Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — H1FY25 Earnings Presentation
47 slides from Satin Creditcare Network's earnings presentation, Nov 8, 2024
Slide 1: Intimation of Investor Presentation to stock exchanges
November 8, 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
Slide 2: Investor Presentation November 2024
INVESTOR PRESENTATION NOVEMBER 2024 Growing with Grit Conquering with Capability
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
Slide 4: Implementation of SRO Guardrails
Implementation of SRO Guardrails MFIN Guardrails and Sa-Dhan’s SANKALP Guidelines were introduced in the month of Jul’24 to ensure responsible MFI lending practices ` I. Restrict the number of microfinance lenders per borrower II. Limit the total microfinance indebtedness to Rs. 2 Lacs to a maximum
Slide 5: Asset Quality Update (1/2)
Asset Quality Update (1/2) PAR trend PAR in Top 4 states 6.8% % on- On-book CE % State book Portfolio PAR 1 PAR 30 PAR 60 PAR 90 4.6% H1FY25 5.2% portfolio (Rs. crore) 3.5% 3.5% 3.2% Uttar Pradesh 27.2% 2,207 97.3% 4.9% 3.6% 2.8% 2.2% 3.7% 2.8% 3.0% 3.2% 4.3% 2.6% 2.8% 3.1% Bihar 14.8% 1,198 97.8% 4
Slide 6: Asset Quality Update (2/2)
Asset Quality Update (2/2) % of On-book On-book Portfolio CE % State GNPA % Portfolio (Rs. crore) H1FY25 Odisha 4.7% 378 6.4% 90.7% Punjab 4.4% 356 5.2% 92.8% Rajasthan 3.8% 310 6.9% 93.1% Jharkhand 3.0% 242 6.0% 92.1% Maharashtra 1.2% 99 6.7% 92.8% • Above 5 states comprise of ~17% of on-book portf
Slide 7: Initiatives Undertaken to Address the Macro Challenges
Initiatives Undertaken to Address the Macro Challenges Sourcing to disbursement is ~37%, driven by stringent guidelines, scorecards and underwriting aligned with RBI and SRO guidelines No over-leveraging: 1 loan to 1 client policy Stopped disbursement to New to Credit clients in 561 branches; increa
Slide 8: Other Key Updates
Other Key Updates Raised Rs. 3,852 crore during H1FY25 at group level; maintaining healthy liquidity Healthy Capital Position with CRAR of 28.8% as on Sep’24 In this financial year, more than 50% of customers have received a benefit of reduced rate of interest Stable and competent management team, w
Slide 9: Important Update – KUA/AUA License from RBI
Important Update – KUA/AUA License from RBI Digital Traditional KYC e-KYC Manual verification through Digital and automated human agents verification process Time consuming & slower Swift and instant results Extensive paper work & No paper work required (Go forms Green) High chances of fraud Minimal
Slide 10: Revised Guidance for FY25
Revised Guidance for FY25 Guidance Actual H1FY25 AUM Growth Growth of 8% - 10% 18% YoY Credit Cost 3.9% 4.5% - 5.0% (Annualized) 9 On a standalone basis
Slide 11: Consolidated Highlights – H1FY25
Consolidated Highlights – H1FY25 (YoY change) Rs. 11,749 crore Rs. 1,292 crore Assets Under Management Total Revenue Up by 16% Up by 30% 01 05 Rs. 4,733 crore Rs. 411 crore Disbursement 02 06 PPoP Up by 5% Up by 34% Snapshot 34.6 Lacs 03 07 Rs. 150 crore Active Clients Profit after Tax Up by 8% Rs.
Slide 12: Consolidated Financial Performance
Consolidated Financial Performance Particulars H1FY25 Q2FY25 Q2FY24 Q1FY25 FY24 Gross yield (1) 21.90% 22.42% 21.94% 21.54% 21.37% Financial Cost Ratio(2) 8.76% 9.08% 8.83% 8.52% 8.60% Net Interest Margin(3) 13.13% 13.35% 13.11% 13.02% 12.78% Operating Expense ratio(4) 6.17% 6.60% 6.09% 5.80% 5.80%
Slide 13: Standalone Highlights – H1FY25
Standalone Highlights – H1FY25 (YoY change) Rs. 10,463 crore Rs. 1,183 crore Assets Under Management Total Revenue Up by 18% Up by 30% 01 05 Rs. 4,272 crore Rs. 398 crore Disbursement 02 06 PPoP Up by 2% Up by 36% Snapshot 33.9 Lacs 03 07 28.8% Active Clients CRAR Up by 14% Increased by 309 bps 04 0
Slide 14: Standalone Financial Performance
Standalone Financial Performance Particulars H1FY25 Q2FY25 Q2FY24 Q1FY25 FY24 Gross yield (1) 22.47% 22.95% 22.80% 22.09% 22.14% Financial Cost Ratio(2) 8.97% 9.27% 9.28% 8.71% 8.99% Net Interest Margin(3) 13.50% 13.68% 13.52% 13.38% 13.15% Operating Expense ratio(4) 5.95% 6.38% 5.89% 5.54% 5.60% Lo
Slide 15: Our Subsidiaries
Our Subsidiaries
Slide 16: SHFL - Leveraging the Outreach through Affordable Housing
SHFL - Leveraging the Outreach through Affordable Housing • AUM at Rs. 850 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 huge opportunity to
Slide 17: SFL - Leveraging the Outreach through Retail MSME
SFL - Leveraging the Outreach through Retail MSME On-book AUM increased 48% Huge untapped potential of the missing middle YoY to reach Rs. 396 crore of small ticket business loans averaging ~Rs. 2 Lacs secured against collateral Leveraging SCNL Outreach – 2nd cycle Focus on secured retail MSME + cus
Slide 18: Satin Tech – Leveraging on In-house Technology
Satin Tech – Leveraging on In-house Technology • Rolled out a wholly owned subsidiary focused on innovating and developing cutting-edge technological solutions across various industries, with a strong emphasis on financial services • Offers an advanced Human Resource Management System (HRMS) and Loa
Slide 19: Our Investment Strengths
Our Investment Strengths
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
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 Sep’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
Slide 22: Diversified Geographical Presence
Diversified Geographical Presence Presence across 29 States and UTs 1,463 105 No. of Regional Offices No. of Branches 473 2.9 Lacs No. of Districts No. of Centers 96.8% Districts with <1% exposure Top 4 States Top 4 States (55%) 6.7% Uttar Pradesh 8.8% Next 6 states (28%) 25.8% Bihar West Bengal Rem
Slide 23: Well-diversified Liability Profile
Well-diversified Liability Profile Large Lender Base Product-wise Sep’24 76 Active Lenders 0.5% Top 10 Lending Partners % Share 8.2% State Bank of India 14% Term Loan & PTC 18.6% Bank of Baroda 9% Direct Assignment 49.2% NCD Bank of Maharashtra 8% ECB SIDBI 5% 23.5% Commercial Paper Blue Orchard* 5%
Slide 24: Positive ALM with Ample Liquidity
Positive ALM with Ample Liquidity Benefit of Positive ALM Continues 27.7 27.7 25.9 24.3 18.2 17.8 16.8 16.0 FY22 FY23 FY24 H1FY25 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 30th Sep’24 (Rs. crore) Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Total Inflows Liquidity at the beg
Slide 25: Strong Management Team
Strong Management Team HP Singh Jugal Kataria Group Controller Chairman cum Managing Director Aditi Singh Anil Kwatra Sunil Yadav Manoj Agrawal Chief Strategy Officer Chief Business Officer Chief Information Officer Chief Financial Officer Dhiraj Jha Bhuvnesh Khanna Amit Sharma Rupinder Kalia 24 Chi
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
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 28.8% currently • Real-time data • Raised Rs. 1,259 crore equity capital Lea
Slide 28: Our Operational & Financial Prowess
Our Operational & Financial Prowess
Slide 29: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,224 1,286 1,393 1,463(1) 8,774 7,449 9,309 11,889(2) 12,705 11,131 12,896 16,615 29 1,462 26 23 24 473 1,969 1,533 404 405 421 1,909 15,153 10,736 11,363 9,222 FY22 FY23 FY24 H1FY25 FY22 FY23 FY24 H1FY25 Districts State
Slide 30: Business Details
Business Details Particulars Q2FY25 Q2FY24 YoY% Q1FY25 QoQ% AUM (Rs. crore) 11,749 10,100 16.3% 11,706 0.4% SCNL 10,463 8,894 10,485 On-book AUM 8,109 6,588 8,021 Assignment 2,353 2,295 2,464 Business Correspondence 0.06 - - SHFL 850(1) 567 769 SFL 435 638 452 Retail MSME 396 267 353 AUM Mix (Rs. cr
Slide 31: Financial Details (Standalone)
Financial Details (Standalone)
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% 44.0% 1,183 FY22 FY23* FY24 H1FY25 FY22 FY23 FY24 H1FY25 NII and PAT (Rs. crore) Opex to Avg AUM NII PAT 1,177 1,218 6.2% 6.3% 5.9% 5.6% 711 656 423 264 144 40 FY22 FY23* FY24 H1FY25 FY22 FY23 FY24 H1FY25 3
Slide 33: P&L Statement
P&L Statement Particulars (Rs. crore) Q2FY25 Q2FY24 Q1FY25 FY24 FY23 Revenue Interest Income 511.3 396.7 510.6 1,670.3 1,113.8 Gain due to DA 59.6 62.7 44.3 257.0 201.5 Treasury Income 26.4 24.4 21.6 89.5 412.6* BC Income 0.0 0.0 - 0.1 4.0 Other Operating Income 3.6 8.1 5.6 33.7 21.5 Total Revenue 6
Slide 34: Financials (Subsidiaries)
Financials (Subsidiaries)
Slide 35: P&L Statement - SHFL
P&L Statement - SHFL Particulars (Rs. crore) Q2FY25 Q2FY24 Q1FY25 FY24 FY23 Revenue Interest and Fee Income 21.2 14.7 16.5 67.0 52.9 Treasury Income 0.7 2.1 2.8 5.2 2.0 Other income 6.2 6.0 3.2 20.2 7.0 Total Revenue 28.1 22.8 22.5 92.3 61.9 Expenses Finance cost 14.9 10.8 13.2 44.3 28.2 Employee be
Slide 36: P&L Statement - SFL
P&L Statement - SFL Particulars (Rs. crore) Q2FY25 Q2FY24 Q1FY25 FY24 FY23 Revenue Interest and Fee Income 28.5 29.6 27.9 115.1 102.6 Treasury Income 0.8 0.8 1.2 3.9 2.9 Other income 0.5 0.5 0.6 2.4 1.0 Total Revenue 29.8 30.8 29.6 121.4 106.5 Expenses Finance cost 8.7 6.8 8.3 26.4 18.5 Employee ben
Slide 37: The Tale Behind Our Company
The Tale Behind Our Company
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(
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
Slide 40: Capital Structure
Capital Structure Promoter Group 26.4% Market Cap of Book Value^ Florintree Ventures LLP 36.2% ~ Rs. 2,138 crore Rs. 230/ share Key Institutional Investors Other FII's No. of Equity No. of Bodies Corporate Shares Shareholders 15.3% Retail & Others 11.05 crore ~51,000 1.6% 11.1% 9.4% Market • 15 roun
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
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
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
Slide 44: Community Connect Activities Centered Around SDGs
Community Connect Activities Centered Around SDGs Enriching the Growth of Students at GNA University Financial Literacy Workshops This financial year, we continue to support In collaboration with the RBI and Sa-Dhan, we scholarships for underprivileged students at conducted 12 workshops this quarter
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. Ju
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
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
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