Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q2 2024 Earnings Presentation
49 slides from Satin Creditcare Network's earnings presentation, October 2023
Slide 1: Investor Presentation October 2023
Investor Presentation October 2023 Relentless Exploring Prospects. Growing footprint.
Slide 2: Presentation Path and Cautionary Statement
Presentation Path 03 - 18 19 - 29 Business Update Satin a Compelling Investment Story 30 - 39 40 - 49 Key Financial & Operational Company Background Metrics Cautionary Statement Any forward-looking statements about expected future events, financial and operating results of the Company are based on c
Slide 3: Satin Group's AUM Hit a Significant Milestone
Satin Group’s AUM Hit a Significant Milestone Asset under Management (Rs. crore) AUM crossed Rs. 10,000 crore 33+ Years of Building a Legacy 10,100 9,115 8,174 8,379 32.1 Lacs 24 7,617 ACTIVE CLIENTS STATES & UTs FY20 FY21 FY22* FY23 H1FY24 96,000 1,335 VILLAGES BRANCHES YoY – 33% QoQ – 6% 3 *De-gro
Slide 4: Key Highlights for the Quarter
Key Highlights for the Quarter (YoY change) DISBURSEMENT TOTAL REVENUE RETURN ON ASSETS Rs. 2,403 crore 41% Rs. 538 crore 49% 4.8% (Q2FY23 – Rs. 1,709 crore) (Q2FY23 – Rs. 361 crore) +168 bps RETURN ON PROFIT AFTER TAX COST TO INCOME RATIO EQUITY 23.6% Rs. 107 crore 87% 46.4% -1404 bps +739 bps (Q2F
Slide 5: Overview: SCNL and Subsidiaries' Performance
Overview: SCNL and Subsidiaries’ Performance Holding MFI Company MSME Arm Affordable Housing 567 AUM (Rs. crore) 8,367 8,894 514 796 6,417 YoY 654 638 362 YoY +39% Reducing the BC +57% Book to adhere QoQ to Principal QoQ +6% Business Criteria +10% Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1F
Slide 6: Standalone Update
Standalone Update
Slide 7: Strong & Consistent Performance for last 5 Quarters
Strong & Consistent Performance for last 5 Quarters In line with the guided growth of 25%+ Asset Growth 76% portfolio in rural India; 96% districts have exposure of <1% Superior Asset Better than the industry average PAR of portfolio originated Jul’21 onwards Quality & Adequate Provisioning Stage-3
Slide 8: Sustainable AUM Growth
Sustainable AUM Growth (Rs. crore) AUM Strong net customer addition of 4.1 Lacs in H1FY24 YoY +39% 8,367 8,894 7,929 6,798 6,417 25.6 Lacs Active Clients 29.7 Lacs Q4FY23 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Disbursement • The increase in AUM is driven by a healthy mix of increase in ticket siz
Slide 9: Harnessing Operational Efficiencies
Harnessing Operational Efficiencies Loan Accounts / Branch Loan Accounts / Loan Officer YoY +16% 2,770 YoY 440 +11% 437 2,664 415 2,494 2,391 QoQ 395 QoQ 2,357 391 +4% +1% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GLP (Rs. crore) / Branch GLP (Rs. crore) / Loan Officer Yo
Slide 10: Improving Asset Quality
Improving Asset Quality PAR 1 PAR 90 & ECL 5.8% PAR 90 4.9% ECL % 4.0% 3.9% 3.8% 3.3% 3.0% 3.2% 2.1% 2.5% 2.4% 2.4% 1.5% 1.8% 1.3% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 • On-book GNPA stood at Rs. 157 crore (2.38% of on-book portfolio) • The Company has sufficient on-
Slide 11: Better than Industry Portfolio Quality post Pandemic
Better than Industry Portfolio Quality post Pandemic Portfolio originated Jul’21 onwards showing excellent performance PAR 1 PAR 90 PAR 1 NBFC-MFI: 5.8% vs 4.4% as last reported 6.8% 3.8% 3.8% 6.7% 3.6% 5.8% Satin: 1.5% vs 0.9% as last reported PAR 90 NBFC-MFI: 3.6% vs 2.6% as last reported 1.5% 0.7
Slide 12: Stable Financial Performance each Consecutive Quarter
Stable Financial Performance each Consecutive Quarter PAT (Rs. crore) RoA & RoE YoY +89% RoA YoY RoE RoA: + 176 bps 86 103 RoE: + 693 bps 94 17.5% 19.7% 55 55 20.3% 12.8% 12.4% 4.9% 4.3% 4.7% 3.0% 2.9% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Opex to Avg AUM Cost to Inco
Slide 13: Optimal Liquidity and Robust Capitalization
Optimal Liquidity and Robust Capitalization 93% YoY growth in funds raised during the period; ~76% on-book borrowing • CRAR of 25.7% as of Sep’23; well above regulatory Funds Raised during the half year (Rs. 2,512 4,848 requirement crore) 24% • Book Value per Share at Rs. 191 on a consolidated basis
Slide 14: Capital Structure
Capital Structure 21.2% Promoter Group Market Cap of Book Value^ 40.0% Florintree Ventures LLP ~ Rs. 2,300 crore* Rs. 191/ share Key Institutional Investors 16.6% No. of Equity No. of Bodies Corporate Shares Shareholders 9.96 crore ~24,000 Retail & Others 9.8% 12.4% Market • 14 rounds of capital rai
Slide 15: Awards & Accolades
Awards & Accolades Won the Most Impactful Scholarship Won the Corporate Excellence Award Programme Initiative of the year by for Making India Employable the Indian CSR Awards 2023 15
Slide 16: Actual Performance vs Guidance
Actual Performance vs Guidance Particulars H1 FY24 FY24 E (Actual) GLP Growth (%) 25%+ 39% NIM (%) 12.1% - 12.5% 12.8% Cost-to-Income Ratio (%) 45% - 50% 45.6% Operating cost/AUM (%) 5.60% - 5.75% 5.84% Credit Cost (%) 1.25% - 1.50% 0.95% RoA (%) 3.50% - 4.00% 4.52% RoE (%) 17.5% - 19.0% 18.5% Capit
Slide 17: SHFL - Leveraging the Outreach through Affordable Housing
SHFL - Leveraging the Outreach through Affordable Housing Business Snapshot Business Leveraging Potential • 100% retail book; clients belonging to • Opportunity to leverage on SCNL’s vast middle and low-income groups from tier II geographical presence and below cities o Tapping the High Income Custo
Slide 18: SFL - Leveraging the Outreach through Retail MSME
SFL - Leveraging the Outreach through Retail MSME Huge untapped potential of the missing middle of small On book AUM increased 45% YoY to reach Rs. 267 crore ticket business loans averaging <= Rs. 2 Lacs secured against collateral Leveraging SCNL Outreach – 2nd cycle + customer base - Focus on secur
Slide 19: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story
Slide 20: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story Leading MFI Player With Diversified Financial Products catering to rural India 01 Diversified Geographical Reach 02 03 State of the Art Technology backed by robust IT infrastructure 04 Strong Underwriting Capability 05 Well-diversified Liability Profile
Slide 21: Diversified Product Offerings
1. Diversified Product Offerings Satin Housing Finance SCNL Satin Finserv Limited (3) Limited (2) Product features Business Correspondent MFI(1) Housing Finance MSME as on Sep’23 Services Start Date May’08 (JLG) Feb’18 May’12 Mar’19 Upto Rs. 50,000 Ticket Size Range Upto Rs. 75,000 Rs. 100,000 – 4,0
Slide 22: Deepening Impact through Enhanced Value Creation
…Deepening Impact through Enhanced Value Creation Satin finances product purchase of solar lamps, bicycles, consumer durables etc. and grants loan for safe water and sanitation facilities Financed ~Rs. 80 crore during H1FY24 Enriching Lives Benefits Green Loans Consumer Durables Enhances the produ
Slide 23: Diversified Geographical Presence
2. Diversified Geographical Presence …serving 32.1 Lacs clients across India Presence across 24 States and UTs 96,000 1,335 No. ofAUM – 9,115 Villages No. of Branches 100% 412 96.4% No. of Districts Districts with <1% exposure 85 3.0 Lacs No. of Regional Offices No. of Centers Top 4 States 6.5% Top
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 2.0 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: Well-diversified Liability Profile
5. We have a well-diversified Liability Profile… Large Lender Base Product-wise Sep’23 72 Active Lenders 1.1% Top 10 Lending Partners % Share 7.2% State Bank of India 13% Term Loan & PTC Bank of Maharashtra 9% 24.5% NCD Direct Assignment Bank of Baroda 6% 57.5% ECB Bandhan Bank Limited 5% 9.7% Comme
Slide 27: Positive ALM with Ample Liquidity
6. Positive ALM with Ample Liquidity Benefit of Positive ALM Continues 24.9 25.9 25.6 24.3 18.2 17.7 16.0 14.5 FY21 FY22 FY23 H1FY24 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 30th Sep’23 (Rs. crore) Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Total Inflows Liquidity at the
Slide 28: Strong Management Team with over 250+ years of Experience
7. Strong Management Team with over 250+ years of Experience HP Singh Chairman cum Managing Director Jugal Kataria Rakesh Sachdeva Subir Roy Chowdhury Manoj Agrawal Aditi Singh Group Controller CFO CHRO Deputy CFO Head - Strategy Anil Kwatra Sunil Yadav Dhiraj Jha Bhuvnesh Khanna Amit Sharma 28 Head
Slide 29: Successfully Navigated Crisis During Legacy of Over Three Decades
8. Successfully Navigated Crisis During Legacy of Over Three Decades Implementation of best-in-class technology Strong Capitalization with Ample Liquidity • Reduced TAT • Capital Adequacy has improved from 18.3% in 2016 to 25.7% currently • Real-time data • Raised Rs. 1,009 crore equity capital
Slide 30: Key Financial & Operational Metrices
Key Financial & Operational Metrices
Slide 31: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,257 1,224 1,287 1,3351 8,090 8,774 7,449 8,8632 12,726 12,705 12,727 23 23 24 24 11,131 2,114 1,969 2,000 1,909 388 404 405 412 10,612 10,736 10,727 9,222 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 Districts States Bra
Slide 32: Business Details
Business Details Particulars Q2FY24 Q2FY23 YoY% Q1FY24 QoQ% AUM (Rs. crore) 10,100 7,575 33.3% 9,535 5.9% SCNL 8,894 6,417 8,367 On-book AUM* 6,588 4,996 6,232 Assignment 2,295 1,390 2,117 Business Correspondence 11 32 18 SHFL 567(1) 362 514 SFL 638 796 654 Business Correspondence 371 612 403 AUM Mi
Slide 33: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio 1,762 1,273 1,262 64.8% 58.0% 53.8% 45.6% 909 FY21 FY22 FY23* H1FY24 FY21 FY22 FY23 H1FY24 NII and PAT (Rs. crore) Opex to Avg AUM NII PAT 1,186 6.2% 6.3% 5.8% 5.3% 659 656 539 264 189 40 -14 FY21 FY22 FY23* H1FY24 FY21 FY22 FY2
Slide 34: Financial Details (Standalone)
Financial Details (Standalone)
Slide 35: Annexure - Financial Performance - Standalone
Annexure - Financial Performance - Standalone Particulars (Rs. crore) H1FY24 Q2FY24 Q2FY23 Q1FY24 FY23 Gross yield (1) 21.62% 22.80% 20.31% 20.48% 19.66% Financial Cost Ratio(2) 8.81% 9.28% 8.44% 8.35% 8.04% Net Interest Margin(3) 12.81% 13.52% 11.87% 12.13% 11.62% Operating Expense ratio(4) 5.84% 5
Slide 36: Annexure - P&L Statement - Standalone
Annexure - P&L Statement - Standalone Particulars (Rs. crore) Q2FY24 Q2FY23 Q1FY24 FY23 FY22 Revenue Interest and Fee Income 386 262 357 1,094 1,109 Gain due to DA 63 39 36 210 50 Treasury Income 24 12 14 413* 65 BC Income 0 1 0 4 19 Other Operating Income 19 10 15 41 19 Total Revenue 492 325 422 1,
Slide 37: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 38: Annexure - P&L Statement - SHFL
Annexure - P&L Statement - SHFL Particulars (Rs. crore) Q2FY24 Q2FY23 Q1FY24 FY23 FY22 Revenue Interest and Fee Income 14.7 13.0 17.3 52.9 34.3 Treasury Income 2.1 0.4 0.5 2.0 0.8 Other income 6.0 0.8 0.8 7.0 3.0 Total Revenue 22.8 14.1 18.5 61.9 38.0 Expenses Finance cost 10.8 7.0 10.4 28.2 17.1 Em
Slide 39: Annexure - P&L Statement - SFL
Annexure - P&L Statement - SFL Particulars (Rs. crore) Q2FY24 Q2FY23 Q1FY24 FY23 FY22 Revenue Interest and Fee Income 29.6 25.2 25.1 102.6 90.5 Treasury Income 0.8 0.7 1.0 2.9 3.4 Other income 0.5 0.4 0.7 1.0 3.2 Total Revenue 30.8 26.3 26.8 106.5 97.1 Expenses Finance cost 6.8 4.0 6.1 18.5 12.5 Emp
Slide 40: Company Background
Company Background
Slide 41: Key Milestones - Business
Key Milestones - Business Registers as NBFC Reached 4.9 Lacs active Date of inception of Satin- with the RBI clients & AUM of ~Rs. 580 October 16, 1990 crore as on Mar’13; Converts Started JLG Model to NBFC-MFI in Nov’13; IPO and listing on DSE, in May 2008 JSE and LSE(1) It begins 1990 1996 1998 20
Slide 42: Key Milestones – Fund Raising
Key Milestones – Fund Raising First private equity Raised Rs. 2.5 crore from Raised Rs. 18 crore from Raised Rs. 30 crore from Raised Rs. 28.4 crore of Raised Rs. 41.5 crore investment; Lok Capital in Nov’10 and Danish Micro Finance DMP, ShoreCap and MV equity from NMI from SBI FMO(3) Rs. 21.8 crore
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 more than three decades of rich experience, SCNL has emerged as one of the leading and trusted Indian microfinance companies Headqu
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 Madhya Vriddhi Loan (Prarambh) (Vriddhi) Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 45,000 Rs. 10,000 – Rs. 15,000 Rs. 31,000 – Rs. 80,000 Tenure: 12 - 24 months Tenure: 24 - 30 months Tenure: 24-30 m
Slide 46: SDGs in the Core of Our Community Connect Activities
SDGs in the Core of Our Community Connect Activities Infrastructure Development Financial Literacy Workshops In order to enrich the growth and advancement In collaboration with RBI and Sa-Dhan, as of date, we have conducted 31 workshops in the states – In of the students, faculty, and the larger In
Slide 47: Awards and Accolades
Awards and Accolades Mr. HP Singh bestowed with the ‘India’s Most Trusted Leader’ Award by GPTW, India Mr. HP Singh was conferred as the ‘Pillar of the BFSI Industry’ at the Financial Express Modern BFSI Summit 2022 Mr. HP Singh received the 'CEO of the Year - Micro Finance Company' Award Ms
Slide 48: ESG - Being a Responsible Financial Institution
ESG - Being a Responsible Financial Institution ENVIRONMENTAL SOCIAL GOVERNANCE Water and Sanitation (WASH) Loans • Our strength lies in our ground level • Board comprises of 7 members; 5 • Constructively working towards safe water knowledge and the strong bond that we have Independent directors of
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
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