Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q1 FY2024 Earnings Presentation
44 slides from Satin Creditcare Network's earnings presentation, July 2023
Slide 1: Investor Presentation July 2023
Investor Presentation July 2023 Relentless Exploring Prospects. Growing footprint.
Slide 2: Presentation Path
Presentation Path 03 - 14 15 - 24 Business Update Satin a Compelling Investment Story 25 - 34 35 - 44 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 3: Consolidated Snapshot
Consolidated Snapshot Growth momentum continues with… Rs. 9,535 crore Rs. 2,122 crore AUM DISBURSEMENT YoY 26% YoY 24% Best Growth in Q1 in last 5 years at 26% YoY 30.5 Lacs 1,310 ACTIVE CLIENTS BRANCHES Highest ever Q1 disbursement in last 5 years YoY 12% YoY +84 Active Clients crosses 3 million ma
Slide 4: Standalone Snapshot
Standalone Snapshot Rs. 8,367 crore Rs. 1,980 crore 27.9 Lacs 2.5% 1,096 AUM DISBURSEMENT ACTIVE CLIENTS GNPA BRANCHES YoY 31% YoY 27% YoY 17% YoY 182 bps YoY +63 Operational Efficiencies Playing Out 5.8% 48.9% 25.0% 4.3% 17.5% OPEX RATIO COST TO INCOME CAPITAL ADEQUACY RETURN ON ASSETS RETURN ON EQ
Slide 5: Expanding AUM to New Frontiers
Expanding AUM to New Frontiers (Rs. crore) AUM YoY +31% • On track to achieve the guided growth of 25%+ 7,929 8,367 6,798 6,389 6,417 • Strong net customer addition of ~2.3 Lacs in Q1FY24 • 43% first cycle clients as on Q1FY24 • Added 21 new branches during the quarter Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1
Slide 6: Harnessing Operational Efficiencies to Drive Sustainable Growth
Harnessing Operational Efficiencies to Drive Sustainable Growth Loan Accounts / Branch Loan Accounts / Loan Officer YoY 2,664 466 +8% YoY +12% 2,494 436 436 439 2,465 2,391 QoQ QoQ 2,357 415 +7% +6% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GLP (Rs. crore) / Branch GLP (R
Slide 7: Robust Underwriting Powering Stellar Asset Quality
Robust Underwriting Powering Stellar Asset Quality Asset Quality Portfolio originated Jul’21 onwards 9.2% PAR 1 PAR 90 0.9% 5.8% 4.9% Constitutes 4.3% ~96% of on- 0.5% 3.8% 3.9% 3.0% book MFI 3.9% 3.3% 2.5% portfolio Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 PAR 1 PAR 90 • On-book GNPA stood at Rs. 155 cro
Slide 8: Best Portfolio Quality in Industry post Pandemic
Best Portfolio Quality in Industry post Pandemic Portfolio originated Jul’21 onwards showing excellent performance PAR 1 PAR 90 5.4% 3.3% SCNL 4.8% 4.4% 2.6% 0.9% 2.5% PAR 1 SCNL 0.9% 0.5% 0.5% PAR 90 NBFC-MFI (excl. Satin) SFBs Banks + Others SCNL^ 8 ^Data of SCNL for JLG on-book portfolio Data ava
Slide 9: Accelerating Financial Performance Quarter on Quarter
Accelerating Financial Performance Quarter on Quarter PAT (Rs. crore) RoA & RoE YoY +43% RoA YoY 94 RoE RoA: + 104 bps 86 RoE: + 281 bps 20.3% 60 55 55 14.7% 17.5% 12.8% 12.4% 4.9% 3.2% 3.0% 2.9% 4.3% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Opex to Avg AUM Cost to Incom
Slide 10: Optimal Liquidity and Robust Capitalization
Optimal Liquidity and Robust Capitalization 66% YoY growth in funds raised during the quarter; ~81% on book borrowing • CRAR of 25.0% as on Jun’23; well above regulatory guidelines Funds Raised during 1,291 2,148 • As on date, the Company has successfully completed the quarter (Rs. crore) preferenti
Slide 11: Spotlight: Prestigious Accolades
Spotlight : Prestigious Accolades Ranked 30th amongst the ‘Top 100 Won Skoch Award in the Silver India’s Best Companies to Work for Category For Loan Management 2023’ across all industries System 11
Slide 12: Navigating the Path Ahead: Our Strategic Guidance
Navigating the Path Ahead: Our Strategic Guidance Guidance Actual Q1FY24 AUM Growth of Growth of 31% YoY 25% + RoA 4.3% 3.5% + (annualized) Guidance for FY24 12
Slide 13: SHFL - Leveraging the Outreach through Affordable Housing
SHFL - Leveraging the Outreach through Affordable Housing Operations across 4 States 32 Branches Rs. 514 crore 100% • Impeccable track record of 5+ years AUM Retail Book • AUM grew by 55% YoY to reach Rs. 514 crore • Clients belonging to middle and low-income groups from tier II and below cities 46.
Slide 14: SFL - Leveraging the Outreach through Retail MSME
SFL - Leveraging the Outreach through Retail MSME Operations across 10 States 182 Branches Rs. 654 crore Focus on secured • On book AUM increased 43% YoY to reach Rs. 251 crore retail MSME AUM lending • Huge untapped potential of the missing middle of small ticket business loans averaging <= Rs. 2 L
Slide 15: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story
Slide 16: 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 Positive ALM with Ample Liquidity 07 Strong & Experienced Manag
Slide 17: Differentiated Product Offerings
1. Differentiated Product Offerings Satin Housing Finance SCNL Satin Finserv Limited (3) Limited (2) Product features Business Correspondent MFI(1) Housing Finance MSME as on Jun’23 Services Start Date May’08 (JLG) Feb’18 May’12 Mar’19 Upto Rs. 50,000 Ticket Size Range Upto Rs. 75,000 Rs. 100,000 –
Slide 18: Deepening Impact through Enhanced Value Creation
…Deepening Impact through Enhanced Value Creation Satin finances product purchase of solar lamps, bicycles, consumer durables etc. and grants loan for safe water and sanitation facilities Financed ~Rs. 45 crore during Q1FY24 Enriching Lives Benefits Green Loans Consumer Durables Enhances the produ
Slide 19: Diversified Geographical Presence
2. Diversified Geographical Presence …serving 30.5 Lacs clients across India Presence across 24 States and UT’s 96,000 1,310 No. ofAUM – 9,115 Villages No. of Branches 100% 407 96.1% No. of Districts Districts with <1% exposure 80 3.0 Lacs No. of Regional Offices No. of Centres Top 4 States Top 4 St
Slide 20: 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.O lever to facilitate digital repayment of loan website autopay installments during the center meetings • Clients temporarily migrating for •
Slide 21: 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 22: We have a well-diversified Liability Profile
5. We have a well-diversified Liability Profile… Large Lender Base Product-wise Jun’23 70 Active Lenders 0.9% Top 10 Lending Partners % Share 6.7% State Bank of India 16% Term Loan & PTC Bank of Maharashtra 8% 25.1% NCD Direct Assignment Blue Orchard Microfinance Fund 6% 55.5% ECB IDFC First Bank Li
Slide 23: Positive ALM with Ample Liquidity
6. Positive ALM with Ample Liquidity Benefit of Positive ALM Continues 24.9 25.9 25.0 24.3 18.2 18.5 16.0 14.5 FY21 FY22 FY23 Q1FY24 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 30th Jun’23 (Rs. crore) Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Total Inflows Liquidity at the
Slide 24: Successfully Navigated Crisis During Legacy of Over 30 Years
Successfully Navigated Crisis During Legacy of Over 30 Years Implementation of best-in-class technology Strong Capitalization with Ample Liquidity • Reduced TAT • Capital Adequacy has improved from 18.3% in 2016 to 25.0% currently • Real-time data • Raised Rs. 1,009 crore equity capital Learning
Slide 25: Key Financial & Operational Metrics
Key Financial & Operational Metrices
Slide 26: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,257 1,224 1,287 1,3101 8,090 8,774 7,449 7,6262 12,726 12,705 23 23 24 24 11,131 11,291 2,114 1,969 1,909 1,961 388 404 405 407 10,612 10,736 9,222 9,330 FY21 FY22 FY23 Q1FY24 FY21 FY22 FY23 Q1FY24 Districts States Bran
Slide 27: Business Details
Business Details Particulars Q1FY24 Q1FY23 YoY% Q4FY23 QoQ% AUM (Rs. crore) 9,535 7,569 26.0% 9,115 4.6% SCNL 8,367 6,389 7,929 On-book AUM* 6,232 5,042 5,650 Assignment 2,117 1,304 2,258 Business Correspondence 18 44 21 SHFL 514(1) 331 505 SFL 654 850 682 Business Correspondence 403 674 456 AUM Mix
Slide 28: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio 1,762 64.8% 1,273 58.0% 1,262 53.8% 48.9% 422 FY21 FY22 FY23* Q1FY24 FY21 FY22 FY23 Q1FY24 NII and PAT (Rs. crore) Opex to Avg AUM NII PAT 1,186 6.2% 6.3% 5.8% 5.3% 659 656 264 252 40 86 -14 FY21 FY22 FY23* Q1FY24 FY21 FY22 FY23
Slide 29: Financial Details (Standalone)
Financial Details (Standalone)
Slide 30: Annexure - Financial Performance - Standalone
Annexure - Financial Performance - Standalone Particulars (Rs. crore) Q1FY24 Q1FY23 Q4FY23 FY23 FY22 Gross yield (1) 20.48% 19.44% 21.57% 19.66% 18.44% Financial Cost Ratio(2) 8.35% 9.39% 7.93% 8.04% 8.86% Net Interest Margin(3) 12.13% 10.05% 13.64% 11.62% 9.58% Operating Expense ratio(4) 5.81% 7.14
Slide 31: Annexure - P&L Statement - Standalone
Annexure - P&L Statement - Standalone Particulars (Rs. crore) Q1FY24 Q1FY23 Q4FY23 FY23 FY22 Revenue Interest and Fee Income 357 266 298 1,094 1,109 Gain due to DA 36 13 69 210 50 Treasury Income 14 375* 14 413* 65 BC Income 0 2 0 4 19 Other Operating Income 15 6 15 41 19 Total Revenue 422 662 397 1
Slide 32: Financial Details (Subsidiaries)
Financial Details (Subsidiaries)
Slide 33: Annexure - P&L Statement - SHFL
Annexure - P&L Statement - SHFL Particulars (Rs. crore) Q1FY24 Q1FY23 Q4FY23 FY23 FY22 Revenue Interest and Fee Income 17.3 10.4 16.4 52.9 34.3 Treasury Income 0.5 0.4 0.6 2.0 0.8 Other income 0.8 1.0 2.5 7.0 3.0 Total Revenue 18.5 11.8 19.5 61.9 38.0 Expenses Finance cost 10.4 5.9 8.0 28.2 17.1 Emp
Slide 34: Annexure - P&L Statement - SFL
Annexure - P&L Statement - SFL Particulars (Rs. crore) Q1FY24 Q1FY23 Q4FY23 FY23 FY22 Revenue Interest and Fee Income 25.1 26.6 25.6 102.6 90.5 Treasury Income 1.0 0.7 0.6 2.9 3.4 Other income 0.7 0.4 0.2 1.0 3.2 Total Revenue 26.8 27.7 26.4 106.5 97.1 Expenses Finance cost 6.1 4.2 5.4 18.5 12.5 Emp
Slide 35: Company Background
Company Background
Slide 36: 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 37: 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 38: 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 39: 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 40: With Customised Products as per Client Needs
…With Customised Products as per Client Needs Income Generation Loan Long Term Loan (Prarambh) (Vriddhi) Product Financing WASH Loan Ticket Size : Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 45,000 Rs. 31,000 – Rs. 75,000 Rs. 2,000 – Rs. 32,000 Rs. 10,000 – Rs. 35,000 Tenure : 12 - 24
Slide 41: SDGs in the Core of Our Community Connect Activities
SDGs in the Core of Our Community Connect Activities Scholarship to the Financial Literacy Workshops Health Camps Underprivileged Students In collaboration with RBI and Sa-Dhan, as of In collaboration with our partner DocOnline, With our aim to promote inclusive date, we have conducted 15 workshops
Slide 42: Awards and Accolades
Awards and Accolades Mr. HP Singh bestowed with the ‘India’s Most Trusted’ Award by GPTW, India Mr. HP Singh was 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. Dhira
Slide 43: 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 7 members; 5 • Constructively working towards safe water knowledge and the strong bond that we have Independent directors of
Slide 44: 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
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