Satin Creditcare Network Ltd · NSE:SATIN

Satin Creditcare Network — FY2024 Earnings Presentation

53 slides from Satin Creditcare Network's earnings presentation, April 2024

  1. Slide 1: Investor Presentation April 2024

    Investor Presentation April 2024 Relentless Exploring Prospects. Growing footprint.

  2. Slide 2: Presentation Path and Cautionary Statement

    Presentation Path A B C D Stakeholder’s Digest: The Power Play: Data Dynamics: Showcasing Origins Odyssey: The Key Business Spotlighting Our Our Operational & Tale Behind Our Highlights Investment Strengths Financial Prowess Company 03 - 25 26 - 33 34 - 43 44 - 53 Cautionary Statement Any forward-lo

  3. Slide 3: Standalone: Surpassed Guidance via Focused Efforts towards Excellence

    Standalone: Surpassed Guidance via Focused Efforts towards Excellence FY24 FY24 Particulars (Guidance) (Actual) GLP Growth (%) 25%+ 33.6% NIM (%) 12.1% - 12.5% 13.2% Operating cost/AUM (%) 5.60% - 5.75% 5.60% Credit Cost (%) 1.25% - 1.50% 1.44% RoA (%) 3.50% - 4.00% 4.77% RoE (%) 17.5% - 19.0% 18.5%

  4. Slide 4: Reflecting on FY24 (1/3)

    Reflecting on FY24 (1/3) Consolidated Standalone Growing AUM Rs. 11,850 crore 30% YoY Rs. 10,593 crore 34% YoY Highest Yearly > Rs. 10,000 crore 30% YoY Rs. 9,691 crore 31% YoY Disbursement Highest Ever Rs. 5 crore Rs. 436 crore Rs. 423 crore 60% YoY Profitability (FY23) Robust Client 34.7 Lacs clie

  5. Slide 5: Reflecting on FY24 (2/3)

    Reflecting on FY24 (2/3) Consolidated Standalone Reduction in Opex to Avg AUM at 5.8% vs 6.3% Opex to Avg AUM at 5.6% vs 6.3% Opex ratios Cost to Income at 45.4% vs 56.5% Cost to Income at 42.6% vs 54.3% Impressive Rs. 9,969 crore 39% YoY Rs. 9,494 crore 39% YoY Funds Raised Diversified Portfolio Se

  6. Slide 6: Reflecting on FY24 (3/3) - Standalone

    Reflecting on FY24 (3/3) - Standalone Forayed into 2 new states Loan per client ratio at 1.0 as during the year; most on Dec’23; one of the lowest diversified amongst the peers amongst the Top 10 MFI’s present in 26 states & UTs MSME portfolio reduced to Rs. 293 crore as on Mar’24 (Rs. 392 Consisten

  7. Slide 7: Consolidated Performance Highlights (1/2)

    Consolidated Performance Highlights (1/2) (Rs. crore) AUM DISBURSEMENT ACTIVE CLIENTS (in Lacs) YoY YoY YoY +30% 11,850 +30% +22% 10,549 34.7 9,115 28.3 8,087 FY23 FY24 FY23 FY24 FY23 FY24 TOTAL REVENUE RoA & RoE OPEX to Avg AUM YoY +44% 2,241 FY24 - RoA: 4.8% I RoE: 21.6% YoY -51 bps 6.3% 5.8% 1,55

  8. Slide 8: Consolidated Performance Highlights (2/2)

    Consolidated Performance Highlights (2/2) Particulars FY24 FY23 Q4FY24 Q4FY23 Q3FY24 Gross yield (1) 21.37% 18.54% 22.58% 20.13% 22.53% Financial Cost Ratio(2) 8.60% 7.37% 8.79% 7.40% 9.33% Net Interest Margin(3) 12.78% 11.17% 13.78% 12.72% 13.20% Operating Expense ratio(4) 5.80% 6.31% 5.49% 6.27% 6

  9. Slide 9: SCNL and Subsidiaries' Performance

    SCNL and Subsidiaries’ Performance AUM (Rs. crore) 10,593 Disbursement Rs. 9,691 crore • Scaling AUM with strategic 9,811 YoY 7,929 +34% GNPA 2.5% precision QoQ PAT Rs. 423 crore • Continued focus on asset quality +8% CRAR 27.7% • Healthy capital position Q4FY23 Q3FY24 Q4FY24 756 Disbursement Rs. 45

  10. Slide 10: Focus Areas Going Ahead

    Focus Areas Going Ahead Maintaining a diversified portfolio Continuous investment in with a healthy proportion of secured technology enabled procedures to assets; subsidiaries are shaping up enhance operational efficiencies viz well and are operating independently e-sign through Iris etc. Enhancing

  11. Slide 11: Standalone Update

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  12. Slide 12: Update on Punjab Portfolio

    Update on Punjab Portfolio Total on-book portfolio in Punjab stands at Rs. 369 crore as on Mar’24 Overall PAR 1 in Punjab stands at Rs. 35 crore and PAR 90 at Rs. 19 crore Collection Efficiency in the state is ~97% for FY24 and ~92% for Q4FY24 Due to the local issues in the area, out of the total 61

  13. Slide 13: Ensuring Authentic KYC

    Ensuring Authentic KYC Demonstrating Resilience and Strength… Our Robust KYC Process… Geo-fencing (capturing Lat / Long coordinates) With the benefits of digitization, also emerge significant challenges that demand vigilant attention, particularly in the realm of security. One such challenge is the

  14. Slide 14: Sustainable Growth Aided by Healthy Customer Addition

    Sustainable Growth Aided by Healthy Customer Addition (Rs. crore) AUM On-book portfolio grew by 40.4% Standalone AUM crossed Rs. 10,000 YoY crore mark Off book reduced to 25% vs 29% as on Mar’23 Conscious de-growth Added 7.79 Lacs client Average Ticket Size for due to during the year; YoY growth FY2

  15. Slide 15: Portfolio Breakup

    Portfolio Breakup Geographical Split Loan Cycle-Wise Split 24% 25% 54% 10% 76% 11% Rural Urban Cycle 1 Cycle 2 Cycle 3 Cycle >=4 Purpose Wise Split Presence in Aspirational Districts 8% 2% 1% 13% 40% 77% 60% Agri and Allied Trading Services Production Present Non-present Others Source: Aspirational

  16. Slide 16: Operational Capabilities Backed by Robust Processes

    Operational Capabilities Backed by Robust Processes Loan Life Cycle Key Initiatives Benefits Digitized Onboarding Detailed HHI assessment • Better Portfolio Quality as OTP validations at client onboarding compared to Industry Onboarding & disbursement level Geo tagging at every touch point in the on

  17. Slide 17: Technology at the Core, Robust and Modernized

    Technology at the Core, Robust and Modernized Key Initiatives Benefits E-Sign Enhanced security and authentication Reduced paper usage and faster TAT Geo Tagging Technology Seamless onboarding process, enhancing the an overall customer experience “ENABLER” ISO Precise control over access and activit

  18. Slide 18: Optimizing Operational Efficiencies

    Optimizing Operational Efficiencies Loan Accounts / Branch Loan Accounts / Loan Officer 489 2,945 2,780 456 2,568 2,494 415 376 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 AUM (Rs. crore) / Branch Center Efficiency^ 8.3 6.9 7.0 12.8 5.9 10.6 10.6 10.2 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 18 Consideri

  19. Slide 19: Asset Quality Maintained

    Asset Quality Maintained PAR PAR 1 11.8% PAR 90 9.4% 8.4% 8.0% 3.8% 3.5% 3.3% 2.5% FY21 FY22 FY23 FY24 • On-book GNPA stood at Rs. 198 crore (2.5% of on-book portfolio) • The Company has sufficient on-book provisions amounting to Rs. 164 crore as on Mar’24, which is 2.1% of on-book portfolio. Provis

  20. Slide 20: 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 8.6% 5.7% 5.9% 6.0% 3.8% 3.6% 2.5% 1.5% NBFC-MFI (excl. Satin) SFBs Banks + Others SCNL^ 20 ^Data of SCNL for JLG on-book portfolio Data available for industry as of Fe

  21. Slide 21: Stable Financial Performance

    Stable Financial Performance (Rs. crore) Profit After Tax Opex to Avg AUM Rs. 423 crore 5.6% 423 6.2% 6.3% YoY Change YoY Change 5.3% 5.6% 264 + 60% - 65 bps Profit After Tax Opex to Avg AUM 40 FY21 FY22 FY23 FY24 4.8% 18.5% FY21^ FY22 FY23 FY24 -14 YoY Change YoY Change + 125 bps + 344 bps RoA RoE

  22. Slide 22: Optimal Liquidity and Robust Capitalization

    Optimal Liquidity and Robust Capitalization 39% YoY growth in funds raised during the period; ~69% on-book borrowing • CRAR of 27.7% as of Mar’24; well above regulatory Funds Raised 6,846 9,494 requirement (Rs. crore) • Book Value per Share at Rs. 217 on a consolidated basis 39% 31% • Sufficient liq

  23. Slide 23: Awards & Accolades

    Awards & Accolades Awarded Gold for the Best API Project at Recognized as a ‘Great Place to Work’ by the 2023 Treasury Management GPTW- India for the fifth consecutive year and International Awards Top 50 Best Workplaces second year in a row 23

  24. Slide 24: SHFL - Leveraging the Outreach through Affordable Housing

    SHFL - Leveraging the Outreach through Affordable Housing • 100% retail book; middle and low- • Opportunity to leverage on SCNL’s income group clients from Tier II vast geographical presence and below cities • Tapping the high income clients of • 26 active lenders, including NHB SCNL, with opportuni

  25. Slide 25: SFL - Leveraging the Outreach through Retail MSME

    SFL - Leveraging the Outreach through Retail MSME On-book AUM increased 45% Huge untapped potential of the missing middle YoY to reach Rs. 326 crore of small ticket business loans averaging <= Rs. 2 Lacs secured against collateral Leveraging SCNL Outreach – 2nd cycle Focus on secured retail MSME + c

  26. Slide 26: The Power Play: Spotlighting Our Investment Strengths

    The Power Play: Spotlighting Our Investment Strengths

  27. Slide 27: Satin's Competitive Edge

    Satin’s Competitive Edge Leading MFI Player With Diversified Financial Products catering to rural India Diversified Geographical Reach State of the Art Technology backed by robust IT infrastructure Strong Underwriting Capability Well-diversified Liability Profile Positive ALM with Ample Liquidity St

  28. Slide 28: Diversified Product Offerings

    Diversified Product Offerings Satin Creditcare Network Limited Satin Housing Finance Limited Satin Finserv Limited (1) Product features MFI(2) Housing Finance MSME as of Mar’24 Start Date May’08 (JLG) Feb’18 Mar’19 Ticket Size Range Upto Rs. 80,000 Rs. 100,000 – 4,000,000 Rs. 100,000 – 100,000,000 T

  29. Slide 29: Diversified Geographical Presence

    Diversified Geographical Presence Presence across 26 States and UTs 1,393 95 No. of Regional Offices No. of Branches 421 2.8 Lacs No. of Districts No. of Centers 96.4% Districts with <1% exposure Top 4 States 6.6% Top 4 States (56%) Uttar Pradesh 8.6% Next 6 states (28%) 26.7% Bihar West Bengal Rema

  30. Slide 30: Well-diversified Liability Profile

    Well-diversified Liability Profile Large Lender Base Product-wise Mar’24 76 Active Lenders 0.5% Top 10 Lending Partners % Share 7.3% State Bank of India 17% 11.7% Term Loan & PTC Bank of Baroda 9% Direct Assignment NCD SIDBI 7% 54.1% 26.5% ECB Bank of Maharashtra 6% Commercial Paper Bandhan Bank Lim

  31. Slide 31: Positive ALM with Ample Liquidity

    Positive ALM with Ample Liquidity Benefit of Positive ALM Continues 27.7 24.9 25.9 24.3 18.2 17.8 16.0 14.5 FY21 FY22 FY23 FY24 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 31st Mar’24 (Rs. crore) Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Total Inflows Liquidity at the begin

  32. Slide 32: Strong Management Team

    Strong Management Team HP Singh Chairman cum Managing Director Jugal Kataria Rakesh Sachdeva Manoj Agrawal Aditi Singh Anil Kwatra Group Controller CFO Deputy CFO Head - Strategy Head - Operations Sunil Yadav Dhiraj Jha Bhuvnesh Khanna Amit Sharma 32 Head – IT CRO WTD & CEO - SFL MD & CEO - SHFL

  33. Slide 33: Successfully Navigated Crisis During Legacy of Over Three Decades

    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 27.7% currently • Real-time data • Raised Rs. 1,259 crore equity capital Lea

  34. Slide 34: Data Dynamics: Showcasing Our Operational & Financial Prowess

    Data Dynamics: Showcasing Our Operational & Financial Prowess

  35. Slide 35: Key Operation Metrics

    Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,257 1,224 1,286 1,3931 8,090 8,774 7,449 9,3092 12,726 12,705 12,896 26 23 23 24 11,131 1,533 2,114 1,969 1,909 388 404 405 421 10,612 10,736 11,363 9,222 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Districts States Branche

  36. Slide 36: Business Details

    Business Details Particulars Q4FY24 Q4FY23 YoY% Q3FY24 QoQ% AUM (Rs. crore) 11,850 9,115 30.0% 11,074 7.0% SCNL 10,593 7,929 33.6% 9,811 8.0% On-book AUM 7,931 5,650 7,306 Assignment 2,662 2,258 2,497 Business Correspondence 0 21 8 SHFL 756(1) 505 49.6% 607 24.6% SFL 501 682 657 Retail MSME 326 226

  37. Slide 37: Financial Details (Standalone)

    Financial Details (Standalone)

  38. Slide 38: Key Metrics

    Key Metrics Gross Income (Rs. crore) Cost to Income Ratio 2,051 64.8% 1,753 58.0% 54.3% 1,273 1,262 42.6% FY21 FY22 FY23* FY24 FY21 FY22 FY23 FY24 NII and PAT (Rs. crore) Opex to Avg AUM NII PAT 1,177 1,218 6.2% 6.3% 5.6% 5.3% 659 656 423 264 40 -14 FY21 FY22 FY23* FY24 FY21 FY22 FY23 FY24 38 *There

  39. Slide 39: Financial Performance

    Financial Performance Particulars FY24 FY23 Q4FY24 Q4FY23 Q3FY24 Gross yield (1) 22.14% 19.55% 23.29% 21.13% 23.42% Financial Cost Ratio(2) 8.99% 8.04% 9.13% 7.93% 9.82% Net Interest Margin(3) 13.15% 11.51% 14.16% 13.20% 13.60% Operating Expense ratio(4) 5.60% 6.25% 5.27% 6.14% 5.94% Loan Loss Ratio

  40. Slide 40: P&L Statement

    P&L Statement Particulars (Rs. crore) FY24 FY23 Q4FY24 Q4FY23 Q3FY24 Revenue Interest and Fee Income 1,632.3 1,094.0 457.1 297.8 432.5 Gain due to DA 257.0 201.5 84.0 61.4 74.4 Treasury Income 89.5 412.6* 32.2 14.3 23.3 BC Income 0.1 4.0 0.0 0.2 0.0 Other Operating Income 71.6 41.2 20.5 15.3 17.4 To

  41. Slide 41: Financials (Subsidiaries)

    Financials (Subsidiaries)

  42. Slide 42: P&L Statement - SHFL

    P&L Statement - SHFL Particulars (Rs. crore) FY24 FY23 Q4FY24 Q4FY23 Q3FY24 Revenue Interest and Fee Income 67.0 52.9 17.3 16.4 16.2 Treasury Income 5.2 2.0 1.9 0.6 0.7 Other income 20.2 7.0 7.7 2.5 7.2 Total Revenue 92.3 61.9 26.9 19.5 24.1 Expenses Finance cost 44.3 28.2 11.6 8.0 11.6 Employee ben

  43. Slide 43: P&L Statement - SFL

    P&L Statement - SFL Particulars (Rs. crore) FY24 FY23 Q4FY24 Q4FY23 Q3FY24 Revenue Interest and Fee Income 115.1 102.6 29.6 25.6 30.9 Treasury Income 3.9 2.9 1.0 0.6 0.9 Other income 2.4 1.0 1.1 0.2 0.2 Total Revenue 121.4 106.5 31.7 26.4 32.1 Expenses Finance cost 26.4 18.5 7.5 5.4 6.3 Employee ben

  44. Slide 44: Origins Odyssey: The Tale Behind Our Company

    Origins Odyssey: The Tale Behind Our Company

  45. Slide 45: Key Milestones - Business

    Key Milestones - Business Reached 4.9 Lacs active Date of inception of Satin- Registers as NBFC clients & AUM of ~Rs. 580 October 16, 1990 with the RBI crore as on Mar’13; Converts Started JLG Model to NBFC-MFI in Nov’13; IPO and listing on DSE, Reached 8 Lacs active clients in May 2008 JSE and LSE(

  46. Slide 46: 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

  47. Slide 47: Capital Structure

    Capital Structure Promoter Group 25.7% Market Cap of Book Value^ Florintree Ventures LLP 36.2% ~ Rs. 2,700 crore* Rs. 217/ share Key Institutional Investors Other FII's No. of Equity No. of Bodies Corporate Shares Shareholders 15.2% Retail & Others 11.05 crore ~45,000 1.8% 11.1% 9.9% Market • 15 rou

  48. Slide 48: 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

  49. Slide 49: Customised Products as per Client Needs

    Customised Products as per Client Needs Long Term Loan Madhya Vriddhi Loan Income Generation Loan (Vriddhi) (Prarambh) Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 15,000 Rs. 31,000 – Rs. 80,000 Rs. 10,000 – Rs. 45,000 Tenure: 12 - 24 months Tenure: 24 - 30 months Tenure: 24 - 30 month

  50. Slide 50: Community Connect Activities Centered Around SDGs

    Community Connect Activities Centered Around SDGs Infrastructure Center Leader 01 Development To enrich the growth and advancement 02 Workshop In collaboration with Water.org, we of the students, faculty, and the larger conducted a center leader workshop in community of the GNA University, Moradabad

  51. Slide 51: Awards and Accolades

    Awards and Accolades  Mr. HP Singh bestowed with the ‘India’s Most Trusted Leader’ Award by GPTW, India  Mr. HP Singh 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  Mr. Su

  52. Slide 52: ESG - Being a Responsible Financial Institution

    ESG - Being a Responsible Financial Institution ENVIRONMENTAL SOCIAL GOVERNANCE Green Building • Our strength lies in our ground level • Board comprises of 8 members; 6 • Satin’s headquarters – a green building – is knowledge and the strong bond that we have Independent directors of which 1 is a wom

  53. Slide 53: 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 — FY2024 Earnings Presentation on 6ix