Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q3 FY2024 Earnings Presentation
50 slides from Satin Creditcare Network's earnings presentation, Feb 2, 2024
Slide 1: Intimation of Investor Presentation to Stock Exchanges
February 02, 2024 To, The Manager, The Manager, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, C-1, Block G, 25th Floor, P. J. Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai-400051 Mumbai – 400001 Symbol: SATIN Scrip Code: 539404 Sub: Investor Presentation Dear Si
Slide 2: Investor Presentation February 2024
Investor Presentation February 2024 Relentless Exploring Prospects. Growing footprint.
Slide 3: Presentation Path and Cautionary Statement
Presentation Path 03 - 19 20 - 29 Business Update Satin a Compelling Investment Story 30 - 39 40 - 49 Key Financial & Operational Company Background Metrics Cautionary Statement Any forward-looking statements about expected future events, financial and operating results of the Company are based on c
Slide 4: Key Developments & Updates
Key Developments & Updates Successfully completed equity infusion of Rs. 250 crore via QIP; oversubscribed 1.9x. Strong Equity Infusion response from marquee domestic and global investors. Long Term credit rating upgraded to A (Stable) by ICRA from A- (Stable) affirming the strong Rating Upgrade per
Slide 5: Consolidated Highlights
Consolidated Highlights (YoY change) Rs. 11,074 crore Rs. 1,594 crore Assets Under Management Total Revenue Up by 39% Up by 42% 01 05 Rs. 7,445 crore Rs. 308 crore Disbursement 02 06 Profit after Tax Up by 41% Up by 428% Snapshot for 9MFY24 34.2 Lacs 03 07 4.5% Active Clients Return on Assets Up by
Slide 6: SCNL and Subsidiaries' Performance
SCNL and Subsidiaries’ Performance Holding MFI Company MSME Arm Affordable Housing AUM (Rs. crore) 764 567 607 9,811 8,894 Running down 6,798 YoY YoY +44% the BC Book to 383 +58% 657 adhere to 638 QoQ Principal QoQ +10% Business Criteria +7% Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3
Slide 7: Focus Areas Going Ahead
Focus Areas Going Ahead Maintaining a diversified Continuous investment in portfolio with a healthy technology enabled proportion of secured procedures to enhance assets operational efficiencies viz e-sign through Iris etc. Priorities Enhancing our risk Co-lending agreements; framework by opens door
Slide 8: Standalone Update
Standalone Update
Slide 9: Strong & Consistent Performance
Strong & Consistent Performance Ahead of the outlined growth path, Asset Growth Driven by a healthy mix of new client reaching a growth rate higher than Continues addition and increase in ticket size guidance of 25% Superior Asset Quality Better than the industry average PAR Stage-3 Provision Covera
Slide 10: Healthy Growth in Disbursement & AUM
Healthy Growth in Disbursement & AUM (Rs. crore) Disbursement 56% YoY 23% QoQ AUM 44% YoY 10% QoQ 9,811 2,698 8,367 8,894 2,546 7,929 1,980 2,202 6,417 6,798 1,564 1,725 6,389 1,554 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 • Disbursed Rs. 1,00
Slide 11: Optimizing Operational Efficiencies
Optimizing Operational Efficiencies Loan Accounts / Branch Loan Accounts / Loan Officer YoY YoY +20% +15% 447 2,770 2,838 440 2,664 437 2,357 2,494 415 QoQ 391 QoQ +2% +2% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 AUM (Rs. crore) / Branch AUM (Rs. crore) / Loan Officer Yo
Slide 12: Improving Asset Quality
Improving Asset Quality PAR 1 PAR 90 & ECL 9.2% PAR 90 ECL % 4.3% 4.0% 3.9% 5.8% 4.9% 3.3% 3.8% 3.5% 2.5% 2.4% 2.4% 3.0% 3.2% 2.1% 2.1% 2.4% 1.8% 1.3% 1.5% 1.5% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 • On-book GNPA stood at Rs. 175 crore (2.
Slide 13: 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 7.8% 4.8% 5.8% 4.8% 3.4% 3.0% 2.1% 1.0% NBFC-MFI (excl. Satin) SFBs Banks + Others SCNL^ 12 ^Data of SCNL for JLG on-book portfolio Data available for industry as of No
Slide 14: Stable Financial Performance each Consecutive Quarter
Stable Financial Performance each Consecutive Quarter (Rs. crore) Rs. 108 crore 4.5% 18.4% 5.9% 43.7% YoY Change YoY Change YoY Change YoY Change YoY Change + 97% + 157 bps + 598 bps - 69 bps - 336 bps Profit After Tax Return on Assets Return on Equity Opex to Avg AUM Cost to Income Profit After Tax
Slide 15: Optimal Liquidity and Robust Capitalization
Optimal Liquidity and Robust Capitalization 56% YoY growth in funds raised during the period; ~73% on-book borrowing • CRAR of 28.7% as of Dec’23; well above regulatory Funds Raised during requirement the nine months 4,799 7,470 (Rs. crore) • Book Value per Share at Rs. 205 on a consolidated basis 2
Slide 16: Capital Structure
Capital Structure 21.2% Promoter Group Market Cap of Book Value^ 36.1% Florintree Ventures LLP ~ Rs. 2,800 crore* Rs. 205/ share Key Institutional Investors 15.3% Other FII's No. of Equity No. of Shares Shareholders Bodies Corporate 11.05 crore ~29,000 2.6% 11.1% Retail & Others 13.6% Market • 15 ro
Slide 17: Awards & Accolades
Awards & Accolades Won Best Innovative Financial Recognized as the Top 50 companies Accessibility model for WASH at ISC- with Great Managers by People FICCI sanitation award ceremony Business Consulting 16
Slide 18: Actual Performance vs Guidance
Actual Performance vs Guidance Particulars 9MFY24 FY24 E (Actual) GLP Growth (%) 25%+ 44.3% NIM (%) 12.1% - 12.5% 12.9% Operating cost/AUM (%) 5.60% - 5.75% 5.78% Credit Cost (%) 1.25% - 1.50% 1.11% RoA (%) 3.50% - 4.00% 4.45% RoE (%) 17.5% - 19.0% 17.8%* Cost-to-Income Ratio (%) 45% - 50% 45% Capit
Slide 19: SHFL - Leveraging the Outreach through Affordable Housing
SHFL - Leveraging the Outreach through Affordable Housing Business Snapshot Business Leveraging Potential • 100% retail book; middle and low-income • Opportunity to leverage on SCNL’s vast group clients from tier II and below cities geographical presence • 24 active lenders, including NHB Refinance
Slide 20: SFL - Leveraging the Outreach through Retail MSME
SFL - Leveraging the Outreach through Retail MSME Huge untapped potential of the missing middle of small On book AUM increased 48% YoY to reach Rs. 296 crore ticket business loans averaging <= Rs. 2 Lacs secured against collateral Leveraging SCNL Outreach – 2nd cycle + customer base - Focus on secur
Slide 21: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story
Slide 22: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story Leading MFI Player With Diversified Financial Products catering to rural India 01 Diversified Geographical Reach 02 03 State of the Art Technology backed by robust IT infrastructure 04 Strong Underwriting Capability 05 Well-diversified Liability Profile
Slide 23: Diversified Product Offerings
1. Diversified Product Offerings SCNL Satin Housing Finance Limited (2) Satin Finserv Limited (3) Product features MFI(1) Housing Finance MSME as of Dec’23 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 Tenure 6 - 30 months 2
Slide 24: Diversified Geographical Presence
2. Diversified Geographical Presence …serving 34.2 Lacs clients across India Presence across 24 States and UTs 97,000 1,386 No. ofAUM – 9,115 Villages No. of Branches 100% 419 97% No. of Districts Districts with <1% exposure 92 3 Lacs No. of Regional Offices No. of Centres Top 4 States Top 4 States
Slide 25: 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 2.0 lever to facilitate digital repayment of loan website autopay installments during the center meetings • Clients temporarily migrating for •
Slide 26: 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 27: Well-diversified Liability Profile
5. We have a well-diversified Liability Profile Large Lender Base Product-wise Dec’23 77 Active Lenders 1.5% Top 10 Lending Partners % Share 7.2% State Bank of India 13% Term Loan & PTC Bank of Baroda 7% 24.6% NCD Direct Assignment Bank of Maharashtra 7% 56.3% ECB Bandhan Bank Limited 6% 10.5% SIDBI
Slide 28: Positive ALM with Ample Liquidity
6. Positive ALM with Ample Liquidity Benefit of Positive ALM Continues 25.9 26.7 24.9 24.3 18.2 16.9 16.0 14.5 FY21 FY22 FY23 9MFY24 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 31st Dec’23 (Rs. crore) Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Total Inflows Liquidity at the
Slide 29: Strong Management Team with over 250+ years of Experience
7. Strong Management Team with over 250+ years of Experience 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 28 Head – IT C
Slide 30: Successfully Navigated Crisis During Legacy of Over Three Decades
8. 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 28.7% currently • Real-time data • Raised Rs. 1,259 crore equity capital
Slide 31: Key Financial & Operational Metrices
Key Financial & Operational Metrices
Slide 32: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,257 1,224 1,287 1,3861 8,090 8,774 7,449 9,1282 12,726 12,705 13,046 23 23 24 24 11,131 1,908 2,114 1,969 1,909 388 404 405 419 10,612 10,736 11,138 9,222 FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 Districts States Bra
Slide 33: Business Details
Business Details Particulars Q3FY24 Q3FY23 YoY% Q2FY24 QoQ% AUM (Rs. crore) 11,074 7,945 39.4% 10,100 9.6% SCNL 9,811 6,798 44.3% 8,894 10.3% On-book AUM 7,306 4,791 6,588 Assignment 2,497 1,985 2,295 Business Correspondence 8 22 11 SHFL 607(1) 383 58.5% 567 6.9% SFL 657 763 638 Retail MSME 296 200
Slide 34: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio 1,762 1,457 64.8% 1,273 58.0% 1,262 53.8% 44.9% FY21 FY22 FY23* 9MFY24 FY21 FY22 FY23 9MFY24 NII and PAT (Rs. crore) Opex to Avg AUM NII PAT 1,186 6.2% 6.3% 5.8% 5.3% 857 659 656 264 298 40 -14 FY21 FY22 FY23* 9MFY24 FY21 FY22 F
Slide 35: Financial Details (Standalone)
Financial Details (Standalone)
Slide 36: Financial Performance - Standalone
Financial Performance - Standalone Particulars 9MFY24 Q3FY24 Q3FY23 Q2FY24 FY23 Gross yield (1) 21.90% 23.42% 22.85% 22.80% 19.66% Financial Cost Ratio(2) 9.02% 9.82% 8.76% 9.28% 8.04% Net Interest Margin(3) 12.88% 13.60% 14.09% 13.52% 11.62% Operating Expense ratio(4) 5.78% 5.94% 6.63% 5.89% 6.25%
Slide 37: P&L Statement - Standalone
P&L Statement - Standalone Particulars (Rs. crore) 9MFY24 9MFY23 Q3FY24 Q3FY23 Q2FY24 FY23 Revenue Interest and Fee Income 1,175.2 796.3 432.5 268.3 386.2 1,094.0 Gain due to DA 173.0 140.2 74.4 88.1 62.7 209.6 Treasury Income 57.3 398.3* 23.3 11.1 24.4 412.6* BC Income 0.1 3.8 0.0 0.4 0.0 4.0 Other
Slide 38: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 39: P&L Statement - SHFL
P&L Statement - SHFL Particulars (Rs. crore) Q3FY24 Q3FY23 Q2FY24 FY23 Revenue Interest and Fee Income 16.2 12.8 14.7 52.9 Treasury Income 0.7 0.5 2.1 2.0 Other income 7.2 3.3 6.0 7.0 Total Revenue 24.1 16.5 22.8 61.9 Expenses Finance cost 11.6 7.2 10.8 28.2 Employee benefit expenses 6.5 4.6 6.7 18.
Slide 40: P&L Statement - SFL
P&L Statement - SFL Particulars (Rs. crore) Q3FY24 Q3FY23 Q2FY24 FY23 Revenue Interest and Fee Income 30.9 25.2 29.6 102.6 Treasury Income 0.9 0.8 0.8 2.9 Other income 0.2 0.2 0.5 1.0 Total Revenue 32.1 26.2 30.8 106.5 Expenses Finance cost 6.3 4.6 6.8 18.5 Employee benefit expenses 15.9 12.5 15.4 5
Slide 41: Company Background
Company Background
Slide 42: Key Milestones - Business
Key Milestones - Business Registers as NBFC Reached 4.9 Lacs active Date of inception of Satin- with the RBI clients & AUM of ~Rs. 580 October 16, 1990 crore as on Mar’13; Converts Started JLG Model to NBFC-MFI in Nov’13; IPO and listing on DSE, in May 2008 JSE and LSE(1) It begins 1990 1996 1998 20
Slide 43: 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
Slide 44: 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 more than three decades of rich experience, SCNL has emerged as one of the leading and trusted Indian microfinance companies Headqu
Slide 45: 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 46: With Customised Products as per Client Needs
…With Customised Products as per Client Needs Income Generation Loan Long Term Loan Madhya Vriddhi Loan (Prarambh) (Vriddhi) Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 45,000 Rs. 10,000 – Rs. 15,000 Rs. 31,000 – Rs. 80,000 Tenure: 12 - 24 months Tenure: 24 - 30 months Tenure: 24-30 m
Slide 47: Community Connect Activities Centered Around SDGs
Community Connect Activities Centered Around SDGs Infrastructure Development Financial Literacy Workshops In order to enrich the growth and advancement In collaboration with RBI and Sa-Dhan, as of date, we have conducted 42 workshops in the states – In of the students, faculty, and the larger In com
Slide 48: 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 Ms. Ad
Slide 49: 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 8 members; 6 • Constructively working towards safe water knowledge and the strong bond that we have Independent directors of
Slide 50: 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 — Q3 FY2024 Earnings Presentation on 6ix