Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q3 FY2021 Earnings Presentation
50 slides from Satin Creditcare Network's earnings presentation, February 2021
Slide 1: Investor Presentation February 2021
Investor Presentation February 2021
Slide 2: Content
Content 03 - 08 09 - 13 14 - 28 COVID – 19 Business Update & New Overview and Key Performance What makes Satin a Compelling Initiatives Highlights Investment Story 29 - 42 43 - 49 Key Financial & Operational Metrices Company Background Cautionary Statement Any forward-looking statements about expect
Slide 3: COVID-19 Business Update New Initiatives
COVID-19 Business Update New Initiatives
Slide 4: Witnessed Significant Improvement in Collection Efficiency
Witnessed Significant Improvement in Collection Efficiency Backed by Substantial Reduction in % of Non-Paying Customers • 98% clients have paid all instalments in Jan’21 as against 68% in Sep’20 • Significant improvement in number of non-paying clients from 11% in Sep’20 to <2% in Jan’21 • Cumulativ
Slide 5: AUM & Disbursement Approaching Pre-COVID levels
AUM & Disbursement Approaching Pre- COVID levels Disbursement Approaching Pre-COVID Levels While Displaying Healthy Asset Quality 914 731 227 607 289 Reaching Pre-COVID Level 198 2,516 239 1,904 22 85 1,624 13 632 54 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Standalone Disbursments (Rs. Crs.) Disburse
Slide 6: COVID-19 Business Update: Collections, Capitalization & Liquidity
COVID-19 Business Update: Collections, Capitalization & Liquidity Provisioning and Asset Quality • Prudently recognized provisions of Rs 305 crore in 9MFY21 • Adequate Provisioning: Cumulative Provisions stood at 5.7% of the on-book AUM as of 31st Dec’20, on account of potential COVID related asset
Slide 7: Update on Subsidiaries
Update on Subsidiaries Satin Housing Finance Limited SHFL had a profitable quarter despite challenging business environment No restructuring of any loan Cumulative collection efficiency for 9MFY21 stood at 99.3% As of 31st Aug’20, ~20% of clients have availed for the moratorium Amount under moratori
Slide 8: Update on Subsidiaries
Update on Subsidiaries Taraashna Financial Services Limited Satin Finserv Limited ✓ ~7% cases were restructured ✓ Collection Efficiency for Dec’20 stood at 91% ✓ ~3% clients availed complete moratorium ✓ Cumulative Collection Efficiency for Q3FY21 stood at 84% ✓ Non-paying clients amount to <2% ✓ No
Slide 9: Overview and Key Performance Highlights
Overview and Key Performance Highlights
Slide 10: Key Highlights
Key Highlights Bolstered Capital Position by successfully closing the Rights Issue of Rs. 120 crores in Aug’20 with an overwhelming response (Issue was oversubscribed by 123%) Share of New Disbursement in FY21 as % of Total AUM New disbursement made in FY21 (post-COVID) contribute 49% of Pre-Covid P
Slide 11: Business Performance Highlights
Business Performance Highlights India’s leading NBFC-MFI with Assets Under Management (AUM) of Rs. 7,880 crore, having 30.1 lacs clients, 1252 branches, 382 districts and 23 states as on Dec’20. Implemented cashless disbursement across Percentage of Promoter pledge has Awarded Certificate of Excelle
Slide 12: Corporate Overview Standalone – 9MFY21
Corporate Overview Standalone – 9MFY21 Rs. 2,310 crore 30.3 Lacs 23 1,021 DISBURSEMENT LOAN ACCOUNTS STATES & UT’s BRANCHES OUTSTANDING 7.4 Lacs Rs. 6,907 crore Rs. (56 crore) NO. OF LOANS DISBURSED GROSS LOAN PORTFOLIO PROFIT AFTER TAX 25.31% (1.0%) Rs. 31,000 (5.3%) CAPITAL ADEQUACY RETURN ON ASSE
Slide 13: Corporate Overview Consolidated – 9MFY21
Corporate Overview Consolidated – 9MFY21 Rs. 972 crore 30.1 Lacs 1,252 REVENUES CLIENTS BRANCHES Rs. 497 crore Rs. 7,880 crore 23 NET INTEREST INCOME GROSS LOAN PORTFOLIO STATES & UT’s (0.9%) (4.9%) Rs. (52) crore RETURN ON ASSETS RETURN ON EQUITY PROFIT AFTER TAX 13 Above Data is for 9MFY21. RoA an
Slide 14: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story 14
Slide 15: 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
Slide 16: Differentiated Product Offerings
1. Differentiated Product Offerings Business Correspondent SCNL Housing Finance SME Services Product features Taraashna Financial Services MFI(1) Satin Housing Finance Limited(3) Satin Finserv Limited (SFL)(4) as on Dec’20 Limited(2) Start Date May’08 (JLG) May’12 Feb’18 Mar’19 Upto Rs. 50,000 Ticke
Slide 17: With opportunities to leverage our client reach
… With opportunities to leverage our client reach Satin finances product purchase of solar lamps, bicycles etc. and grants loan for safe water and sanitation facilities Financing ~Rs. 100 crore during FY20, Rs. ~14 crore during 9M FY21 Product Financing Benefits Bicycle Loan Solar Products ▪ Enhance
Slide 18: Diversified Geographical Presence
2. Diversified Geographical Presence …serving ~31 lacs clients across India 59% 30 Lacs+ ~34 lacs Clients with Satin as Only No. of Active Clients No. of Loan Accounts Lender* 382 ~84,000 No. of Districts No. of Villages 73 2.5 lacs No. of Regional Offices No. of Centres 34% 7,597 11,411 No. of Firs
Slide 19: Increasing exposure to newer states, reducing traditional regions
… Leading to increasing footprints % of total GLP GLP (Rs. crore) States FY16 Q3FY21 Q3FY21 Uttar Pradesh 40.9% 21.3% 1,675 Bihar 17.7% 15.7% 1,236 Punjab 12.7% 8.9% 699 2. Reducing exposure to traditional regions Madhya Pradesh 15.5% 8.5% 669 Uttarakhand 3.2% 1.4% 113 Maharashtra 1.6% 1.0% 82 Total
Slide 20: And de-risking geographical concentration
… And de-risking geographical concentration To have become a PAN India Player Share of Top 4 States Reduced from 77% to 54% Limiting Exposure per district Average exposure per district % % of Top 10 Districts to AUM 77.3 -30% 10.1 67.7 56.3 58.6 10.2 54.3 0.45 19.2 21 12.9 8.4 9.6 8.9 0.35 19 8.8 9.
Slide 21: A Difference Powered by Technological Prowess & Processes
3. A Difference Powered by Technological Prowess & Processes… Turn Around Time of Customer Acquisition Game Changing Help us to be ahead of the curve to better to disbursement journey Digital Transformation Technology respond to the ever-changing business Reduced from 18 days to a few (LMS) scenario
Slide 22: Leading to Operating Efficiency & Scalability
… Leading to Operating Efficiency & Scalability New initiatives… ...leading to improved processes Centralized processes Reduced TAT KYC Compliance & Real- time Credit Bureau checks Real-time Decision Making Auto bank reconciliation Faster Book Closing using API Enhanced Productivity Penny drop verif
Slide 23: 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, also created own Credit Bureau scorecard for individual clients for better screening 96 Feedback bas
Slide 24: Well-diversified Liability Profile
5. We have a well-diversified Liability Profile… … insulated from Capital Market Turbulence Product-wise Dec’20 Large Lender Base 3% 61 Active Lenders 0% 17% Top 10 Lending Partners % Share as on 31st Dec’20 Term Loan NABARD 14% NCD 53% Buyout Indian Bank 9% Commercial paper State Bank of India 8% 2
Slide 25: Strong Capitalization with Ample Liquidity
6. Strong Capitalization with Ample Liquidity Healthy CRAR to Support Growth Opportunities Benefit of Positive ALM Continues 26.3 30.5% 23.9 28.5% 21.5 22.3 22.1 25.3% 21.2% 15.5 13.5 11.7 8.5 9.0 FY18 FY19 FY20 9MFY21 FY17 FY18 FY19 FY20 9MFY21 Avg. maturity of Assets Avg. maturity of Liabilities S
Slide 26: With stable asset quality
… With stable asset quality On-book Provisions & NNPA (Rs. crore) On- book GNPA, Provisions & NNPA (%) 113 132 14.9% 151 513 5.0% 177 305 Provisions Provisions 147 156 NNPA NNPA 5.0% 208 9.9% 0.1% 4.0% 3.3% -5 1.7% 4.9% -34 -45 2.3% 3.4% -0.1% Mar-20 Jun-20 Sep-20 Dec-20 Mar-17 Mar-18 Mar-19 Mar-20
Slide 27: 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 provides » 100% retail book comprising of: » Incorporated in Aug’18, got license from RBI to credit to clients
Slide 28: Successfully Navigated Crisis During Legacy of 30 Years
Successfully Navigated Crisis During Legacy of 30 Years Learnings from Demonetization De-risking Geographic Reduction in Top 4 State District Diversification ❑ Implementation of best-in-class technology Concentration (No. of States) Contribution • Reduced TAT + 7 states • Real-time data +69% • Enhan
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 1,2521 1,383 8,152 1,163 6,382 6,296 7,5972 767 995 23 23 4,481 13,005 22 11,831 1,495 11,4413 18 1,325 16 9,004 1,493 6,910 1,344 383 370 340 1,109 302 10,419 11,148 235 9,633 7,653 5,801 FY17 FY18 FY19 FY20 9MFY21 FY17
Slide 31: Key Consolidated Financials
Key Consolidated Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,445 1,503 67.6% 57.0% 53.4% 52.5% 49.3% 341 321 375 Q3FY20 Q2FY21 Q3FY21 FY19 FY20 Q3FY20 Q2FY21 Q3FY21 FY19 FY20 NII and PAT (Rs. crore) Opex to GLP (%) 914 NII 803 6.7% 6.2% 6.3% PAT 5.3% 5.6% 227 185 201 162 155 47 16
Slide 32: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,373 1,401 65.2% 54.7% 50.8% 49.7% 46.2% 315 294 347 Q3FY20 Q2FY21 Q3FY21 FY19 FY20 Q3FY20 Q2FY21 Q3FY21 FY19 FY20 NII and PAT (Rs. crore) Opex to GLP (%) 824 6.5% NII 734 5.9% 6.0% 5.1% 5.3% PAT 203 164 195 140 156 48 13 -
Slide 33: Financial & Operational Details (Consolidated)
Financial & Operational Details (Consolidated)
Slide 34: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q3FY21 Q3FY20 YoY% Q2FY21 QoQ% AUM (Rs. crore) 7,880 7,284 8.2% 7,667 2.8% On-Book JLG AUM* 5,333 4,092 4,572 Securitization 28 34 39 Assignment 1,216 1,776 1,699 Business Correspondence 362 522 473 TFSL - Business Correspondence 646 646 639 (1)
Slide 35: Annexure – P&L Statement – Consolidated
Annexure – P&L Statement – Consolidated Particulars (Rs. crore) 9MFY21 9MFY20 YoY% Q3FY21 Q3FY20 YoY% Q2FY21 QoQ % Revenue Interest and Fee Income 780 737 270 250 251 DA Income 58 151 0 56 44 Treasury Income 58 95 18 32 20 BC Fees 57 93 24 31 21 Other Operating Income 19 19 8 6 3 Total Revenue 972 1
Slide 36: Financial Details (Standalone)
Financial Details (Standalone)
Slide 37: Annexure - Financial Performance – Standalone
Annexure - Financial Performance – Standalone Particulars (Rs. crore) 9MFY21 Q3FY21 Q3FY20 Q2FY21 FY20 FY19 Gross yield (1) 16.9% 17.2% 21.7% 18.1% 20.6% 24.0% Financial Cost Ratio(2) 8.7% 9.0% 9.0% 8.7% 8.5% 11.1% Net Interest Margin(3) 8.3% 8.2% 12.7% 9.4% 12.1% 12.8% Operating Expense ratio(4) 5.
Slide 38: Annexure - P&L Statement – Standalone
Annexure - P&L Statement– Standalone Particulars (Rs. crore) 9MFY21 9MFY20 YoY% Q3FY21 Q3FY20 YoY% Q2FY21 QoQ % Revenue Interest and Fee Income 748 719 259 242 241 DA Income 58 151 - 56 44 Treasury Income 54 90 17 31 18 BC Income 20 48 10 15 7 Other Operating Income 18 16 8 4 5 Total Revenue 898 1,0
Slide 39: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 40: Annexure - P&L Statement – TFSL
Annexure - P&L Statement – TFSL Particulars (Rs. crore) Q3FY21 Q3FY20 Q2FY21 FY20 FY19 Revenue Total Revenue 13.1 17.2 18.2 69.8 68.3 Expenses Finance Cost 1.2 0.9 1.1 3.2 2.5 Employee Benefit Expenses 9.2 9.7 8.9 38.3 35.3 Credit Cost -0.3 6.1 0.5 13.4 5.7 Other Expenses 2.4 2.5 2.7 14.4 11.1 Depre
Slide 41: Annexure - P&L Statement – SHFL
Annexure - P&L Statement – SHFL Particulars (Rs. crore) Q3FY21 Q3FY20 Q2FY21 FY20 FY19 Revenue Interest and Fee Income 6.6 4.6 5.6 17.1 4.5 Treasury Income 0.0 0.5 0.3 1.6 1.0 Other income 0.6 1.1 0.3 2.3 1.6 Total Revenue 7.2 6.2 6.2 21.0 7.1 Expenses Finance cost 3.6 2.4 3.1 8.3 1.1 Employee benef
Slide 42: Annexure - P&L Statement – SFL
Annexure - P&L Statement – SFL Particulars (Rs. crore) Q3FY21 Q3FY20 Q2FY21 FY20 Revenue Interest and Fee Income 5.93 4.48 5.57 13.59 Treasury Income 0.08 0.06 0.14 0.24 Other income 0.14 0.06 0.31 0.18 Total Revenue 6.15 4.60 6.02 14.02 Expenses Finance cost 1.13 0.48 1.03 1.76 Employee benefit exp
Slide 43: Company Background
Company Background
Slide 44: Key milestones
Key milestones Business Timeline 2016 2017 2018 2019 2020 Received NBFC license for SHFL commenced lending in Started MSME Lending in Reaches 27.1 lacs active Satin Finserv Ltd for MSME Received the Award of Feb18; BC agreement with FY17; Acquired TFSL in clients and AUM of Rs. 4,882 business; reach
Slide 45: Key milestones: Fund Raising Timeline
Key milestones Fund Raising Timeline 2015 2016 2017 2018 2019/20 ▪ Raised Rs. 41.5 crore ▪ Raised Rs. 250 crore ▪ In Apr’17, raised $10 ▪ Pref. Allotment: ▪ Exit of MV Mauritius from SBI FMO(3) via QIP in Oct’16; mn from ADB(4) ; Equity funding by (including warrants); Exit of DMP in Jul'16 Investme
Slide 46: 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 Business Micro Small
Slide 47: With Customised Products as per Client Needs
… With Customised Products as per Client Needs Income Generation Loan Long Term Loan Product Financing/Wash (Prarambh) (Vriddhi) Loan Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 30,000 Rs. 30,000 – Rs. 50,000 Rs. 799 – Rs. 17,999 Tenure : 24 months Tenure : 24 months Tenure : 3-18 mon
Slide 48: Making a Difference to the Community
Making a Difference to the Community Supporting Local Communities Health Check-up Camps SCNL was Appreciation During COVID-19 Pandemic 5 Free health check-up camps in Assam and awarded an by the local Odisha appreciation administration Distributed masks, ration and hygiene kits across districts in P
Slide 49: Awards and Accolades
Awards and Accolades ▪ Mr. HP Singh, CMD, was conferred the ‘Golden Globe Tiger Awards’ at a virtual awards ceremony in Malaysia ▪ Mr. HP Singh received the ‘Exemplary Leader’ Award ▪ Mr. HP Singh received Business Leader of the Year Award in NBFC Sector at World HRD Congress by ET Now November 2018
Slide 50: Contact Information
Contact Information Company (Investors & Media) : Ms. Aditi Singh Head – Investor Relations & Corporate Communication E: aditi.singh@satincreditcare.com T: +91 124 4715 400 (Ext – 5304) www.satincreditcare.com
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