Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — FY2021 Earnings Presentation
52 slides from Satin Creditcare Network's earnings presentation, June 2021
Slide 1: Investor Presentation June 2021
Investor Presentation June 2021
Slide 2: Content
Content 03 - 11 12 - 15 16 - 30 COVID – 19 Business Update & New Overview and Key Performance What makes Satin a Compelling Initiatives Highlights Investment Story 31 - 44 45 - 52 Key Financial & Operational Metrices Company Background Cautionary Statement Any forward-looking statements about expect
Slide 3: COVID-19 - Business Update & New Initiatives
COVID-19 - Business Update & New Initiatives
Slide 4: Strengthening Business Despite Challenging FY21
Strengthening Business Despite Challenging FY21 Collection Efficiency • Post unlock in Dec’20, collection efficiency improved to 105% in Mar’21(including arrears) • Cumulative collection efficiency for FY21 stood at 94% • Collection Efficiency in Apr’21 stood at 93% • Top four geographies which cons
Slide 5: Strengthening Business Despite Challenging FY21
Strengthening Business Despite Challenging FY21 Provisions • The Company has made a cumulative on-book provision of Rs. 289 crore, of which Rs. 44 crore has been recognized by the Company as at 31 March 2021 on account of significant increase in credit risk on customers given additional support by t
Slide 6: Strengthening Business Despite Challenging FY21
Strengthening Business Despite Challenging FY21 Promoter Pledge • Over the course of the year, the promoter group has reduced significant percentage of pledge of their shareholding • Percentage of Promoter pledge has decreased from 52.88% in Dec’18 to 3.09% on fully diluted basis as on date Cashless
Slide 7: Witnessed Significant Improvement in Collection Efficiency
Witnessed Significant Improvement in Collection Efficiency Witnessed Month on Month Improvement in Collection Efficiency during FY21 • Cumulative collection efficiency for FY21 is 94% • Collection efficiency including arrears in Mar’21 stood at 105% 105% 98% 97% 96% Dec-20 Jan-21 Feb-21 Mar-21 Dec-2
Slide 8: Backed by Substantial Reduction in % of Non-Paying Customers
Backed by Substantial Reduction in % of Non-Paying Customers Reduction in % Portfolio of Non-Paying Clients * • 90.6% clients have paid all instalments in Mar’21 • Significant drop in number of non-paying clients from 11% in Sep’20 to 1.3% in Mar’21 • Disbursement in FY21 represent 70% of total AUM
Slide 9: Business approaching Pre-Covid levels
Business approaching Pre- Covid levels Rs. 8,379 crore Rs. 2,376 crore 30.5 lacs 1,257 GROSS LOAN PORTFOLIO DISBURSEMENT in Q4FY21 ACTIVE CUSTOMERS NO. OF BRANCHES (During the Quarter added 120,556 number of new borrowers) AUM witnessing steady state growth Disbursement gradually approaching Pre-Cov
Slide 10: Update on Subsidiaries - SHFL
Update on Subsidiaries - SHFL Satin Housing Finance Limited Monthly disbursement have picked up SHFL had 2 successive profitable quarters and started showing progressive despite challenging business environment, PAT recovery despite Covid, AUM grew by for FY21 stood at Rs.1.4 crore 63% in FY21 No re
Slide 11: Update on Subsidiaries – TFSL & SFL
Update on Subsidiaries – TFSL & SFL ✓ Collection Efficiency for Mar’21 stood at 93% Taraashna Financial ✓ No restructuring of any loan, 16% clients availed moratorium Services ✓ Disbursement increased by 15% YoY in Q4FY21, added two new BC partners Limited ✓ Sourcing business for SCNL & SFL under Na
Slide 12: Overview and Key Performance Highlights
Overview and Key Performance Highlights
Slide 13: Key Highlights
Key Highlights Share of New Disbursement in FY21 as % of Total AUM 30% New disbursement made in FY21 (post-Covid) contribute 70% of the total loan portfolio as on 31st Mar’21 with PAR1 at 0.7% 70% Pre-Covid Portfolio Post-Covid Portfolio Share of Non-MFI Loan Portfolio as % of Total AUM 8% Share of
Slide 14: Corporate Overview Standalone – FY21
Corporate Overview Standalone – FY21 Rs. 4,394 crore 29.8 Lacs 23 1,011 DISBURSEMENT LOAN ACCOUNTS STATES & UT’s BRANCHES OUTSTANDING 13.3 Lacs Rs. 7,275 crore Rs. (14) crore NO. OF LOANS DISBURSED GROSS LOAN PORTFOLIO PROFIT AFTER TAX 25.3% (0.18%) Rs. 33,000 (0.92%) CAPITAL ADEQUACY RETURN ON ASSE
Slide 15: Corporate Overview Consolidated – FY21
Corporate Overview Consolidated – FY21 Rs. 1,374 crore 30.5 Lacs 1,257 REVENUES CLIENTS BRANCHES Rs. 742 crore Rs. 8,379 crore 23 NET INTEREST INCOME GROSS LOAN PORTFOLIO STATES & UT’s (0.18%) (0.95%) Rs. (14) crore RETURN ON ASSETS RETURN ON EQUITY PROFIT AFTER TAX 15 Above Data is for FY21
Slide 16: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story
Slide 17: 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 18: 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 Mar’21 Limited(2) Start Date May’08 (JLG) May’12 Feb’18 Mar’19 Upto Rs. 50,000 Ticke
Slide 19: 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. 67 crores during FY21 Product Financing Benefits Bicycle Loan Solar Products ▪ Enhances the productivity and income
Slide 20: Diversified Geographical Presence
2. Diversified Geographical Presence …serving ~31 lacs clients across India 60% ~31 lacs ~34 lacs Clients with Satin as Only No. of Active Clients No. of Loan Accounts Lender* 388 84,000 No. of Districts No. of Villages 74 2.5 lacs No. of Regional Offices No. of Centres 29% 8,090 12,726 No. of First
Slide 21: Leading to increasing footprints
… Leading to increasing footprints % of total GLP GLP (Rs. crore) States FY16 FY21 FY21 Uttar Pradesh 40.9% 21.0% 1,757 Bihar 17.7% 15.6% 1,310 Punjab 12.7% 8.7% 732 2. Reducing exposure to traditional regions Madhya Pradesh 15.5% 8.7% 727 Uttarakhand 3.2% 1.4% 116 Maharashtra 1.6% 1.3% 106 Total 91
Slide 22: 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 54% Limiting Exposure per district Average exposure per district % % of Top 10 Districts to AUM 77.3 -43% 10.1 67.7 10.2 58.6 19.2 56.3 54.0 0.45 12.9 8.4 9.6 8.7 21 8.8 9.3 8.7 19 18.1
Slide 23: 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 24: 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 verif
Slide 25: 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 117 Feedback ba
Slide 26: We have a well-diversified Liability Profile
5. We have a well-diversified Liability Profile… … insulated from Capital Market Turbulence Large Lender Base Product-wise Mar’21 64 Active Lenders 0.5% Top 10 Lending Partners % Share as on 31st Mar’21 3.7% Term Loan Indian Bank 13% 19.6% NCD NABARD 11% 49.6% Buyout IDFC First Bank 7% Commercial pa
Slide 27: 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 25.3% 21.2% 15.5 14.5 11.7 8.5 9.0 FY17 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Avg. maturity of Assets Avg. maturity of Liabilities Stati
Slide 28: 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 29: 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 ❑ Implementation of best-in-class technology Concentration (No. of States) Contribution • Reduced TAT + 7 states • Real-time data +72% • Enhan
Slide 30: Key Financial & Operational Metrices
Key Financial & Operational Metrices
Slide 31: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,2571 8,0902 1,383 8,152 1,163 6,382 6,296 767 995 23 23 4,481 22 13,005 12,7263 11,831 18 1,495 1,790 16 1,325 9,004 6,910 1,344 383 388 340 1,109 302 11,148 10,612 235 10,419 7,653 5,801 FY17 FY18 FY19 FY20 FY21 FY17 F
Slide 32: Key Consolidated Financials
Key Consolidated Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,503 60.6% 1,445 1,380 53.4% 52.5% FY19 FY20 FY21 FY19 FY20 FY21 NII and PAT (Rs. crore) Opex to Avg GLP (%) 914 NII 803 742 PAT 6.7% 6.3% 5.4% 201 155 -14 FY19 FY20 FY21 FY19 FY20 FY21 32
Slide 33: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,401 1,373 57.7% 50.8% 1,273 49.7% FY19 FY20 FY21 FY19 FY20 FY21 NII and PAT (Rs. crore) Opex to GLP (%) NII 824 6.5% PAT 6.0% 734 655 5.2% 195 156 -14 FY19 FY20 FY21 FY19 FY20 FY21 33
Slide 34: Financial & Operational Details (Consolidated)
Financial & Operational Details (Consolidated)
Slide 35: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q4FY21 Q4FY20 YoY% Q3FY21 QoQ% AUM (Rs. crore) 8,379 8,174 2.5% 7,880 6.3% On-Book JLG AUM* 5,660 4,621 5,333 Securitization 72 46 28 Assignment 1,375 2,056 1,216 Business Correspondence 256 543 362 TFSL - Business Correspondence 748 704 646 SHF
Slide 36: Annexure – P&L Statement – Consolidated
Annexure – P&L Statement – Consolidated Particulars (Rs. crore) FY21 FY20 YoY% Q4FY21 Q4FY20 YoY% Q3FY21 QoQ % Revenue Interest and Fee Income 1,076 994 297 257 270 DA Income 112 236 54 85 0 Treasury Income 71 117 13 23 18 BC Fees 88 127 31 35 24 Other Operating Income 32 29 14 10 8 Total Revenue 1,
Slide 37: Financial Details (Standalone)
Financial Details (Standalone)
Slide 38: Annexure - Financial Performance – Standalone
Annexure - Financial Performance – Standalone Particulars (Rs. crore) Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Gross yield (1) 21.18% 22.07% 17.21% 17.57% 20.61% Financial Cost Ratio(2) 8.88% 7.95% 9.02% 8.52% 8.49% Net Interest Margin(3) 12.30% 14.12% 8.19% 9.04% 12.12% Operating Expense ratio(4) 6.37% 6.32%
Slide 39: Annexure - P&L Statement – Standalone
Annexure - P&L Statement – Standalone Particulars (Rs. crore) FY21 FY20 YoY% Q4FY21 Q4FY20 YoY% Q3FY21 QoQ % Revenue Interest and Fee Income 1,031 966 284 247 259 DA Income 110 236 53 85 - Treasury Income 66 112 12 21 17 BC Income 35 62 15 14 10 Other Operating Income 30 25 12 9 8 Total Revenue 1,27
Slide 40: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 41: Annexure - P&L Statement – TFSL
Annexure - P&L Statement – TFSL Particulars (Rs. crore) Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Revenue Total Revenue 17.7 22.2 13.1 59.3 69.8 Expenses Finance Cost 1.3 0.8 1.2 4.5 3.2 Employee Benefit Expenses 12.5 9.4 9.2 39.1 38.3 Credit Cost 10.3 -0.3 11.3 13.4 4.2 Other Expenses 3.3 7.7 2.4 10.0 14.4 De
Slide 42: Annexure - P&L Statement – SHFL
Annexure - P&L Statement – SHFL Particulars (Rs. crore) Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Revenue Interest and Fee Income 8.1 5.4 6.6 25.8 17.1 Treasury Income 0.0 0.3 0.0 0.3 1.6 Other income 2.4 0.8 0.6 3.5 2.3 Total Revenue 10.5 6.5 7.2 29.6 21.0 Expenses Finance cost 3.8 2.9 3.6 13.6 8.3 Employee b
Slide 43: Annexure - P&L Statement – SFL
Annexure - P&L Statement – SFL Particulars (Rs. crore) Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Revenue Interest and Fee Income 6.5 5.7 5.9 23.8 13.6 Treasury Income 0.1 0.1 0.1 0.4 0.2 Other income 0.1 0.1 0.1 0.6 0.2 Total Revenue 6.6 5.9 6.1 24.8 14.0 Expenses Finance cost 1.2 0.7 1.1 4.4 1.8 Employee bene
Slide 44: Company Background
Company Background
Slide 45: Key milestones
Key milestones 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 and AUM of Rs. 4,882 business; reach
Slide 46: 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 47: 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 48: 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. 30,000 – Rs. 50,000 Rs. 799 – Rs. 17,999 Tenure : 24 months Tenure : 24 months Tenure : 3-18 mon
Slide 49: 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 in Assam and awarded an by the local Distributed masks, ration and hygiene kits across Odisha appreciation administration districts in P
Slide 50: 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 Now
Slide 51: 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 created with our stakeholders 120 districts and more than 30,000 v
Slide 52: 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 — FY2021 Earnings Presentation on 6ix