employee be
Slide 38: Annexure - P&L Statement – SHFL
Annexure - P&L Statement – SHFL Particulars (Rs. crore) Q3FY23 Q3FY22 Q2FY23 FY22 FY21 Revenue Interest and Fee Income 12.8 8.7 13.0 34.3 25.8 Treasury Income 0.5 0.2 0.4 0.8 0.3 Other income 3.3 0.8 0.8 3.0 3.5 Total Revenue 16.5 9.7 14.1 38.0 29.6 Expenses Finance cost 7.2 4.0 7.0 17.1 13.6 Employ
Slide 39: Annexure - P&L Statement – TFSL
Annexure - P&L Statement – TFSL Particulars (Rs. crore) Q3FY23 Q3FY22 Q2FY23 FY22 FY21 Revenue Total Revenue 15.1 20.6 16.4 69.7 59.3 Expenses Finance Cost 1.4 1.5 1.6 5.6 4.5 Employee Benefit Expenses 9.5 13.4 10.1 47.8 39.1 Credit Cost 1.8 12.5 2.1 33.4 11.3 Other Expenses 1.8 2.2 2.1 11.1 10.0 De
Slide 40: Company Background
Company Background
Slide 41: Key Milestones
Key Milestones Business Timeline 2016 2017 2018 2019 2022 Received NBFC license for SHFL commenced lending in TFSL & SFL amalgamation Reached 27.1 lacs active Satin Finserv Ltd for MSME Started MSME Lending in FY17; Feb18; BC agreement with initiated and under purview of clients and AUM of Rs. 4,882
Slide 42: Key Milestones
Key Milestones Fund Raising Timeline 2015 2016 2017 2018 2019/ 2022 20 Raised Rs. 41.5 crore Raised Rs. 250 crore In Apr’17, raised $10 Pref. Allotment: Exit of MV Mauritius Successfully from SBI FMO(3) via QIP in Oct’16; mn from ADB(4) ; Equity funding by completed (including warrants);
Slide 43: Fostering Inclusive Growth
Fostering Inclusive Growth The history of SCNL goes back to 1990 when it started providing finance to the shopkeepers who were deprived of formal financing Today, after three decades of rich experience, SCNL has emerged as one of the leading and trusted Indian microfinance companies Headquartered in
Slide 44: Our Business Model
Our Business Model Formation of Documentation Groups and Paper work MICROFINANCE… & BEYOND 01 06 02 Social impact financing Follow up Income Generating of solar lamps, loans Long Term Loans (LTL) Loans (IGL) bicycles, water and Training sanitation facilities etc. of Groups 05 03 Micro Small & Medium
Slide 45: With Customised Products as per Client Needs
…With Customised Products as per Client Needs Income Generation Loan Long Term Loan (Prarambh) (Vriddhi) Product Financing WASH Loan Ticket Size : Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 40,000 Rs. 31,000 – Rs. 75,000 Rs. 2,000 – Rs. 32,000 Rs. 10,000 – Rs. 35,000 Tenure : 12 - 24
Slide 46: Making a Difference to the Community
Making a Difference to the Community As a purpose driven organization, it has always been our constant endeavor to align our objectives with the Sustainable Development Goals in order to contribute to the range of aspects that are the blueprints to achieving a better and more sustainable future for
Slide 47: Awards and Accolades
Awards and Accolades Mr. HP Singh was conferred as the ‘Pillar of the BFSI Industry’ bestowed at the Financial Express Modern BFSI Summit 2022 Mr. HP Singh received the 'CEO of the Year - Micro Finance Company' Award Mr. HP Singh was conferred the 'Best CEO of the Year' at Golden Globe Tigers
Slide 48: ESG Snapshot
ESG Snapshot Environment Social Water and Sanitation (WASH) Loans • Our strength lies in our ground level knowledge and the strong bond that we have • SCNL has been constructively working towards safe water and sanitation in around 121 created with our stakeholders districts and more than 35,000 vil
Slide 49: Contact Information
Contact Information Company (Investors & Media) : Ms. Aditi Singh Ms. Shweta Bansal Head – Strategy DGM - Investor Relations E: aditi.singh@satincreditcare.com E: Shweta.bansal@satincreditcare.com T: +91 124 4715 400 T: +91 124 4715 400 www.satincreditcare.com
Satin Creditcare Network — Q3 FY2023 Earnings Presentation on 6ix