Satin Creditcare Network Ltd · NSE:SATIN

Satin Creditcare Network — FY2022 Earnings Presentation

57 slides from Satin Creditcare Network's earnings presentation, May 4, 2022

  1. Slide 1: Intimation of Investor Presentation to stock exchanges

    May 4, 2022 To, The Manager, The Manager, National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, C-1, Block G, 25th Floor, P. J. Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai-400051 Mumbai – 400001 Scrip Code: SATIN Scrip Code: 539404 Sub: Investor Presentation Dear Si

  2. Slide 2: Investor Presentation May 2022

    Investor Presentation May 2022

  3. Slide 3: Contents

    Contents 03 - 14 15 - 19 20 - 32 Business Update & New Initiatives Overview and Key Performance What makes Satin a Compelling Highlights Investment Story 33 - 46 47 - 56 Key Financial & Operational Metrices Company Background Cautionary Statement Any forward-looking statements about expected future

  4. Slide 4: Business Update & New Initiatives

    Business Update & New Initiatives

  5. Slide 5: Updates – Back to Normalcy (1/2)

    Updates – Back to Normalcy (1/2) Collection Efficiency • Cumulative collection efficiency for Q4FY22 stood at 99.7% • Collection efficiency from Jul’21 to Mar’22 stood at 94.3% • For Q4FY22, collection efficiency in top 4 states (Uttar Pradesh, Bihar, Madhya Pradesh and Punjab) stood at 101%; repres

  6. Slide 6: Updates – Back to Normalcy (2/2)

    Updates – Back to Normalcy (2/2) Portfolio Re-structuring • Re-structuring in JLG & MSME Portfolio : Restructured portfolio outstanding of Rs. 925 crore as on 31st Mar’22; reduced to 18.0% of on-book AUM as compared to 21.4% in Sep’21 ARC • The Company has sold 13,695 stressed loan assets of Rs. 5,3

  7. Slide 7: New Regulatory Framework by RBI

    New Regulatory Framework by RBI The RBI issued directions namely ‘Reserve Bank Of India (Regulatory Framework for Microfinance) Directions, 2022 on 14th March’22. The directions are applicable from 01st April’22. Significance of the new Regulations • Changes are made to put all microfinance lenders

  8. Slide 8: Update on Assam Portfolio

    Update on Assam Portfolio • Assam cabinet approved relief to around 11 lacs microfinance borrowers On-book AUM (Rs. crore) (maximum up to Rs. 25,000 per borrower), who are making regular payments to banks (category 1) % of on- book 5.1% 4.3% 3.9% • The Bill is positive for the MFI Industry and the C

  9. Slide 9: Explaining the Elevated Cost Ratios

    Explaining the Elevated Cost Ratios Opex (Rs. crore) Operating Expense ratio (%) +5% 6.0% 6.3% 429 5.2% 409 378 FY20 FY21 FY22 FY20 FY21 FY22 Cost to Income ratio (%) • Higher Cost ratios are on account of lower business volumes leading to 65.0% lower base 57.7% 49.7% • With increase in AUM and inco

  10. Slide 10: Business Trends

    Business Trends… Rs. 7,617 crore Rs. 1,900 crore 28 Lacs 1,224 AUM* DISBURSEMENT in Q4FY22 ACTIVE CUSTOMERS NO. OF BRANCHES Asset under Management Trends (Q-o-Q) Disbursement Trends (Q-o-Q) 792 633 8,379 7,464 7,381 7,218 7,617 325 449 278 1,104 438 1,020 1,066 1,208 1,095 212 263 94 1,700 1,622 7,2

  11. Slide 11: Trends in Collection Efficiency

    …Trends in Collection Efficiency Collection Efficiency Trends Quarter on Quarter Month on Month 96.0% 97.1% 99.7% 100.3% 101.3% 81.8% 83.6% 87.8% 89.5% 100.5% 100.0% 100.3% 99.2% 98.7% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Jan-22 Feb-22 Mar-22 CE% Incl Assam CE% Excl Assam Collection Efficiency Trends in Key

  12. Slide 12: 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 • MSME Book grew from Rs. 272 crore in FY19 to Rs. 519 crore in FY22 (i.e. 90% growth) • Housing Finance Book grew from Rs. 79 crore in FY19 to Rs.

  13. Slide 13: Update on SHFL – Nil GNPA since inception

    Update on SHFL – Nil GNPA since inception Satin Housing Finance Limited AUM grew by 41% in Q4FY22 YoY SHFL had 2 successive profitable years despite Q4FY22 disbursement stood at Rs. 59 crore challenging business environment, PAT for FY 21-22 stood at Rs. 3.0 crore No Restructuring done No willful de

  14. Slide 14: Update on Subsidiaries – TFSL & SFL

    Update on Subsidiaries – TFSL & SFL Taraashna  Collection efficiency for Mar’22 stood at 101% Financial  Disbursement stood at Rs. 181 crore for Q4FY22 Services Limited  Sourcing business for SCNL & SFL under Nai Roshni  AUM growth of 27% YoY in Q4FY22  Healthy CRAR of 64.0% Satin Finserv  Cum

  15. Slide 15: Objective Behind Amalgamation

    Objective Behind Amalgamation The combined entity would be able to efficiently use the capital invested in the two entities and leverage the same Currently the revenue sharing arrangement between TFSL and SFL is taxable. In the combined entity, tax benefit will accrue to the business TFSL has signif

  16. Slide 16: Overview

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  17. Slide 17: 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

  18. Slide 18: Key Performance Highlights

    Key Performance Highlights

  19. Slide 19: Corporate Overview Standalone – FY22

    Corporate Overview Standalone – FY22 Rs. 4,031 crore 26.4 Lacs 23 1,029 DISBURSEMENT LOAN ACCOUNTS STATES & UT’s BRANCHES OUTSTANDING 9.6 Lacs Rs. 6,409 crore Rs. 40 crore NO. OF LOANS DISBURSED AUM PROFIT AFTER TAX 27.8% 0.5% Rs. 42,000 2.6% CAPITAL ADEQUACY RETURN ON ASSETS AVERAGE TICKET SIZE* RE

  20. Slide 20: Corporate Overview Consolidated – FY22

    Corporate Overview Consolidated – FY22 Rs. 1,381 crore 28 Lacs 1,224 REVENUE CLIENTS BRANCHES Rs. 755 crore Rs. 7,617 crore 23 NET INTEREST INCOME AUM STATES & UT’s 0.3% 1.3% Rs. 21 crore RETURN ON ASSETS RETURN ON EQUITY PROFIT AFTER TAX 19

  21. Slide 21: What makes Satin a Compelling Investment Story

    What makes Satin a Compelling Investment Story

  22. Slide 22: 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 Ample Liquidity & Positive ALM 07 Strong & Experienced Manageme

  23. Slide 23: 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 Mar’22 Services Limited(2) Limited(3) (SFL)(4) Start Date May’08 (JLG) May’12 Feb’18 Mar’19 Upto Rs. 50,000 Ticke

  24. Slide 24: With opportunities to leverage our client reach

    …With opportunities to leverage our client reach Satin finances product purchase of solar lamps, bicycles, consumer durables etc. and grants loan for safe water and sanitation facilities Financing ~Rs. 83 crore during FY22, business started picking up Enriching Lives Benefits  Enhances the producti

  25. Slide 25: Diversified Geographical Presence

    2. Diversified Geographical Presence …serving 28 lacs clients across India 59% 28 Lacs 30 Lacs Clients with Satin as Only No. of Active Clients No. of Loan Accounts Lender* 404 90,100 No. of Districts No. of Villages 76 3.2 Lacs No. of Regional Offices No. of Centres 23% 8,774 12,705 First Cycle Cli

  26. Slide 26: Leading to increasing footprints

    …Leading to increasing footprints % of total AUM AUM FY22 States FY16 FY22 (Rs. crore) UTTAR PRADESH 40.9% 23.7% 1,804 BIHAR 17.7% 14.4% 1,100 2. Reducing exposure to traditional regions MADHYA PRADESH 15.5% 8.3% 633 PUNJAB 12.7% 7.3% 557 UTTARAKHAND 3.2% 1.6% 120 JAMMU & KASHMIR 0.1% 0.1% 4 90.2% 5

  27. Slide 27: And de-risking geographical concentration

    …And de-risking geographical concentration To remain a PAN India Player Share of Top 4 States Reduced from 68% to 54% Limiting Exposure per district Average exposure per district % % of Top 10 Districts to AUM -21% 67.7 10.2 56.3 58.6 54.0 53.7 12.9 8.4 9.6 8.7 7.3 8.8 9.3 8.7 8.3 19 18.3 0.35 17.5

  28. Slide 28: A Difference Powered by Technological Prowess & Processes

    3. A Difference Powered by Technological Prowess & Processes… Turnaround Time : Game Changing Gold Standard Information Security. Customer Acquision to Disbursement Journey Digital Transformation Technology ISO 27001:2013 Certified reduced from 18 days to few minutes • Online real-time system • DMS

  29. Slide 29: Robust Underwriting & Full-fledged in-house Internal Audit

    4. Robust Underwriting & Full-fledged in-house Internal Audit Robust Underwriting Full-fledged in-house Internal Audit Real-time Credit Bureau checks to track loan history of the prospective clients, Credit Bureau scorecard for individual clients for better screening 106 Feedback based Zonal Auditor

  30. Slide 30: Well-diversified Liability Profile

    5. We have a well-diversified Liability Profile… …insulated from Capital Market Turbulence Product-wise Mar’22 Large Lender Base 56 Active Lenders 4.7% 0.4% Top 10 Lending Partners % Share as on 31st Mar’22 Bank of Baroda 10% Term Loan 27.3% Blue Orchard Microfinance Fund 7% NCD 46.6% IDFC First Ban

  31. Slide 31: Strong Capitalization with Ample Liquidity

    6. Strong Capitalization with Ample Liquidity Healthy CRAR to Support Growth Opportunities Benefit of Positive ALM Continues 26.3 24.9 24.3 28.5% 30.5% 22.3 22.1 27.8% 25.3% 21.2% 15.5 16.0 14.5 11.7 9.0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Avg. maturity of Assets Avg. maturity of Liabi

  32. Slide 32: Diversification with Allied Product Offerings

    Diversification with Allied Product Offerings Taraashna Financial Services Ltd - TFSL Satin Housing Finance Ltd (SHFL) Satin Finserv Limited (SFL) » Acting as a business correspondent, TFSL » 100% retail book comprising of: » Incorporated in Aug’18, got license from RBI provides credit to clients in

  33. Slide 33: 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 27.8% currently • Real-time data • Raised Rs 860 crore equity capital Learnings • Enha

  34. Slide 34: Key Financial & Operational Metrices

    Key Financial & Operational Metrices

  35. Slide 35: Key Operation Metrics

    Key Operation Metrics Districts, States and Branches Employees & Loan Officers 8,7742 1,257 1,2241 8,090 1,383 8,152 1,163 6,296 995 6,382 22 23 23 23 13,005 12,726 12,7053 11,831 18 1,495 1,790 1,537 1,325 9,004 404 1,344 383 388 340 302 11,148 10,612 10,736 10,419 7,653 FY18 FY19 FY20 FY21 FY22 FY

  36. Slide 36: Key Consolidated Financials

    Key Consolidated Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,503 1,445 67.6% 60.6% 1,380 53.4% 52.5% 1,381 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22* NII and PAT (Rs. crore) Opex to Avg AUM (%) 914 NII 803 742 755 PAT 6.7% 6.3% 6.4% 5.4% 201 155 21 -14 FY19 FY20 FY21 FY22 FY19 FY20

  37. Slide 37: Key Standalone Financials

    Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,401 1,373 65.0% 57.7% 1,273 50.8% 49.7% 1,262 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22* NII and PAT (Rs. crore) Opex to Avg AUM (%) 824 6.5% NII 6.0% 6.3% 734 655 660 PAT 5.2% 195 156 40 -14 FY19 FY20 FY21 FY22 FY19 FY20 FY

  38. Slide 38: Financial & Operational Details (Consolidated)

    Financial & Operational Details (Consolidated)

  39. Slide 39: Annexure – Business Details – Consolidated

    Annexure – Business Details – Consolidated Particulars Q4FY22 Q4FY21 YoY% Q3FY22 QoQ% AUM (Rs. crore) 7,617 8,379 -9.1% 7,218 5.5% SCNL 6,409 7,275 6,123 On-book AUM* 5,145 5,660 5,249 Assignment 1,204 1,359 771 Business Correspondence 60 256 103 TFSL 724 748 676 (1) SHFL 318 226 275 SFL 166 131 144

  40. Slide 40: Annexure – P&L Statement – Consolidated

    Annexure – P&L Statement – Consolidated Particulars (Rs. crore) FY22 FY21 YoY% Q4FY22 Q4FY21 YoY% Q3FY22 QoQ Revenue Interest and Fee Income 1,163 1,076 278 297 296 (Loss)/Gain due to DA 52 112 40 54 15 Treasury Income 70 71 23 13 15 BC Fees 74 88 18 31 18 Other Operating Income 23 32 6 11 5 Total R

  41. Slide 41: Financial Details (Standalone)

    Financial Details (Standalone)

  42. Slide 42: Annexure - Financial Performance – Standalone

    Annexure - Financial Performance – Standalone Particulars (Rs. crore) FY22 FY21 Q4FY22 Q4FY21 Q3FY22 Gross yield (1) 18.44% 17.57% 21.10% 21.18% 20.36% Financial Cost Ratio(2) 8.79% 8.52% 9.32% 8.88% 9.53% Net Interest Margin(3) 9.65% 9.04% 11.78% 12.30% 10.82% Operating Expense ratio(4)* 6.28% 5.22

  43. Slide 43: Annexure - P&L Statement – Standalone

    Annexure - P&L Statement – Standalone Particulars (Rs. crore) FY22 FY21 YoY% Q4FY22 Q4FY21 YoY% Q3FY22 QoQ% Revenue Interest and Fee Income 1,109 1,031 263 284 282 (Loss)/Gain due to DA 50 110 39 53 14 Treasury Income 65 66 22 12 14 BC Income 19 35 2 15 4 Other Operating Income 19 30 5 9 3 Total Rev

  44. Slide 44: Financial Details (Subsidiaries)

    Financial Details (Subsidiaries)

  45. Slide 45: Annexure - P&L Statement – TFSL

    Annexure - P&L Statement – TFSL Particulars (Rs. crore) FY22 FY21 Q4FY22 Q4FY21 Q3FY22 Revenue Total Revenue 69.7 59.3 19.6 17.7 20.6 Expenses Finance Cost 5.6 4.5 1.5 1.3 1.5 Employee Benefit Expenses 47.8 39.1 11.1 12.5 13.4 Credit Cost 33.4 11.3 7.0 10.3 12.5 Other Expenses 11.1 10.0 4.5 3.3 2.2

  46. Slide 46: Annexure - P&L Statement – SHFL

    Annexure - P&L Statement – SHFL Particulars (Rs. crore) FY22 FY21 Q4FY22 Q4FY21 Q3FY22 Revenue Interest and Fee Income 34.3 25.8 10.1 8.1 8.7 Treasury Income 0.8 0.3 0.2 0.0 0.2 Other income 3.0 3.5 1.4 2.4 0.8 Total Revenue 38.0 29.6 11.7 10.5 9.7 Expenses Finance cost 17.1 13.6 5.3 3.8 4.0 Employe

  47. Slide 47: Annexure - P&L Statement – SFL

    Annexure - P&L Statement – SFL Particulars (Rs. crore) FY22 FY21 Q4FY22 Q4FY21 Q3FY22 Revenue Interest and Fee Income 26.6 23.8 7.5 6.5 6.9 Treasury Income 0.6 0.4 0.3 0.1 0.2 Other income 0.4 0.6 0.2 0.1 0.2 Total Revenue 27.6 24.8 7.9 6.6 7.3 Expenses Finance cost 6.9 4.4 2.4 1.2 2.2 Employee bene

  48. Slide 48: Company Background

    Company Background

  49. Slide 49: Key Milestones

    Key Milestones Business Timeline 2016 2017 2018 2019 2022 Received NBFC license for TFSL & SFL amalgamation SHFL commenced lending in Started MSME Lending in Reached 27.1 lacs active Satin Finserv Ltd for MSME Filed first joint motion application Feb18; BC agreement with FY17; Acquired TFSL in clien

  50. Slide 50: Key Milestones

    Key Milestones Fund Raising Timeline 2015 2016 2017 2018 2019/20 2022  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);

  51. Slide 51: 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

  52. Slide 52: 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. 30,000 Rs. 31,000 – Rs. 50,000 Rs. 5,000 – Rs. 22,000 Rs. 10,000 – Rs. 35,000 Tenure : 12 - 24

  53. Slide 53: Making a Difference to the Community

    Making a Difference to the Community A Step Towards Women Empowerment and Skilling and Financial Literacy Workshop Flood Relief Activity Sponsoring Underprivileged students Funded towards the construction of the Girls Hostel in Conducted a 5 day skilling and financial literacy Provided rations to th

  54. Slide 54: Awards and Accolades

    Awards and Accolades  Mr. HP Singh, CMD, received the 'CEO of the Year - Micro Finance Company' Award  Mr. HP Singh, CMD, was conferred the Best CEO of the Year at 'Golden Globe Tigers' virtual awards ceremony in Malaysia  Mr. HP Singh received the 'Exemplary Leader' Award  Mr. HP Singh received

  55. Slide 55: Shareholding Pattern

    Shareholding Pattern Shareholding as on 31st March, 2022 Update on Corporate Action Retail & Others • During Q3FY22, the Board of Directors of the 20.0% Company, considered and approved the fund raising Promoters by way of the Preferential Issue of Rs. 225 crore 36.7% Bodies Corporate • Successfully

  56. Slide 56: 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

  57. Slide 57: Contact Information

    Contact Information Company (Investors & Media) : Ms. Aditi Singh Head – Strategy E: aditi.singh@satincreditcare.com T: +91 124 4715 400 www.satincreditcare.com

Satin Creditcare Network — FY2022 Earnings Presentation on 6ix