Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q2 FY2021 Earnings Presentation
47 slides from Satin Creditcare Network's earnings presentation, November 2020
Slide 1: Investor Presentation
Investor Presentation November 2020
Slide 2: Content / Cautionary Statement
Content 03 - 05 06 -09 10 - 25 COVID – 19 Business Update & New Overview and Key What makes Satin a Compelling Initiatives Performance Highlights Investment Story 26 - 39 40 - 46 Key Financial & Operational Metrices Company Background Cautionary Statement Any forward-looking statements about expecte
Slide 3: CoVID-19 Business Update New Initiatives
CoVID-19 Business Update New Initiatives
Slide 4: CoVID 19 Business Update
CoVID 19 Business Update Branch Operations & Centre Meetings • All branches were operational, and all staff has resumed work • Disbursed Rs. 632 crore in Q2FY21, majorly done to existing customers with strong repayment history • We have activated most of the centres • Focused on cashless collection
Slide 5: CoVID 19 Business Update
CoVID 19 Business Update Credit Cost and Provisioning • As of 30th Sep’20, on-book GNPA stood at 2.9% • We have made adequate provisions against default risk of our book under moratorium and other exigencies; As on 30 th Sep’20, on-book NNPA stood at -1.0% • Have made total Expected Credit Loss (ECL
Slide 6: Overview and Key Performance Highlights
Overview and Key Performance Highlights
Slide 7: Key Business Performance Highlights
Key Business Performance Highlights India’s leading NBFC-MFI with 31.1 lacs customers, 1,255 branches, 377 districts and 23 states, with Assets Under Management (AUM) of Rs. 7,667 crore for Q2FY21 Undergoing various measures for cost Successfully closed Rights Issue of Rs. Percentage of Promoter ple
Slide 8: Corporate Overview Standalone – Q2FY21
Corporate Overview Standalone – Q2FY21 Rs. 13 crore 3.5% 32.3 Lakh 1,025 PROFIT AFTER TAX RETURN ON EQUITY LOAN ACCOUNTS BRANCHES OUTSTANDING 0.7% Rs. 6,744 crore Rs. 632 crore RETURN ON ASSETS GROSS LOAN PORTFOLIO DISBURSEMENT 32.33% 2.7 Lakh Rs. 23,000 23 CAPITAL ADEQUACY NO. OF LOANS DISBURSED AV
Slide 9: Corporate Overview Consolidated – Q2FY21
Corporate Overview Consolidated – Q2FY21 Rs. 16 crore 4.2% Rs. 341 crore PROFIT AFTER TAX RETURN ON EQUITY REVENUES Rs. 185 crore Rs. 7,667 crore 31.1 Lakh NET INTEREST INCOME GROSS LOAN PORTFOLIO CLIENTS 0.8% 1,255 23 RETURN ON ASSETS BRANCHEES STATES & UT’s 9 Data for Q1FY21, RoA and RoE are calcu
Slide 10: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story 10
Slide 11: 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 12: Leading MFI player with differentiated Product Offerings
1. Leading MFI player with 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 Sep’20 Limited(2) Start Date May’08 (JLG) May’12 Feb’18 Mar’
Slide 13: With opportunities to leverage our customer reach
… With opportunities to leverage our customer 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 Product Financing Benefits Bicycle Loan Solar Products ▪ Enhances the productivity and incom
Slide 14: Diversified Geographical Presence
2. Diversified Geographical Presence …serving ~32 lacs Customers across India 58% 31 Lacs+ ~36 lacs Clients with Satin as Only No. Of Active Clients No. of Loan Accounts Lender* 377 ~84,000 No. of Districts No. of Villages 68 2.5 lacs No. of Regional Offices No. of Centres 41% 7,377 10,497 No. of Fi
Slide 15: Leading to increasing footprints
… Leading to increasing footprints % of total GLP GLP (Rs. crore) States FY16 Q2FY21 Q2FY21 UTTAR PRADESH 40.9% 22.3% 1,707 BIHAR 17.7% 16.0% 1,229 PUNJAB 12.7% 9.3% 716 2. Reducing exposure to traditional regions MADHYA PRADESH 15.5% 8.7% 666 UTTARAKHAND 3.2% 1.5% 117 MAHARASHTRA 1.6% 1.0% 79 TOTAL
Slide 16: 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 56% over 4 years Limiting Exposure per district 77.3 Average exposure per district % % of Top 10 Districts to AUM 12.7 67.7 -21% 10.1 56.3 27 15.5 58.6 57.7 10.2 56.3 0.45 19.2 21
Slide 17: 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 18: Centralized Shared Services
Centralized Shared Services Centralized Shared Services Branch n1 Centralized Shared Psychometric Service Center ✓ KYC Process followed Test Loan CB Check Branch n2 ✓ Tele Verification Application ABM – n1 Response Report & KYC Collection In case of rejection, transaction Operations at Branch would
Slide 19: 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 verifi
Slide 20: 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 92 Feedback bas
Slide 21: We have a well-diversified Liability Profile
5. We have a well-diversified Liability Profile… … insulated from Capital Market Turbulence Product-wise Sep’20 Large Lender Base 3% 61 Active Lenders 0% Top 10 Funders % Share as on 30th Sep’20 25% Term Loan NCD NABARD 14% 50% Buyout Indian Bank 10% Commercial paper State Bank of India 7% 22% ECB B
Slide 22: Strong Capitalization with Ample Liquidity
6. Strong Capitalization with Ample Liquidity Healthy CRAR to support Growth Opportunities Benefit of positive ALM continues 26.3 25.5 30.45% 32.33% 22.3 22.1 28.49% 21.5 18.4 21.18% 15.5 11.7 12.8 8.4 8.5 9.0 FY18 FY19 FY20 1HFY21 FY16 FY17 FY18 FY19 FY20 1HFY21 Avg. maturity of Assets Avg. maturit
Slide 23: With improving asset quality
… With improving asset quality On-book Provisions & NNPA (Rs. crore) On- book GNPA, Provisions & NNPA (%) 133 14.9% 152 113 5.0% 177 156 147 5.0% 9.9% 0.1% 4.0% 3.2% 2.9% 2.4% 4.9% 1.7% -5 3.4% 3.2% 3.9% -34 -45 2.3% -0.2% -0.8% -1.0% Mar-20 Jun-20 Sep-20 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Sep-20 On
Slide 24: Diversification with allied product offerings
Diversification with allied product offerings Taraashna Financial Services Ltd - TFSL Satin Housing Finance Ltd (SHFL) Satin Finserv Limited (SFL) » 100% retail book comprising of: » Incorporated in Aug’18, got license from RBI to » Acting as a business correspondent, TFSL provides » Affordable home
Slide 25: Successfully Navigated Crisis During Legacy of 30 Years
Successfully Navigated Crisis During Legacy of 30 Years Learnings from Demonetization Di-risking geographic Reduction in Top 4 state District Diversification concentration (No. of States) contribution ❑ Implementation of best-in-class technology + 7 states • Reduced TAT +68% • Real-time data 23 377
Slide 26: Key Financial & Operational Metrices
Key Financial & Operational Metrices
Slide 27: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,2551 1,383 8,152 1,163 6,382 6,296 7,3772 767 995 23 23 4,481 13,005 22 11,831 1,495 10,4973 18 1,325 16 9,004 1,229 6,910 1,344 383 377 340 1,109 302 10,419 11,148 235 8,965 7,653 5,801 FY17 FY18 FY19 FY20 1HFY21 FY17
Slide 28: Key Consolidated Financials
Key Consolidated Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,445 1,503 66.6% 58.3% 57.0% 53.4% 52.5% 311 341 366 Q2FY20 Q1FY21 Q2FY21 FY19 FY20 Q2FY20 Q1FY21 Q2FY21 FY19 FY20 NII and PAT (Rs. crore) Opex to GLP (%) 914 7.1% 803 6.7% 6.3% NII 4.9% 5.3% PAT 218 185 201 150 155 54 13
Slide 29: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,373 1,401 63.3% 54.9% 54.7% 50.8% 49.7% 290 315 345 Q2FY20 Q1FY21 Q2FY21 FY19 FY20 Q2FY20 Q1FY21 Q2FY21 FY19 FY20 NII and PAT (Rs. crore) Opex to GLP (%) 824 6.8% 6.5% 734 6.0% NII 5.1% 4.7% PAT 199 164 195 134 156 55 13 1
Slide 30: Financial & Operational Details (Consolidated)
Financial & Operational Details (Consolidated)
Slide 31: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% AUM (Rs. crore) 7,667 7,182 6.7% 8,119 -5.6% On-Book AUM* 4,572 4,140 4,653 Securitization 39 113 46 Assignment 1,699 1,662 2,009 Business Correspondence 473 612 519 TFSL - Business Correspondence 639 591 677 SHFL
Slide 32: Annexure – P&L Statement – Consolidated
Annexure – P&L Statement – Consolidated Particulars (Rs. crore) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ % FY20 FY19 YoY% Revenue Interest and Fee Income 251 238 258 994 1,116 DA Income 44 57 14 236 133 Treasury Income 20 33 20 117 95 BC Fees 21 30 12 127 87 Other Operating Income 3 9 7 29 13 Total Revenue 341
Slide 33: Financial Details (Standalone)
Financial Details (Standalone)
Slide 34: Annexure - Financial Performance – Standalone
Annexure - Financial Performance – Standalone Particulars (Rs. crore) 1HFY21 Q2FY21 Q2FY20 Q1FY21 FY20 FY19 Gross yield (1) 17.30% 18.07% 21.44% 16.08% 20.61% 23.97% Financial Cost Ratio(2) 8.78% 8.67% 9.05% 8.64% 8.49% 11.15% Net Interest Margin(3) 8.52% 9.40% 12.39% 7.44% 12.12% 12.81% Operating E
Slide 35: Annexure - P&L Statement – Standalone
Annexure - P&L Statement– Standalone Particulars (Rs. crore) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ % FY20 FY19 YoY% Revenue Interest and Fee Income 241 233 248 966 1,113 DA Income 44 57 14 236 133 Treasury Income 18 31 19 112 91 BC Income 7 17 3 62 25 Other Operating Income 5 8 5 25 11 Total Revenue 315 345
Slide 36: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 37: Annexure - P&L Statement – TFSL
Annexure - P&L Statement – TFSL Particulars (Rs. crore) Q2FY21 Q2FY20 Q1FY21 FY20 FY19 Revenue Total Revenue 18.2 10.2 10.4 69.8 68.3 Expenses Finance Cost 1.1 0.9 0.9 3.2 2.5 Employee Benefit Expenses 8.9 8.5 8.5 38.3 35.3 Credit Cost 0.5 0.8 0.8 13.4 5.7 Other Expenses 2.7 1.6 1.6 14.4 11.1 Deprec
Slide 38: Annexure - P&L Statement – SHFL
Annexure - P&L Statement – SHFL Particulars (Rs. crore) Q2FY21 Q2FY20 Q1FY21 FY20 FY19 Revenue Interest and Fee Income 5.6 3.9 5.1 16.8 4.5 Treasury Income 0.3 0.5 0.4 1.9 1.0 Other income 0.3 0.2 0.1 2.3 1.6 Total Revenue 6.2 4.6 5.7 21.0 7.1 Expenses Finance cost 3.1 1.7 3.3 8.3 1.1 Employee benef
Slide 39: Annexure - P&L Statement – SFL
Annexure - P&L Statement – SFL Particulars (Rs. crore) Q2FY21 Q2FY20 Q1FY21 FY20 Revenue Interest and Fee Income 5.57 2.28 5.78 13.59 Treasury Income 0.14 0.09 0.15 0.24 Other income 0.31 0.02 0.06 0.18 Total Revenue 6.02 2.39 5.99 14.02 Expenses Finance cost 1.03 0.34 0.99 1.76 Employee benefit exp
Slide 40: Company Background
Certified Company Background
Slide 41: Key milestones: Crossed the USD 1 billion AUM mark
Key milestones: Crossed the USD 1 billion AUM mark 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
Slide 42: Key milestones: Fund Raising Timeline
Key milestones: Crossed the USD 1 billion AUM mark 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 warra
Slide 43: Who we are
Who we are 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 & Mediu
Slide 44: With focus only on Micro-Finance Products
… With focus only on Micro-Finance Products Income Generation Loan Long Term Loan Product Financing/Wash Emergency Loan (Prarambh) (Vriddhi) Loan (Pragati) Ticket Size : Ticket Size : Ticket Size : Ticket Size : Rs. 8,000 – Rs. 30,000 Rs. 31,000 – Rs. 50,000 Rs. 1,099 – Rs. 15,000 Rs. 10,000 – Rs. 3
Slide 45: 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 for the awarded an by local community in Assam and Odisha appreciation administration Distributed masks, ration and hygiene kits across
Slide 46: Awards and Accolades
Awards and Accolades ▪ Mr. HP Singh, CMD, was conferred the ‘Golden Globe Tiger Awards’ at an 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 Decemb
Slide 47: 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 – 222) www.satincreditcare.com
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