Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q4 FY2020 Earnings Presentation
65 slides from Satin Creditcare Network's earnings presentation, June 2020
Slide 1: Investor Presentation June 2020
INVESTOR PRESENTATION June 2020 BUILDING A DIFFERENCE BSE: 539404 | NSE: SATIN TO MAKE A DIFFERENCE Corporate Identity No. L65991DL1990PLC041796
Slide 2: Content
Content 03 - 09 10 -14 15 - 34 COVID – 19 Business Update & New Overview and Key What makes Satin a Compelling Initiatives Performance Highlights Investment Story 35 - 38 39 - 57 58 - 65 Multiple Growth Financials of the Company & Its Subsidiaries Company Background Levers Cautionary Statement Any f
Slide 3: COVID-19 Business Update & New Initiatives
COVID-19 Business Update & New Initiatives 3
Slide 4: COVID-19 Business Update
COVID-19 Business Update The World Health Organisation declared COVID-19 as a pandemic on March 11, 2020 and India has been under a national lockdown since March 25, 2020. Below are the key highlights on the same: ▪ As per government directives to slowly open up the lockdown restrictions along with
Slide 5: COVID-19 Business Update
COVID-19 Business Update Credit ▪ Additional credit cost of Rs. 82.76 crore has been accounted for COVID-19 impact Cost/Provisions ▪ Advising Employees about the precautions to be taken at individual and community level and have assured them of our support through this period ▪ All safety protocols
Slide 6: COVID-19 Business Update
COVID-19 Business Update ▪ In the last week of March raised Rs. 400 crore, despite nationwide lockdown. Raised Rs. 344 crore post March 31st 2020 ▪ As of 31st March 2020, Company has Rs. 1,600 crore as liquidity and additionally, sanctioned but undrawn lines are of Rs. 871 crore, one of the highest
Slide 7: Taking further steps to achieve completely digital ecosystem
Taking further steps to achieve completely digital ecosystem Modes enabled during COVID-19 for Under progress - Addition of Satin on contactless repayments via popular BBPS (Bharat Bill Payment System) :: UPI apps like Google pay, Paytm, Phonepe One Stop Solution by NPCI for recurring etc. payments
Slide 8: Steps taken to improve connect with customers during COVID-19
Steps taken to improve connect with customers during COVID-19 Connect with Customers Purpose of new product: New “Customer Service App” New Product launched Tele-collection activity by CSS in • Rebuild income generation activities launched to increase digital as COVID-19 containment zones impacted d
Slide 9: Socially responsible at the time of COVID-19 and Amphan
Socially responsible at the time of COVID – 19 and Amphan Activities done during COVID-19: Contribution of Rs. 10 lacs to PM Cares Fund Donation of Ration and other essential items for Covid and Amphan Distribution of Masks and other safety items Contribution of Rs. 5 lacs to Assam government for fi
Slide 10: Overview and Key Performance Highlights
Overview and Key Performance Highlights 10
Slide 11: Key Business Performance Highlights (1/2)
Key Business Performance Highlights (1/2) India’s leading NBFC-MFI with 34.6 lacs customers, 1,383 branches, 397 districts and 23 states, with Assets Under Management (AUM) of Rs. 8,174 crore for FY20 RoA 2.2%, RoE 11.9% and CRAR 30.49% in FY20 Awarded Companies with Great Manager award and National
Slide 12: Key Business Performance Highlights (2/2)
Key Business Performance Highlights (2/2) Long term Credit Rating CARE A-(stable ) and ICRA A-(stable); Short term rating CARE A1 and ICRA A1 (upgraded from ICRA A2+), Grading MFI1 (highest order) Social rating sA from Microfinanza, C1 Code of Conduct Assessment (COCA) from ICRA, the highest grade -
Slide 13: Corporate Overview Standalone – FY20
Corporate Overview Standalone – FY20 Rs. 156 crore 2.3% 12.0% 30.49% PAT ROA ROE CRAR 7,220 crore Rs. 8,045 crore Rs. 25.6 lacs 1,140 GLP Disbursement No. of Loans disbursed Branches Rs. 33,000 23 36.2 lacs 98.8% Average Ticket Size States & UTs Loan Accounts Outstanding Collection Efficiency 13
Slide 14: Corporate Overview Consolidated – FY20
Corporate Overview Consolidated – FY20 Rs. 155 crore 2.2% 11.9% PAT ROA ROE Rs. 8,174 crore 1,503 crore Rs. 917 crore Rs. GLP Revenue NII 1,383 23 34.6 lacs Branches States & UTs Clients Data for FY20, RoA and RoE are calculated on annualized basis 14
Slide 15: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story 15
Slide 16: Who we are
Who we are Microfinance is primarily based on the Joint Liability Group (JLG) model, to provide financial assistance and enable women from rural and semi-urban areas to achieve self sustainability CREATING A NICHE BY BEING A ONE STOP FINANCIAL SERVICES PROVIDER FOR OUR CUSTOMERS Social impact financ
Slide 17: Awarded excellence in clean energy finance
Awarded excellence in clean energy finance Awarded Certificate of Excellence in Clean Energy Finance Satin is one of the newest partners of Microenergy Credits 01 – (MEC) Satin’s clean energy programme is an illustration of its 02 dedication to serve the bottom of pyramid section of society by provi
Slide 18: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story 1. Leading MFI player with differentiated Product Offerings 2. Diversified Geographical Reach 3. Technology Prowess 4. Robust Underwriting Processes 5. Well-diversified liability profile 6. Ample Liquidity & Positive ALM 7. Strong & Experienced Manageme
Slide 19: 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 Mar’20 Limited(2) Start Date May’08 (JLG) May’12 Feb’18 Mar’
Slide 20: With Focus Only on Micro-Finance Products
… With focus only on Micro-Finance Products Income Generation Loan Long Term Loan Product Financing/Wash (Prarambh) Festival Loan (Vriddhi) Loan Ticket Size : Ticket Size : Ticket Size : Ticket Size : Rs. 8,000 – Rs. 30,000 Rs. 6,000 Rs. 31,000 – Rs. 50,000 Rs. 1,099 – Rs. 15,000 Tenure : 12/24 mont
Slide 21: 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 22: Diversified Geographical Presence
2. Diversified Geographical Presence …serving ~36 lacs Customers across India 58% 34.6 lacs 39.9 lacs Clients with Satin as Only No. Of Active Clients No. of Loan Accounts Lender* 397 87,000+ No. of Districts No. of Villages 68 2.6 lacs No. of Regional Offices No. of Centres 44% 8,152 13,005 No. of
Slide 23: Leading to increasing footprints
… Leading to increasing footprints % of total GLP GLP (Rs. crore) States Mar’20 FY15 FY20 UTTAR PRADESH 43.3% 23.0% 1,884 BIHAR 17.2% 16.4% 1,339 MP 18.5% 9.2% 753 2. Reducing exposure to traditional regions DELHI & NCR 5.1% 3.5% 283 UTTARAKHAND 4.0% 1.6% 130 TOTAL 88.1% 53.7% 4,388 % of total GLP G
Slide 24: And de-risking geographical concentration
… And de-risking geographical concentration To have become a PAN India Player Share of Top 4 States Reduced from 86% to 58% over 5 years Limiting Exposure per district 85.9 Average exposure per district % % of Top 10 Districts to AUM 12.7 77.3 10.1 -36% 27 67.7 0.50 15.5 58.2 10.2 56.3 0.45 19.2 21
Slide 25: 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 26: Centralized Share Services (Vision, Scope & Task Criteria)
Centralized Share Services (Vision, Scope & Task Criteria) Aimed to maximize the effectiveness of the business process and policies by providing and ensuring high quality services to our clients as well as our stakeholders Credit Risk Management and Data Customer Services Quality Maintenance Loan ap
Slide 27: Centralized Shared Services
Centralized Shared Services Branch n1 Centralized Shared Branch n1 Psychometric Service Center Test Loan CB Check Branch n2 Application Branch n2 ABM – n1 ABM – n2 & KYC Collection In case of rejection, transaction In case of Rejection, transaction Operations at Branch would re-flow to Branch for re
Slide 28: 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 29: Robust Underwriting Processes
4. Robust Underwriting Processes 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 Rotating responsibility Shuffling CSOs every 9 months and transferring every 18 months to reduce huma
Slide 30: Full-fledged in-house Internal Audit
…Full-fledged in-house Internal Audit Full-fledged in-house Internal Audit Feedback based 101 Compliance Audit Zonal Auditors & Regional Auditors 3,876 Audits completed in last year 100% Digital on Audit Reports and Findings Quarterly Audit 18 man-days field audit per auditor per month Regional Offi
Slide 31: Coupled with robust underwriting techniques
… Coupled with robust underwriting techniques Hit Rate for all Products – Q4FY20 CB Rejection Reason – Q4FY20 14% 16% 30% 34% 19% 1% 86% >1 MFI Over Indebtedness >3 Lenders Defaulter Hit No Hit Others SCNL Guidelines Rejection Rate for all products is ~18% for Q4FY20 Limit RBI Guidelines MFIN Guidel
Slide 32: We have a well-diversified Liability Profile
5. We have a well-diversified Liability Profile… … insulated from Capital Market Turbulence Product-wise Mar’20 Large Lender Base 3% 64 Active Lenders 0% Term Loan Top 10 Funders % Share as on 31st Mar’20 29% NCD NABARD 12% 53% Buyout Commercial paper State Bank of India 11% 15% ECB Indian Bank 8% B
Slide 33: Strong Capitalization with Ample Liquidity
6. Strong Capitalization with Ample Liquidity Healthy CRAR to support Growth Opportunities Benefit of positive ALM continues 26.3 30.49% 22.3 22.1 28.49% 21.5 18.4 21.18% 15.5 11.7 8.4 8.5 9.0 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as
Slide 34: With improving asset quality – Yearly
… With improving asset quality – Yearly PAR 90 (GNPA), Provisions & NNPA - (Rs. Crs) PAR 90 (GNPA), Provisions & NNPA - (%) 522.5 14.4% 348.6 9.6% 225.7 211.8 184.5 4.4% 212.7 105.6 164.1 2.9% 2.9% 173.9 4.8% 4.2% 1.7% 2.3% 78.8 47.7 1.2% 0.6 13.0 0.3% Mar-17 Mar-18 Mar-19 Mar-20 Mar-17 Mar-18 Mar-1
Slide 35: Multiple Growth Levers
Tsp MULTIPLE GROWTH LEVERS..
Slide 36: Industry Growth Drivers
Industry Growth Drivers Massive growth Healthy growth in Increased Government focus potential of MSME Large unmet affordable housing penetration of on digitisation and BC sectors demand in the finance segment technology in industry rural areas 36
Slide 37: Industry Performance
Industry Performance 13,844 (+27% Y-o-Y) 112,616 (+31% Y-o-Y) 3.1 crore (+31% Y-o-Y) Branch Network Employee Base Total Clients 3.7 crore (+32% Y-o-Y) Rs. 28,623 (+15% Y-o-Y) Rs. 67,320 crore (+44% Y-o-Y) Total Loan Accounts Average Ticket Size Assets Under Management (AUM) Off Balance Sheet Balance
Slide 38: 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 39: Key Financial & Operational Metrics
KEY FINANCIAL & OPERATIONAL METRICS 39
Slide 40: Key Operation Metrics (1/2)
Key Operation Metrics – (1/2) Districts, States and Branches Employees & Loan Officers 1,3831 1,163 8,1522 995 6,926 431 767 23 13,0053 22 6,382 11,831 1,495 18 4,481 1,325 16 16 9,004 2,684 6,910 1,344 383 340 1,109 302 10,419 11,148 215 235 7,653 5,801 3,918 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18
Slide 41: Key Operation Metrics (2/2)
Key Operation Metrics – (2/2) Steady Growth seen in Disbursement Disbursement1 (Rs. crore) & No. of Loans1 (‘000) Satin JLG loans - Average Ticket Size (Rs.) 2,555 2,339 33,000 1,816 30,000 1,566 1,689 26,000 24,000 23,000 8,045 5,572 6,252 3,606 3,594 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY
Slide 42: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,373 1,401 57.7% 50.8% 49.9% 46.9% 44.9% 347 376 330 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 NII and PAT (Rs. crore) Opex to GLP (%) 827 6.9% 6.4% 6.5% 734 6.0% 6.1% NII PAT 206 241 179 195 156 55 48 1
Slide 43: Financial & Operational Details (Consolidated)
FINANCIAL & OPERATIONAL DETAILS (Consolidated) 43
Slide 44: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q4FY20 Q4FY19 YoY% Q3FY20 QoQ% AUM (Rs. crore) 8,174 7,068 15.6% 7,284 12.2% On-Book AUM* 4,621 4,459 3.6% 4,092 12.9% Securitization 46 429 -89.2% 34 34.2% Assignment 2,056 1,281 60.5% 1,776 15.7% Business Correspondence 543 633 -14.2% 522 4.0%
Slide 45: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q4FY20 Q4FY19 YoY% Q3FY20 QoQ% No. of Employees 13,005 11,831 9.9% 12,971 0.3% SCNL 11,148 10,419 7.0% 11,184 -0.3% TFSL 1,495 1,325 12.8% 1,477 1.2% SHFL 216 83 160.2% 182 18.7% SFL 146 4 - 128 14.1% No. of Loan Officers 8,152 6,959 17.1% 8,225
Slide 46: Annexure – P&L Statement – Consolidated
Annexure – P&L Statement – Consolidated Particulars (Rs. crore) Q4FY20 Q4FY19 YoY% Q3FY20 QoQ % FY20 FY19 YoY% Revenue Interest and Fee Income 257 239 7.7% 250 2.9% 994 1,116 -11.0% DA Income 85 48 78.8% 56 53.0% 236 133 76.9% Treasury Income 23 30 -25.2% 32 -29.7% 117 95 23.7% BC Fees 35 28 23.3% 3
Slide 47: Financial & Operational Details (Standalone)
FINANCIAL & OPERATIONAL DETAILS (Standalone) 47
Slide 48: Annexure - Operational Details – Standalone (Quarterly)
Annexure - Operational Details – Standalone (Quarterly) Particulars Q4FY20 Q4FY19 YoY% Q3FY20 QoQ % Gross AUM (Rs. crore) 7,220 6,374 13.3% 6,390 13.0% No. of districts 383 340 12.6% 371 3.2% No. of branches 1,140 977 16.7% 1,110 2.7% No. of States of operation 23 22 4.5% 22 4.5% No. of Employees 11
Slide 49: Annexure - Operational Details – Standalone (Quarterly)
Annexure - Operational Details – Standalone (Quarterly) Particulars Q4FY20 Q4FY19 YoY% Q3FY20 QoQ % Productivity Metrics for MFI lending Gross AUM/ Branch (Rs. crore) 6.1 6.3 -2.9% 5.5 10.1% Gross AUM/ Loan Officer (Rs. crore) 1.0 1.0 -1.0% 0.9 15.4% Disbursement/ Branch (Rs. crore) 2.2 2.2 -3.2% 1.
Slide 50: Annexure - Financial Performance – Standalone
Annexure - Financial Performance – Standalone Particulars (Rs crore) FY20 Q4FY20 Q4FY19 Q3FY20 FY19 Gross yield (1) 20.61% 22.07% 22.07% 21.70% 23.97% Financial Cost Ratio(2) 8.44% 7.92% 10.10% 8.85% 11.15% Net Interest Margin(3) 12.17% 14.15% 11.98% 12.86% 12.81% Operating Expense ratio(4) 6.07% 6.
Slide 51: Annexure - P&L Statement – Standalone
Annexure - P&L Statement– Standalone Particulars (Rs crore) Q4FY20 Q4FY19 YoY% Q3FY20 QoQ % FY20 FY19 YoY% Revenue Interest and Fee Income 247 237 4.3% 242 2.2% 966 1,113 -13.2% DA Income 85 48 78.8% 56 53.0% 236 133 76.9% Treasury Income 21 29 -27.3% 31 -30.4% 112 91 22.0% BC Income 14 14 1.0% 15 -
Slide 52: Financial & Operational Details (Subsidiaries)
FINANCIAL & OPERATIONAL DETAILS (Subsidiaries) 52
Slide 53: Annexure - Operational Details – TFSL
Annexure - Operational Details – TFSL Particulars Q4FY20 Q4FY19 YoY% Q3FY20 QoQ% Gross AUM (Rs. crore) 704 604 16.5% 646 9.3% Disbursement during the period (Rs. crore) 211 206 2.4% 213 -1.2% No. of loans disbursed during the period 66,450 72,115 -7.9% 68,586 -3.1% No. of Active Customers 373,779 39
Slide 54: Annexure - P&L Statement – TFSL
Annexure - P&L Statement – TFSL Particulars (Rs crore) Q4FY20 Q4FY19 YoY% Q3FY20 QoQ % FY20 FY19 YoY% Revenue Total Revenue 22.2 16.4 1.4% 17.2 20.17% 69.8 68.3 2.2% Expenses Finance Cost 0.8 1.1 141.2% 0.9 -16.5% 3.2 2.5 28.4% Employee Benefit Expenses 9.4 8.7 8.5% 9.7 5.1% 38.3 35.3 8.3% Credit Co
Slide 55: Annexure - Operational Details – SHFL
Annexure - Operational Details – SHFL Particulars Q4FY20 Q4FY19 YoY% Q3FY20 QoQ% Gross AUM (Rs. crore) 139 79 75.7% 138 0.4% Average Ticket Size (Rs) 1,257,000 1,453,000 -13.5% 1,268,000 -0.9% Disbursement (Rs. crore) 6 34 -82.9% 26 -77.2% CRAR (%) 125.89 111.1 - 133.78 - No. of Branches 15 5 200.0%
Slide 56: Annexure - Financial Details – SHFL
Annexure - Financial Details– SHFL Particulars (Rs crore) Q4FY20 Q4FY19 YoY% Q3FY20 QoQ % FY20 FY19 YoY% Revenue Interest and Fee Income 5.1 2.2 127.6% 4.6 11.3% 16.8 4.5 277.4% Treasury Income 0.6 0.4 52.4% 0.5 32.4% 1.9 1.0 83.4% Other income 0.8 1.0 -18.0% 1.1 -27.5% 2.3 1.6 43.1% Total Revenue 6
Slide 57: Annexure - Financial & Operational Details – SFL
Annexure - Financial & Operational Details – SFL Particulars Q4FY20 Particulars (Rs crore) Q4FY20 FY20 Gross AUM (Rs. crore) 111 Revenue Interest and Fee Income 5.72 13.59 Average Ticket Size (Rs) 996,500 Treasury Income 0.06 0.24 Disbursement (Rs. crore) 10 Other income 0.08 0.18 No. of Loan Disbur
Slide 58: Company Background
Tsp COMPANY BACKGROUND
Slide 59: 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 60: Key milestones: Fund Raising Timeline
Key milestones: Crossed the USD 1 billion AUM mark Fund Raising Timeline 2015 2016 2017 2018 2019 ▪ 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);
Slide 61: Differentiated Investment Choice
Differentiated Investment Choice... Investor confidence Marquee Shareholder Base As on Mar 31, 2020 ▪ 7 rounds of equity capital raised with marquee investors ▪ Profitable exit to 4 investors ▪ QIP: Rs. 250 crore from marquee institutions in Oct 2016, Rs. 150 crore from large domestic MFs in Oct 201
Slide 62: Making a Difference to the Community
Making a Difference to the Community Women Financial Empowerment Health Check-up Camps Financial Awareness Camps Skill Development Training Workshops 5 Free health check-up camps for the 9 Awareness camps in Sivasagar region 6 Skill development trainings in 6 Workshops for our clients in 5 states wi
Slide 63: 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 64: 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 64
Slide 65: Thank You
Thank You SATIN CREDITCARE NETWORK LTD. Reaching out!
Satin Creditcare Network — Q4 FY2020 Earnings Presentation on 6ix