Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q1 FY2022 Earnings Presentation
53 slides from Satin Creditcare Network's earnings presentation, August 2021
Slide 1: Investor Presentation August 2021
Investor Presentation August 2021
Slide 2: Content
Content 03 - 11 12 - 16 17 - 30 Business Update & New Initiatives Overview and Key Performance What makes Satin a Compelling Highlights Investment Story 31 - 44 45 - 53 Key Financial & Operational Metrices Company Background Cautionary Statement Any forward-looking statements about expected future e
Slide 3: Business Update & New Initiatives
Business Update & New Initiatives
Slide 4: Q1FY22 Quarterly Business Updates
Q1FY22 Quarterly Business Updates… Collection Efficiency • Collection efficiency witnessed dip on account of second wave of Covid-19 pandemic during the quarter. However, collections have started to pick up with declining infections and lifting of lockdown restrictions since 3rd week of Jun’21 • Cum
Slide 5: Q1FY22 Quarterly Business Updates
…Q1FY22 Quarterly Business Updates 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 hel
Slide 6: Business Trends
Business Trends… Rs. 7,464 crore Rs. 282 crore 29.6 lacs 1,264 GROSS LOAN PORTFOLIO DISBURSEMENT in Q1FY22 ACTIVE CUSTOMERS NO. OF BRANCHES Asset under Management Trends (Q-o-Q) Disbursement Trends (Q-o-Q) 792 8,119 8,379 607 7,667 7,880 7,464 198 291 939 1,104 923 972 1,020 239 22 85 1,624 2,084 7,
Slide 7: Trends in Collection Efficiency
… Trends in Collection Efficiency Month on Month Collection Efficiency Trends 105% 93% 87% 90% 75% 80% Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 CE% (Incl. Arrears) Collection Efficiency Trends in Key States – 53% of AUM CE % (Incl. Arrears) States Mar-21 Apr-21 May-21 Jun-21 Jul-21 Uttar Pradesh 10
Slide 8: 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 95% clients have paid at least one instalment in Jun’21 – difficulty in paying due to adverse external environment • Non-paying clients at 5% in Jun’21, this number was 11% in Sep’20 which i
Slide 9: Update on Subsidiaries - SHFL
Update on Subsidiaries - SHFL Satin Housing Finance Limited Monthly disbursement has started SHFL had 3 successive profitable quarters showing progressive recovery despite despite challenging business environment, PAT Covid-19, AUM grew by 56% in Q1FY22 for Q1FY22 stood at Rs.0.5 crore YoY Q1FY22 di
Slide 10: Update on Subsidiaries – TFSL & SFL
Update on Subsidiaries – TFSL & SFL Taraashna ✓ Collection Efficiency for Jun’21 stood at 87% Financial ✓ Disbursement stood at 52 Crores for Q1FY22 Services Limited ✓ Sourcing business for SCNL & SFL under Nai Roshni ✓ AUM growth of 6% YoY in Q1FY22 Satin Finserv ✓ Healthy CRAR of 85.61% Limited ✓
Slide 11: 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 signifi
Slide 12: Overview
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Slide 13: 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 14: Key Performance Highlights
Key Performance Highlights
Slide 15: Corporate Overview Standalone – Q1FY22
Corporate Overview Standalone – Q1FY22 Rs. 222 crore 28.8 Lacs 23 1,022 DISBURSEMENT LOAN ACCOUNTS STATES & UT’s BRANCHES OUTSTANDING 0.55 Lacs Rs. 6,444 crore Rs. (71) crore NO. OF LOANS DISBURSED GROSS LOAN PORTFOLIO PROFIT AFTER TAX 24.0% (3.8%) Rs. 37,000 (19.7%) CAPITAL ADEQUACY RETURN ON ASSET
Slide 16: Corporate Overview Consolidated – Q1FY22
Corporate Overview Consolidated – Q1FY22 Rs. 343 crore 29.6 Lacs 1,264 REVENUES CLIENTS BRANCHES Rs. 180 crore Rs. 7,464 crore 23 NET INTEREST INCOME GROSS LOAN PORTFOLIO STATES & UT’s (4.2%) (22.5%) Rs. (81) crore RETURN ON ASSETS RETURN ON EQUITY PROFIT AFTER TAX 16 Above Data is for Q1FY22
Slide 17: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story
Slide 18: 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 19: 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 Jun’21 Limited(2) Start Date May’08 (JLG) May’12 Feb’18 Mar’19 Upto Rs. 50,000 Ticke
Slide 20: 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. 12 crore during Q1FY22, dip due to second wave led lockdown Product Financing Benefits Bicycle Loan Solar Products ▪
Slide 21: Diversified Geographical Presence
2. Diversified Geographical Presence …serving ~30 lacs clients across India 60% ~30 lacs ~33 lacs Clients with Satin as Only No. of Active Clients No. of Loan Accounts Lender* 391 83,000 No. of Districts No. of Villages 74 2.5 lacs No. of Regional Offices No. of Centres 28% 7,824 12,287 No. of First
Slide 22: Leading to increasing footprints
… Leading to increasing footprints % of total GLP GLP (Rs. crore) States FY16 Q1FY22 Q1FY22 Uttar Pradesh 40.9% 20.3% 1,517 Bihar 17.7% 15.1% 1,124 Punjab 12.7% 8.6% 643 2. Reducing exposure to traditional regions Madhya Pradesh 15.5% 8.6% 645 Uttarakhand 3.2% 1.4% 101 Maharashtra 1.6% 1.4% 107 Tota
Slide 23: 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 8.6 21 8.8 9.3 8.
Slide 24: 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 25: 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 26: 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 111 Feedback ba
Slide 27: 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 Jun’21 61 Active Lenders 0.6% Top 10 Lending Partners % Share as on 30th Jun’21 4.4% 17.4% Term Loan Indian Bank 13% NCD NABARD 12% 49.3% Buyout IDFC First Bank 7% Commercial pa
Slide 28: 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 30.5% 22.3 22.1 23.2 28.5% 25.3% 24.0% 21.2% 15.5 14.5 13.5 11.7 9.0 FY18 FY19 FY20 FY21 Q1FY22 FY18 FY19 FY20 FY21 Q1FY22 Avg. maturity of Assets Avg. maturity of L
Slide 29: 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 30: 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 +73% • Reduced TAT 23 81% 391 • Real-time d
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 7,8242 1,257 1,2641 8,090 1,383 8,152 1,163 6,296 995 6,382 767 22 23 23 23 4,481 13,005 12,726 12,2873 11,831 18 1,495 1,790 16 1,325 1,864 9,004 6,910 1,344 383 388 391 340 1,109 302 11,148 10,612 235 10,419 10,121 7,65
Slide 33: Key Consolidated Financials
Key Consolidated Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,503 1,445 1,380 68.3% 60.6% 53.4% 52.5% 343 FY19 FY20 FY21 Q1FY22 FY19 FY20 FY21 Q1FY22* NII and PAT (Rs. crore) Opex to Avg GLP (%) 914 NII 803 742 PAT 6.7% 6.3% 6.2% 5.4% 201 180 155 -14 -81 FY19 FY20 FY21 Q1FY22 FY19
Slide 34: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,373 1,401 1,273 62.9% 57.7% 50.8% 49.7% 317 FY19 FY20 FY21 Q1FY22 FY19 FY20 FY21 Q1FY22* NII and PAT (Rs. crore) Opex to GLP (%) 824 6.5% NII 6.0% 734 5.8% 655 PAT 5.2% 195 156 159 -14 -71 FY19 FY20 FY21 Q1FY22 FY19 FY20 F
Slide 35: Financial & Operational Details (Consolidated)
Financial & Operational Details (Consolidated)
Slide 36: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q1FY22 Q1FY21 YoY% Q4FY21 QoQ% AUM (Rs. crore) 7,464 8,119 -8.1% 8,379 -10.9% On-Book JLG AUM* 5,143 4,653 5,660 Securitization 59 46 72 Assignment 1,093 2,009 1,375 Business Correspondence 207 519 256 TFSL - Business Correspondence 671 677 748
Slide 37: Annexure – P&L Statement – Consolidated
Annexure – P&L Statement – Consolidated Particulars (Rs. crore) FY21 FY20 YoY% Q1FY22 Q1FY21 YoY% Q4FY21 QoQ % Revenue Interest and Fee Income 1,076 994 303 258 297 Loss/gain due to DA 112 236 -3 14 54 Treasury Income 71 117 18 20 13 BC Fees 88 127 20 12 31 Other Operating Income 32 29 5 8 11 Total
Slide 38: Financial Details (Standalone)
Financial Details (Standalone)
Slide 39: Annexure - Financial Performance – Standalone
Annexure - Financial Performance – Standalone Particulars (Rs. crore) Q1FY22 Q4FY21 Q1FY21 FY21 FY20 Gross yield (1) 18.47% 21.03% 16.16% 17.57% 20.61% Financial Cost Ratio(2) 9.22% 8.88% 8.64% 8.52% 8.49% Net Interest Margin(3) 9.25% 12.16% 7.53% 9.04% 12.12% Operating Expense ratio(4)* 5.82% 6.22%
Slide 40: Annexure - P&L Statement– Standalone
Annexure - P&L Statement– Standalone Particulars (Rs. crore) FY21 FY20 YoY% Q1FY22 Q1FY21 YoY% Q4FY21 QoQ % Revenue Interest and Fee Income 1,031 966 291 248 283 Loss/gain due to DA 110 236 -4 14 53 Treasury Income 66 112 15 19 12 BC Income 35 62 7 3 15 Other Operating Income 23 25 8 7 9 Total Reven
Slide 41: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 42: Annexure - P&L Statement – TFSL
Annexure - P&L Statement – TFSL Particulars (Rs. crore) Q1FY22 Q4FY21 Q1FY21 FY21 FY20 Revenue Total Revenue 13.6 17.7 10.4 59.3 69.8 Expenses Finance Cost 1.1 1.3 0.9 4.5 3.2 Employee Benefit Expenses 11.4 12.5 8.5 39.1 38.3 Credit Cost 7.9 10.3 0.8 11.3 13.4 Other Expenses 2.0 3.3 1.6 10.0 14.4 De
Slide 43: Annexure - P&L Statement – SHFL
Annexure - P&L Statement – SHFL Particulars (Rs. crore) Q1FY22 Q4FY21 Q1FY21 FY21 FY20 Revenue Interest and Fee Income 7.7 8.1 5.1 25.8 17.1 Treasury Income 0.1 0.0 0.4 0.3 1.6 Other income 0.6 2.4 0.1 3.5 2.3 Total Revenue 8.4 10.5 5.7 29.6 21.0 Expenses Finance cost 3.9 3.8 3.3 13.6 8.3 Employee b
Slide 44: Annexure - P&L Statement – SFL
Annexure - P&L Statement – SFL Particulars (Rs. crore) Q1FY22 Q4FY21 Q1FY21 FY21 FY20 Revenue Interest and Fee Income 5.8 6.5 5.8 23.8 13.6 Treasury Income 0.0 0.1 0.2 0.4 0.2 Other income 0.1 0.1 0.1 0.6 0.2 Total Revenue 5.9 6.6 6.0 24.8 14.0 Expenses Finance cost 1.1 1.2 1.0 4.4 1.8 Employee bene
Slide 45: Company Background
Company Background
Slide 46: 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 47: 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 48: 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 49: 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 50: 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 51: 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 52: 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 53: 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 — Q1 FY2022 Earnings Presentation on 6ix