Satin Creditcare Network Ltd · NSE:SATIN

Satin Creditcare Network — Q1 FY2025 Earnings Presentation

47 slides from Satin Creditcare Network's earnings presentation, Jul 31, 2024

  1. Slide 1: Intimation of Investor Presentation to stock exchanges

    July 31, 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 Sir/Ma

  2. Slide 2: Investor Presentation July 2024

    INVESTOR PRESENTATION JULY 2024 Growing with Grit Conquering with Capability

  3. Slide 3: Presentation Path and Cautionary Statement

    Presentation Path A B C D Key Business Our Investment Our Operational & The Tale Behind Our Highlights Strengths Financial Prowess Company 03 - 17 18 - 26 27 - 35 36 - 45 Cautionary Statement Any forward-looking statements about expected future events, financial and operating results of the Company

  4. Slide 4: Steps Already Taken to Address Transitory Challenges

    Steps Already Taken to Address Transitory Challenges Dedicated Collection Team: Different DPD buckets are managed by 01 dedicated collection teams to effectively control and minimize forward flows No Over- leveraging: i. Loan per Client ratio at 1.0; ii. Average FOIR at 02 ~Rs. 6,400; 49% lesser tha

  5. Slide 5: What We Strive For

    What We Strive For Widening the ambit of financial inclusion through customized solutions to empower our borrowers Strive to be one- Enriching lives by providing employment in rural stop diversified India financial services provider serving rural India, differentiated by Embracing cutting-edge techn

  6. Slide 6: Standalone Update

    oO ~ © xe) [os > VO c 2 © xe) Cc © ~ ~Y

  7. Slide 7: Standalone Highlights

    Standalone Highlights Rs. 10,485 crore Rs. 1,997 crore Effectively navigated a seasonally moderate quarter… AUM Disbursement YoY 25% YoY 1% Ventured into one new state; presence in 27 states & UT's 34.1 Lacs 2.7% Active Clients GNPA Consistent new client addition led to 22.2% YoY and 2.2% QoQ YoY 22

  8. Slide 8: Financial Performance

    Financial Performance Particulars Q1FY25 Q1FY24 Q4FY24 FY24 FY23 Gross yield (1) 22.09% 20.48% 23.29% 22.14% 19.55% Financial Cost Ratio(2) 8.71% 8.35% 9.13% 8.99% 8.04% Net Interest Margin(3) 13.38% 12.13% 14.16% 13.15% 11.51% Operating Expense ratio(4) 5.54% 5.81% 5.27% 5.60% 6.25% Loan Loss Ratio

  9. Slide 9: Business Trends

    Business Trends (Rs. crore) AUM Disbursement YoY YoY +25% +1% 10,593 10,485 2,810 9,811 2,698 8,894 2,202 8,367 1,997 1,980 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 • Despite a muted quarter, on-book portfolio grew by 28.7% YoY and 1.1% QoQ to reach Rs. 8,021 crore • As

  10. Slide 10: Asset Quality

    Asset Quality PAR 90 ECL ECL% PAR 90 ECL% 2.7% 2.5% 2.5% 2.4% 2.4% 2.5% 2.1% 1.9% 2.0% 1.6% 1.7% 1.3% 1.5% 1.5% 1.5% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 • On-book GNPA stood at Rs. 219 crore (2.7% of on-book portfolio) • The Company has sufficient on-book provisions

  11. Slide 11: Other Key Updates

    Other Key Updates Enriched Board: Appointed 2 new independent directors Awarded as the “The Dominant •Mr. Joydeep Datta Gupta, former Microfinance of the Year” by B2B Partner of Deloitte India Infomedia at their 17th NBFC & •Ms. Jyoti Davar, Director General Fintech Awards 2024 at FICCI Raised USD 4

  12. Slide 12: Our Subsidiaries

    Our Subsidiaries

  13. Slide 13: SHFL - Leveraging the Outreach through Affordable Housing

    SHFL - Leveraging the Outreach through Affordable Housing • AUM at Rs. 769 crore; growth of • Opportunity to leverage on SCNL’s 50% YoY vast geographical presence • 100% retail book; middle and low- • Tapping the high income clients of income group clients from Tier II SCNL, with opportunity of Rs.

  14. Slide 14: SFL - Leveraging the Outreach through Retail MSME

    SFL - Leveraging the Outreach through Retail MSME On-book AUM increased 41% Huge untapped potential of the missing middle YoY to reach Rs. 353 crore of small ticket business loans averaging ~Rs. 2 Lacs secured against collateral Leveraging SCNL Outreach – 2nd cycle Focus on secured retail MSME + cus

  15. Slide 15: Consolidated Update

    Consolidated Update

  16. Slide 16: Consolidated Highlights

    Consolidated Highlights (YoY change) Rs. 11,706 crore Rs. 634 crore Assets Under Management Total Revenue Up by 23% Up by 37% 01 05 Rs. 2,114 crore Rs. 213 crore Disbursement 02 06 PPoP On similar levels as Q1FY24 Up by 60% Snapshot for Q1FY25 35.1 Lacs 03 07 Rs. 105 crore Active Clients Profit afte

  17. Slide 17: Financial Performance

    Financial Performance Particulars Q1FY25 Q1FY24 Q4FY24 FY24 FY23 Gross yield (1) 21.54% 19.89% 22.58% 21.37% 18.54% Financial Cost Ratio(2) 8.52% 7.96% 8.79% 8.60% 7.37% Net Interest Margin(3) 13.02% 11.93% 13.78% 12.78% 11.17% Operating Expense ratio(4) 5.80% 6.23% 5.49% 5.80% 6.31% Loan Loss Ratio

  18. Slide 18: 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

  19. Slide 19: Our Investment Strengths

    Our Investment Strengths

  20. Slide 20: 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

  21. Slide 21: Diversified Product Offerings

    Diversified Product Offerings Satin Creditcare Network Limited Satin Housing Finance Limited Satin Finserv Limited Product features MFI(1) Housing Finance MSME as of Jun’24 Start Date May’08 (JLG) Feb’18 Mar’19 Ticket Size Range Upto Rs. 90,000 Rs. 100,000 – 4,000,000 Rs. 100,000 – 100,000,000 Tenur

  22. Slide 22: Diversified Geographical Presence

    Diversified Geographical Presence Presence across 27 States and UTs 1,447 100 No. of Regional Offices No. of Branches 425 2.8 Lacs No. of Districts No. of Centers 96.7% Districts with <1% exposure Top 4 States 6.6% Top 4 States (56%) Uttar Pradesh 8.8% Next 6 states (27%) 26.1% Bihar West Bengal Rem

  23. Slide 23: Well-diversified Liability Profile

    Well-diversified Liability Profile Large Lender Base Product-wise Jun’24 77 Active Lenders 0.5% Top 10 Lending Partners % Share 8.7% State Bank of India 15% Term Loan & PTC 16.2% Bank of Maharashtra 8% Direct Assignment 49.8% NCD Bank of Baroda 8% ECB SIDBI 6% 24.8% Commercial Paper Blue Orchard* 5%

  24. Slide 24: Positive ALM with Ample Liquidity

    Positive ALM with Ample Liquidity Benefit of Positive ALM Continues 27.7 28.1 25.9 24.3 18.2 17.8 17.2 16.0 FY22 FY23 FY24 Q1FY25 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 30th Jun’24 (Rs. crore) Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Total Inflows Liquidity at the beg

  25. Slide 25: Strong Management Team

    Strong Management Team HP Singh Chairman cum Managing Director Jugal Kataria Aditi Singh Anil Kwatra Sunil Yadav Group Controller Chief Strategy Officer Chief Business Officer Chief Information Officer Manoj Agrawal Dhiraj Jha Bhuvnesh Khanna Amit Sharma 24 Chief Financial Officer Chief Risk Officer

  26. Slide 26: Accomplished and Experienced Board of Directors

    Accomplished and Experienced Board of Directors Mr. HP Singh Chairman Law Graduate and fellow of ICAI, veteran in financial inclusion Mr. Satvinder Singh Mr. Anil Kaul Mr. Joydeep Datta Non-Independent Independent Director Gupta Director Former MD, TATA Capital Independent Director Veteran in consum

  27. Slide 27: 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 27.9% currently • Real-time data • Raised Rs. 1,259 crore equity capital Lea

  28. Slide 28: Our Operational & Financial Prowess

    Our Operational & Financial Prowess

  29. Slide 29: Key Operation Metrics

    Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,224 1,286 1,393 1,447(1) 8,774 7,449 9,309 10,413(2) 26 27 12,705 11,131 12,896 14,459 23 24 1,462 1,969 1,533 404 405 421 425 1,909 11,363 12,997 10,736 9,222 FY22 FY23 FY24 Q1FY25 FY22 FY23 FY24 Q1FY25 Districts State

  30. Slide 30: Business Details

    Business Details Particulars Q1FY25 Q1FY24 YoY% Q4FY24 QoQ% AUM (Rs. crore) 11,706 9,535 22.8% 11,850 -1.2% SCNL 10,485 8,367 25.3% 10,593 -1.0% On-book AUM 8,021 6,232 28.7% 7,931 1.1% Assignment 2,464 2,117 2,662 Business Correspondence - 18 - SHFL 769(1) 514 49.7% 756 1.7% SFL 452 654 501 Retail

  31. Slide 31: Financial Details (Standalone)

    Financial Details (Standalone)

  32. Slide 32: Key Metrics

    Key Metrics Gross Income (Rs. crore) Cost to Income Ratio 2,051 64.8% 1,753 54.3% 1,262 42.6% 41.4% 582 FY22 FY23* FY24 Q1FY25 FY22 FY23 FY24 Q1FY25 NII and PAT (Rs. crore) Opex to Avg AUM NII PAT 1,177 1,218 6.2% 6.3% 5.6% 5.5% 656 423 353 264 103 40 FY22 FY23* FY24 Q1FY25 FY22 FY23 FY24 Q1FY25 31

  33. Slide 33: P&L Statement

    P&L Statement Particulars (Rs. crore) Q1FY25 Q1FY24 Q4FY24 FY24 FY23 Revenue Interest Income 510.6 364.9 466.7 1,670.3 1,113.8 Gain due to DA 44.3 35.9 84.0 257.0 201.5 Treasury Income 21.6 14.5 32.2 89.5 412.6* BC Income - 0.1 0.0 0.1 4.0 Other Operating Income 5.6 6.7 10.9 33.7 21.5 Total Revenue

  34. Slide 34: Financials (Subsidiaries)

    Financials (Subsidiaries)

  35. Slide 35: P&L Statement - SHFL

    P&L Statement - SHFL Particulars (Rs. crore) Q1FY25 Q1FY24 Q4FY24 FY24 FY23 Revenue Interest and Fee Income 16.5 17.3 17.3 67.0 52.9 Treasury Income 2.8 0.5 1.9 5.2 2.0 Other income 3.2 0.8 7.7 20.2 7.0 Total Revenue 22.5 18.5 26.9 92.3 61.9 Expenses Finance cost 13.2 10.4 11.6 44.3 28.2 Employee be

  36. Slide 36: P&L Statement - SFL

    P&L Statement - SFL Particulars (Rs. crore) Q1FY25 Q1FY24 Q4FY24 FY24 FY23 Revenue Interest and Fee Income 27.9 25.1 29.6 115.1 102.6 Treasury Income 1.2 1.0 1.0 3.9 2.9 Other income 1.3 0.7 1.1 2.4 1.0 Total Revenue 30.4 26.8 31.7 121.4 106.5 Expenses Finance cost 8.3 6.1 7.5 26.4 18.5 Employee ben

  37. Slide 37: The Tale Behind Our Company

    The Tale Behind Our Company

  38. Slide 38: 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(

  39. Slide 39: 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

  40. Slide 40: Capital Structure

    Capital Structure Promoter Group 24.5% Market Cap of Book Value^ Florintree Ventures LLP 36.2% ~ Rs. 2,400 crore Rs. 227/ share Key Institutional Investors Other FII's No. of Equity No. of 15.9% Bodies Corporate Shares Shareholders Retail & Others 11.05 crore ~43,000 1.8% 11.1% 10.8% Market • 15 rou

  41. Slide 41: 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

  42. Slide 42: Customised Products as per Client Needs

    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. 15,000 Rs. 10,000 – Rs. 45,000 Rs. 31,000 – Rs. 90,000 Tenure: 12 - 24 months Tenure: 24 - 30 months Tenure: 24 - 30 month

  43. Slide 43: 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

  44. Slide 44: Community Connect Activities Centered Around SDGs

    Community Connect Activities Centered Around SDGs Infrastructure 01 Flood Relief Activity Supported our clients affected by the 02 Development To enrich the growth and advancement flood across Assam by distributing of the students, faculty, and the larger rations, ensuring they have the community of

  45. Slide 45: 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

  46. Slide 46: 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 10 members; 8 • Satin’s headquarters – a green building – is knowledge and the strong bond that we have Independent directors of which 2 are wom

  47. Slide 47: Contact Information

    Contact Information Company (Investors & Media) : Ms. Aditi Singh Ms. Shweta Bansal Chief Strategy Officer GM - 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 — Q1 FY2025 Earnings Presentation on 6ix