Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q2 FY22 Earnings Presentation
56 slides from Satin Creditcare Network's earnings presentation, October 2021
Slide 1: Investor Presentation October 2021
Investor Presentation October 2021
Slide 2: Contents and Cautionary Statement
Contents 03 - 14 15 - 19 20 - 33 Business Update & New Initiatives Overview and Key Performance What makes Satin a Compelling Highlights Investment Story 34 - 47 48 - 56 Key Financial & Operational Metrices Company Background Cautionary Statement Any forward-looking statements about expected future
Slide 3: Business Update & New Initiatives
Business Update & New Initiatives
Slide 4: Update on Assam Portfolio
Update on Assam Portfolio • The State government has signed MoU with lenders and will dedicate close to Rs. 7,200 crore as relief • Assam cabinet approved Rs. 1,800 crore to provide relief to around 11 lacs microfinance borrowers (maximum up to Rs. 25,000 per borrower), who are making regular paymen
Slide 5: Quarterly Business Updates (1/2)
Quarterly Business Updates (1/2) Collection Efficiency • Oct’21 (till 22nd) collection efficiency stood at 97% excl. Assam • Collection efficiency for Sep’21 stood at 91% excl. Assam • Cumulative collection efficiency for Q2FY22 stood at 90% excl. Assam • Non-paying clients at 4% in H1FY22, improvem
Slide 6: Quarterly Business Updates (2/2)
Quarterly Business Updates (2/2) Taking Care of Satin Family • Satin Sahyog to support families of employees, in the event of demise due to Covid-19 or accidental death – benefits include pension, children’s education and job to a family member among others • Covid insurance for Satin staff to help
Slide 7: Business Trends
Business Trends… Rs. 7,381 crore Rs. 1,315 crore 29 Lacs 1,279 GROSS LOAN PORTFOLIO DISBURSEMENT in Q2FY22 ACTIVE CUSTOMERS NO. OF BRANCHES Asset under Management Trends (Q-o-Q) Disbursement Trends (Q-o-Q) 792 8,379 607 7,667 7,880 7,464 7,381 198 291 1,104 438 923 972 1,020 1,066 239 212 85 1,624 2
Slide 8: Trends in Collection Efficiency
…Trends in Collection Efficiency Month on Month Collection Efficiency Trends 92% 94% 90% 91% 96% 97% 80% 82% 86% 89% 87% 89% 73% 74% Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 CE% Incl Assam CE% Excl Assam Collection Efficiency Trends in Key States – 53% of AUM CE % (Incl. Arrears) States Jun-
Slide 9: Trend of % of Non-Paying Customers
Trend of % of Non-Paying Customers Breakup of Paying and Non-Paying Clients* • There is no intent issue since 96% clients have paid at least one instalment between Apr-Sep’21 – difficulty in paying due to adverse external environment • Non-paying clients were 4% during H1FY22, this number was 11% in
Slide 10: Diversifying to Secured Assets – Future Upside Potential
Diversifying to Secured Assets – Future Upside Potential Non-MFI Portfolio • Non-MFI book of the Company includes the MSME and Housing Finance Business • MSME Book grew from Rs. 105 crore in H1FY19 to Rs. 464 crore in H2FY22 (i.e. 341% growth) • Housing Finance Book grew from Rs. 27 crore in H1FY19
Slide 11: Adam Smith Awards Asia 2021 Highly Commended Winner
'Adam Smith Awards Asia 2021’ Highly Commended Winner in the Category of “Best New Technology Solution” • Satin Creditcare Network Limited was “Highly Commended Winner” in the Prestigious 'Adam Smith Awards Asia 2021 in the Category of “Best New Technology Solution” • This award is a remarkable achi
Slide 12: Update on Subsidiaries – SHFL Eroded All Losses
Update on Subsidiaries – SHFL Eroded All Losses Satin Housing Finance Limited AUM grew by 51% in Q2FY22 YoY SHFL had 4 successive profitable quarters despite Q2FY22 disbursement stood at Rs. 32 crore challenging business environment, PAT for Q2FY22 stood at Rs. 0.6 crore Company knocked off all No w
Slide 13: Update on Subsidiaries – TFSL & SFL
Update on Subsidiaries – TFSL & SFL Taraashna ✓ Collection Efficiency for Sep’21 stood at 91% Financial ✓ Disbursement stood at Rs. 155 crore for Q2FY22 Services Limited ✓ Sourcing business for SCNL & SFL under Nai Roshni ✓ AUM growth of 15% YoY in Q2FY22 Satin Finserv ✓ Healthy CRAR of 77.91% Limit
Slide 14: Objective Behind Amalgamation
Objective Behind Amalgamation The combined entity would be able to efficiently use the capital invested in the two entities and leverage the same Currently the revenue sharing arrangement between TFSL and SFL is taxable. In the combined entity, tax benefit will accrue to the business TFSL has signif
Slide 15: Overview
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Slide 16: 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 17: Key Performance Highlights
Key Performance Highlights
Slide 18: Corporate Overview Standalone – Q2FY22
Corporate Overview Standalone – Q2FY22 Rs. 1,103 crore 27.6 Lacs 23 1,028 DISBURSEMENT LOAN ACCOUNTS STATES & UT’s BRANCHES OUTSTANDING 2.5 Lacs Rs. 6,315 crore Rs. 12 crore NO. OF LOANS DISBURSED GROSS LOAN PORTFOLIO PROFIT AFTER TAX 22.3% 0.6% Rs. 43,000 3.3% CAPITAL ADEQUACY RETURN ON ASSETS AVER
Slide 19: Corporate Overview Consolidated – Q2FY22
Corporate Overview Consolidated – Q2FY22 Rs. 326 crore 29 Lacs 1,279 REVENUES CLIENTS BRANCHES Rs. 171 crore Rs. 7,381 crore 23 NET INTEREST INCOME GROSS LOAN PORTFOLIO STATES & UT’s 0.6% 3.2% Rs. 11 crore RETURN ON ASSETS RETURN ON EQUITY PROFIT AFTER TAX 19
Slide 20: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story
Slide 21: 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 22: Differentiated Product Offerings
1. 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’21 Limited(2) Start Date May’08 (JLG) May’12 Feb’18 Mar’19 Upto Rs. 50,000 Ticke
Slide 23: With opportunities to leverage our client reach
…With opportunities to leverage our client reach Satin finances product purchase of solar lamps, bicycles etc. and grants loan for safe water and sanitation facilities Financing ~Rs. 19 crore during H1FY22, dip due to second wave led lockdown Product Financing Benefits ▪ Enhances the productivity an
Slide 24: Diversified Geographical Presence
2. Diversified Geographical Presence …serving 29 lacs clients across India 59% 29 Lacs 34 Lacs Clients with Satin as Only No. of Active Clients No. of Loan Accounts Lender* 400 83,000 No. of Districts No. of Villages 72 2.5 Lacs No. of Regional Offices No. of Centres 16% 8,313 12,910 No. of First Cy
Slide 25: Leading to increasing footprints
…Leading to increasing footprints % of total GLP GLP (Rs. crore) States FY16 Q2FY22 Q2FY22 UTTAR PRADESH 40.9% 21.3% 1,573 BIHAR 17.7% 14.4% 1,063 MADHYA PRADESH 15.5% 8.9% 653 2. Reducing exposure to traditional regions PUNJAB 12.7% 8.2% 604 UTTARAKHAND 3.2% 1.4% 105 90.1% 54.2% 3,999 % of total GL
Slide 26: And de-risking geographical concentration
…And de-risking geographical concentration To remain a PAN India Player Share of Top 4 States Reduced from 77% to 53% Limiting Exposure per district Average exposure per district % % of Top 10 Districts to AUM 77.3 -53% 10.1 67.7 10.2 56.3 58.6 54.0 19.2 52.6 0.45 12.9 8.4 9.6 8.7 8.2 21 8.8 9.3 8.7
Slide 27: A Difference Powered by Technological Prowess & Processes
3. A Difference Powered by Technological Prowess & Processes… Turnaround Time : Game Changing Gold Standard Information Security. Customer Acquision to Disbursement Journey Digital Transformation Technology ISO 27001:2013 Certified reduced from 18 days to few minutes • Online real-time system • DMS
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 & 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, Credit Bureau scorecard for individual clients for better screening 107 Feedback based Zonal Auditor
Slide 30: Well-diversified Liability Profile
5. We have a well-diversified Liability Profile… …insulated from Capital Market Turbulence Large Lender Base Product-wise Sep’21 55 Active Lenders 0.7% Top 10 Lending Partners % Share as on 30th Sep’21 4.6% 16.5% Term Loan Indian Bank 11% NCD NABARD 10% 49.1% Buyout IDFC First Bank 7% Commercial pap
Slide 31: Strong Capitalization with Ample Liquidity
6. Strong Capitalization with Ample Liquidity Healthy CRAR to Support Growth Opportunities Benefit of Positive ALM Continues 26.3 24.9 28.5% 30.5% 21.5 22.3 22.1 22.4 25.3% 21.2% 22.3% 15.5 14.5 13.3 11.7 8.5 9.0 FY17 FY18 FY19 FY20 FY21 Q2FY22 FY18 FY19 FY20 FY21 Q2FY22 Avg. maturity of Assets Avg.
Slide 32: 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 » 100% retail book comprising of: » Incorporated in Aug’18, got license from RBI to provides credit to clients
Slide 33: Successfully Navigated Crisis During Legacy of 30 Years
Successfully Navigated Crisis During Legacy of 30 Years Learnings from Demonetization De-risking Geographic Reduction in Top 4 State District Diversification Concentration (No. of States) Contribution ❑ Implementation of best-in-class technology + 7 states +77% • Reduced TAT 23 81% 400 • Real-time d
Slide 34: Key Financial & Operational Metrices
Key Financial & Operational Metrices
Slide 35: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 8,3132 1,257 1,2791 8,090 1,383 8,152 1,163 6,296 995 6,382 767 22 23 23 23 12,9103 4,481 13,005 12,726 11,831 18 1,495 1,790 1,878 16 1,325 9,004 400 6,910 1,344 383 388 340 1,109 302 11,148 10,612 10,709 235 10,419 7,65
Slide 36: Key Consolidated Financials
Key Consolidated Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,503 1,445 1,380 68.3% 69.1% 60.6% 53.4% 52.5% 347 326 FY19 FY20 FY21 Q1FY22 Q2FY22 FY19 FY20 FY21 Q1FY22* Q2FY22* NII and PAT (Rs. crore) Opex to Avg AUM (%) 914 NII 803 742 PAT 6.7% 6.3% 6.2% 6.2% 5.4% 201 183 171 155 1
Slide 37: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,373 1,401 1,273 68.4% 62.9% 57.7% 50.8% 49.7% 321 299 FY19 FY20 FY21 Q1FY22 Q2FY22 FY19 FY20 FY21 Q1FY22* Q2FY22* NII and PAT (Rs. crore) Opex to Avg AUM (%) 824 6.5% 6.4% NII 6.0% 734 5.8% 655 PAT 5.2% 195 156 162 150 12
Slide 38: Financial & Operational Details (Consolidated)
Financial & Operational Details (Consolidated)
Slide 39: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q2FY22 Q2FY21 YoY% Q1FY22 QoQ% AUM (Rs. crore) 7,381 7,667 -3.7% 7,464 -1.1% SCNL 6,315 6,744 6,444 On-book AUM 5,371 4,572 5,143 Assignment 795 1,699 1,093 Business Correspondence 149 473 207 TFSL 682 639 671 (1) SHFL 246 164 224 SFL 138 120 12
Slide 40: Annexure – P&L Statement – Consolidated
Annexure – P&L Statement – Consolidated Particulars (Rs. crore) Q2FY22 Q2FY21 YoY% Q1FY22 QoQ FY21 FY20 YoY% Revenue Interest and Fee Income 286 251 303 1,076 994 Loss/gain due to DA 1 44 0 112 236 Treasury Income 14 20 18 71 117 BC Fees 19 21 20 88 127 Other Operating Income 6 2 5 32 29 Total Reven
Slide 41: Financial Details (Standalone)
Financial Details (Standalone)
Slide 42: Annexure - Financial Performance – Standalone
Annexure - Financial Performance – Standalone Particulars (Rs. crore) H1FY22 Q2FY22 Q2FY21 Q1FY22 FY21 FY20 Gross yield (1) 18.19% 18.73% 18.14% 18.69% 17.57% 20.61% Financial Cost Ratio(2) 9.14% 9.40% 8.83% 9.44% 8.52% 8.49% Net Interest Margin(3) 9.05% 9.33% 9.32% 9.25% 9.04% 12.12% Operating Expe
Slide 43: Annexure - P&L Statement – Standalone
Annexure - P&L Statement – Standalone Particulars (Rs. crore) Q2FY22 Q2FY21 YoY% Q1FY22 QoQ% FY21 FY20 YoY% Revenue Interest and Fee Income 274 241 291 1,031 966 Loss/gain due to DA 1 44 0 110 236 Treasury Income 16 20 15 66 112 BC Income 6 7 7 35 62 Other Operating Income 3 4 8 23 25 Total Revenue
Slide 44: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 45: Annexure - P&L Statement – TFSL
Annexure - P&L Statement – TFSL Particulars (Rs. crore) Q2FY22 Q2FY21 Q1FY22 FY21 Revenue Total Revenue 15.9 18.2 13.6 59.3 Expenses Finance Cost 1.4 1.1 1.1 4.5 Employee Benefit Expenses 11.8 8.9 11.4 39.1 Credit Cost 6.0 0.5 7.9 11.3 Other Expenses 2.4 2.7 2.0 10.0 Depreciation and amortization ex
Slide 46: Annexure - P&L Statement – SHFL
Annexure - P&L Statement – SHFL Particulars (Rs. crore) Q2FY22 Q2FY21 Q1FY22 FY21 Revenue Interest and Fee Income 7.8 5.6 7.7 25.8 Treasury Income 0.3 0.3 0.1 0.3 Other income 0.2 0.3 0.6 3.5 Total Revenue 8.2 6.2 8.4 29.6 Expenses Finance cost 4.0 3.1 3.9 13.6 Employee benefit expenses 2.4 2.3 3.0
Slide 47: Annexure - P&L Statement – SFL
Annexure - P&L Statement – SFL Particulars (Rs. crore) Q2FY22 Q2FY21 Q1FY22 FY21 Revenue Interest and Fee Income 6.3 5.6 5.8 23.8 Treasury Income 0.1 0.1 0.0 0.4 Other income 0.1 0.3 0.1 0.6 Total Revenue 6.5 6.0 5.9 24.8 Expenses Finance cost 1.3 1.0 1.1 4.4 Employee benefit expenses 1.9 1.6 2.0 7.
Slide 48: Company Background
Company Background
Slide 49: Key Milestones
Key Milestones Business Timeline 2016 2017 2018 2019 2020 Received NBFC license for SHFL commenced lending in Started MSME Lending in Reached 27.1 lacs active Satin Finserv Ltd for MSME Received the Award of Feb18; BC agreement with FY17; Acquired TFSL in clients and AUM of Rs. 4,882 business; reach
Slide 50: Key Milestones
Key Milestones 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 warrants); Exit of DMP in Jul'16 Investme
Slide 51: 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 52: With Customised Products as per Client Needs
…With Customised Products as per Client Needs Income Generation Loan Long Term Loan Product Financing/Wash (Prarambh) (Vriddhi) Loan Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 30,000 Rs. 31,000 – Rs. 50,000 Rs. 799 – Rs. 21,999 Tenure : 24 months Tenure : 24 months Tenure : 3-18 mont
Slide 53: 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 Free health check-up camps in Assam and awarded an by the local Distributed masks, ration and hygiene kits across Odisha appreciation administration districts in Pun
Slide 54: Awards and Accolades
Awards and Accolades ▪ Mr. HP Singh, CMD, was conferred the Best CEO of the Year at ‘Golden Globe Tigers” virtual 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 No
Slide 55: ESG Snapshot
ESG Snapshot Environment Social Water and Sanitation (WASH) Loans • Our strength lies in our ground level knowledge and the strong bond that we have • SCNL has been constructively working towards safe water and sanitation in around 120 created with our stakeholders districts and more than 30,000 vil
Slide 56: 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 – 7004) www.satincreditcare.com
Satin Creditcare Network — Q2 FY22 Earnings Presentation on 6ix