Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q4 FY2023 Earnings Presentation
51 slides from Satin Creditcare Network's earnings presentation, April 2023
Slide 1: Investor Presentation April 2023
Investor Presentation April 2023 DETERMINED. DEFINITIVE. DECISIVE.
Slide 2: Contents
Contents 03 - 18 19 - 21 22 - 32 Business Update & New Initiatives Key Performance Highlights What makes Satin a Compelling Investment Story 33 - 42 43 - 51 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: SCNL - Doing it Right
SCNL - Doing it Right AUM Rs. 7,929 crore Growth of 24% YoY, more than the guided range • Advent of growth from H2FY23 New • Portfolio originated from Jul’21 Portfolio Constitutes ~94% of on-book MFI AUM onwards showing excellent PAR 1 of 0.7% and PAR 90 of 0.3% performance GNPA 3.28% • Improved ass
Slide 5: Spectacular 4th Quarter Performance
Spectacular 4th Quarter Performance (Rs. crore) Disbursement PAT RoA & RoE 94 RoA 2,546 +57% +59% RoE 20.3% 60 15.5% 1,622 4.9% 3.3% Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Opex to Avg AUM Cost to Income 7.0% - 1583 bps - 90 bps 60.8% 45.0% 6.1% Q4FY22 Q4FY23 Q4FY22 Q4FY23 Capitalizing on emerging
Slide 6: SHFL - Leveraging the Outreach through Affordable Housing
SHFL - Leveraging the Outreach through Affordable Housing AUM Rs. 505 crore • Impeccable track record of 5+ years Growth of 59% YoY • Clients belonging to middle and low- Disbursement Rs. 316 crore income groups from tier II and below Growth of 111% YoY cities • 100% retail book GNPA 0.34% Maintaine
Slide 7: SFL - Leveraging the Outreach through Retail MSME
SFL - Leveraging the Outreach through Retail MSME AUM Rs. 682 crore Healthy mix of retail and BC portfolio • Huge untapped potential of the Disbursement Rs. 381 crore missing middle of small ticket Seeing good traction in the retail book business loans averaging <= Rs. 2 Lacs secured against collate
Slide 8: Reaching Far and Wide. Serving Millions.
Reaching Far and Wide. Serving Millions. (YoY Change) 28.3 Lacs 1,287 ACTIVE CLIENTS BRANCHES YoY 1% Added 67 Branches Rs. 8,087 crore Rs. 9,115 crore 95,000 DISBURSEMENT VILLAGES AUM YoY 67% YoY 20% Added ~5,000 Villages Rs. 1,559 crore Rs. 414 crore TOTAL REVENUE PPOP YoY 13% YoY 69% 8 Data as on
Slide 9: Standalone Update
Standalone Update
Slide 10: Delivering Profitable Growth. With Impact. Strong Comeback.
Delivering Profitable Growth. With Impact. Strong Comeback. (YoY Change) Rs. 7,929 crore Rs. 7,390 crore 25.6 Lacs 1,078 24 AUM DISBURSEMENT ACTIVE CLIENTS BRANCHES STATES & UT’S YoY 24% YoY 83% YoY 4% Added 52 Branches Added 1 State 6.3% 53.8% 26.6% 3.5% 15.0% OPEX RATIO COST TO INCOME* CAPITAL ADE
Slide 11: New Portfolio Testimony of our Robust Underwriting
New Portfolio Testimony of our Robust Underwriting PAR 1 PAR 90 3.17% 5.94% 2.93% SCNL 5.39% 0.7% 2.18% PAR 1 3.65% SCNL 0.70% 0.27% 0.3% PAR 90 NBFC-MFI SFBs Banks + Others SCNL^ Our performance is far better than the industry PAR data 11 ^Data of SCNL for JLG on-book portfolio Data available as on
Slide 12: Emerging Stronger. Growth Back on Track.
Emerging Stronger. Growth Back on Track. (Rs. crore) AUM Growth Increasing disbursement Focus on new client acquisition 7,929 8,045 7,390 7,220 7,275 61% 6,409 41% 4,394 37% 4,031 30% 23% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 YoY up by 24% YoY up by 83% YoY up by
Slide 13: Prudent Approach. Good Asset Quality. Capital Accretion.
Prudent Approach. Good Asset Quality. Capital Accretion. Asset Quality & Stable Collection Healthy Capital Ample Liquidity Provisions Efficiency Position • On-book GNPA stood at Rs. • Cumulative collection • Sufficient liquidity of Rs. • Upto Q4FY23, received Rs. 185 crore (3.28% of on- efficiency f
Slide 14: Update on Assam
Update on Assam On-book AUM of Rs. 326 crore i.e. 5.8% of on-book AUM On-book GNPA of Rs. 95 crore The Company has started disbursing to good clients; disbursement in FY23 stood at Rs. 271 crore PAR 1 and PAR 90 from disbursement made in FY23 is 0.05% and 0.01% respectively Update on AMFIRS • Relief
Slide 15: Spotlight : Prestigious Accolades
Spotlight : Prestigious Accolades Won ET Excellence Award for Best Won Social Impact Awards for “Best Operational Excellence of the year for Education Support Initiative of the the initiative Train the Trainers Year 2022-23” 15
Slide 16: More Updates
More Updates Achievements Commitment to Sustainability • All the group companies are profitable in FY23 • Awarded by Indian Social Impact Awards 2023 for “Best Education Support Initiative of the Year 2022-23” • Recognized as Top 25 India’s Best Workplaces across the BFSI Industry by GPTW, India • T
Slide 17: 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 18: Stepping into the Future. With Confidence.
Stepping into the Future. With Confidence. AUM RoA Growth of 3.5% + 25% + Guidance for FY24 18
Slide 19: Key Performance Highlights
Key Performance Highlights
Slide 20: Business Trends…
Business Trends… (Rs. crore) Rs. 9,115 crore Rs. 8,087 crore 28.3 Lacs 1,287 AUM* DISBURSEMENT IN FY23 ACTIVE CLIENTS NO. OF BRANCHES Asset under Management Trends (Q-o-Q) Disbursement Trends (Q-o-Q) 7,617 7,569 7,575 7,945 9,115 633 570 570 627 930 243 1,187 1,146 1,208 1,180 1,158 154 278 154 145
Slide 21: Leveraging the Outreach – Expansion to Secured Asset Class
Leveraging the Outreach – Expansion to Secured Asset Class 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. 618 crore in FY23 (i.e. 64% growth) o Housing Finance Book grew from Rs. 139 crore in FY20 to R
Slide 22: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story
Slide 23: 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 24: 1. Differentiated Product Offerings
1. Differentiated Product Offerings Satin Housing Finance SCNL Satin Finserv Limited (3) Limited (2) Product features Business Correspondent MFI(1) Housing Finance MSME as on Mar’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 –
Slide 25: …Enriching Lives through Enhanced Product Financing
…Enriching Lives 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. 221 crore during FY23 Enriching Lives Benefits Enhances the productivity and income generating
Slide 26: 2. Diversified Geographical Presence
2. Diversified Geographical Presence …serving 28.3 lacs clients across India 56% 28.3 Lacs 29.6 Lacs Clients with Satin as Only No. of Active Clients No. of Loan Accounts Lender* 405 95,000 No. of Districts No. of Villages 79 3.0 Lacs No. of Regional Offices No. of Centres 37% 7,449 11,131 First Cyc
Slide 27: Healthy PAN India Presence
Healthy PAN India Presence Presence across 24 States and UT’s Uttar Pradesh Bihar Punjab Madhya Pradesh West Bengal AUM - 2,450 AUM – 1,335 AUM - 600 AUM - 597 AUM - 561 26.9% 14.6% 6.6% 6.6% 6.2% TOTAL Others 01 02 03 04 05 AUM – 9,115 AUM - 1,458 16.0% 100% Rajasthan Delhi & NCR Orissa Assam Harya
Slide 28: 3. 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 29: 4. 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 30: 5. We have a well-diversified Liability Profile…
5. We have a well-diversified Liability Profile… Large Lender Base Product-wise Mar’23 65 Active Lenders Top 10 Lending Partners % Share 5.3% State Bank of India 13% Term Loan & PTC 28.6% Bank of Maharashtra 9% NCD 50.6% Bank of Baroda 8% Direct Assignment IDFC First Bank Limited 5% 15.5% ECB Blue O
Slide 31: 6. Positive ALM with Ample Liquidity
6. Positive ALM with Ample Liquidity Healthy CRAR to Support Growth Opportunities Benefit of Positive ALM Continues 26.3 25.9 24.9 24.3 30.5% 27.8% 26.6% 25.3% 18.2 15.5 16.0 14.5 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 31st Mar’2
Slide 32: Successfully Navigated Crisis During Legacy of Over 30 Years
Successfully Navigated Crisis During Legacy of Over 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 26.6% currently • Real-time data • Raised Rs. 922 crore equity capital Learnings
Slide 33: Key Financial & Operational Metrices
Key Financial & Operational Metrices
Slide 34: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,163 1,383 1,257 1,224 1,2871 6,296 8,152 8,090 8,774 7,4492 13,005 12,726 12,705 24 11,831 22 23 23 23 1,495 1,325 1,790 1,537 11,1313 1,262 383 388 404 405 340 10,419 11,148 10,612 10,736 9,222 FY19 FY20 FY21 FY22 FY23
Slide 35: Business Details – Consolidated
Business Details – Consolidated Particulars Q4FY23 Q4FY22 YoY% Q3FY23 QoQ% AUM (Rs. crore) 9,115 7,617 19.7% 7,945 14.7% SCNL 7,929 6,409 23.7% 6,798 16.6% On-book AUM* 5,650 5,145 4,791 Assignment 2,258 1,204 1,985 Business Correspondence 21 60 22 SHFL 505 318 383(1) SFL – JLG 456 724 563 SFL – MSM
Slide 36: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,762 64.8% 1,401 1,262 58.0% 1,273 53.8% 49.7% FY20 FY21 FY22 FY23* FY20 FY21 FY22 FY23 NII and PAT (Rs. crore) Opex to Avg AUM (%) NII PAT 1,186 6.2% 6.3% 6.0% 5.3% 824 659 656 264 156 40 -14 FY20 FY21 FY22 FY23* FY20 FY21
Slide 37: Financial Details (Standalone)
Financial Details (Standalone)
Slide 38: Annexure - Financial Performance - Standalone
Annexure - Financial Performance - Standalone Particulars (Rs. crore) FY23 FY22 Q4FY23 Q4FY22 Q3FY23 Gross yield (1) 24.57% 18.44% 21.57% 21.10% 22.85% Financial Cost Ratio(2) 8.04% 8.86% 7.93% 9.53% 8.76% Net Interest Margin(3) 16.54% 9.58% 13.64% 11.57% 14.09% Operating Expense ratio(4) 6.25% 6.20
Slide 39: Annexure - P&L Statement - Standalone
Annexure - P&L Statement - Standalone Particulars (Rs. crore) Q4FY23 Q4FY22 YoY% Q3FY23 QoQ% FY23 FY22 YoY% Revenue Interest and Fee Income 298 263 268 1,094 1,109 Gain due to DA 69 39 88 210 50 Treasury Income 14 22 11 413* 65 BC Income 0 2 0 4 19 Other Operating Income 15 5 10 41 19 Total Revenue
Slide 40: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 41: Annexure - P&L Statement - SHFL
Annexure - P&L Statement - SHFL Particulars (Rs. crore) Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Revenue Interest and Fee Income 16.4 10.1 12.8 52.9 34.3 Treasury Income 0.6 0.2 0.5 2.0 0.8 Other income 2.5 1.4 3.3 7.0 3.0 Total Revenue 19.5 11.7 16.5 61.9 38.0 Expenses Finance cost 8.0 5.3 7.2 28.2 17.1 Empl
Slide 42: Annexure - P&L Statement - SFL
Annexure - P&L Statement - SFL Particulars (Rs. crore) Q4FY23 Q4FY22 FY23 FY22 Revenue Interest and Fee Income 25.6 26.3 102.6 90.5 Treasury Income 0.6 0.9 2.9 3.4 Other income 0.2 0.3 1.0 3.2 Total Revenue 26.4 27.5 106.5 97.1 Expenses Finance cost 5.4 3.9 18.5 12.5 Employee benefit expenses 13.0 1
Slide 43: Company Background
Company Background
Slide 44: Key Milestones
Key Milestones Business Timeline 2016 2017 2018 2019 2023 Received NBFC license for Satin AUM crossed milestone of Rs. SHFL commenced lending in 9,000 crore; Satin Finserv Reached 27.1 lacs active Finserv Ltd for MSME business; Started MSME Lending in FY17; Feb18; BC agreement with Limited and Taraa
Slide 45: 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 46: 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 47: 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 48: …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 49: SDGs in the Core of Our Community Connect Activities
SDGs in the Core of Our Community Connect Activities Supported education of less privileged students at GNA University, Punjab Supported the construction of a primary school/coaching center in the village of Funded towards the construction of the Girls Harswara, Uttar Pradesh, for the poor and Hoste
Slide 50: 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 51: 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 — Q4 FY2023 Earnings Presentation on 6ix