Satin Creditcare Network registers net profit Rs. 41 Cr for Q1FY20 - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Monday, August 12, 2019

Satin Creditcare Network registers net profit Rs. 41 Cr for Q1FY20



Satin Creditcare Network Limited registers profit after tax (PAT) of Rs. 41 Cr for Q1FY20, up by 48.6% YoY

Satin Creditcare Network Limited (“SCNL”) [BSE: 539404; NSE: SATIN], one of the leading microfinance company in the country, today announced a 48.6% YoY growth in its PAT at Rs. 41 Crfor Q1FY20 (Rs.28 Cr in Q1FY19) on consolidated basis. The company recorded a PBT of Rs. 64 Cr for Q1FY20, up by 55.7% YoY (Rs. 41 Cr in Q1FY19).

The company recorded strong Capital Adequacy Ratio (CRAR) of 30.5% .The results were taken on record at the meeting of the Board of Directors here today.

Financial Performance: (On consolidated basis)

In Rs. Cr
Q1FY20
Q1FY19
YoY %
Gross Loan Portfolio (GLP)
7,139
6,026
18.5%
Net Interest Income
201
174
15.6%
Profit Before Tax (PBT)
64
41
55.7%
Profit After tax (PAT)
41
28
48.6%
Return on Assets (RoA)
2.4%
1.7%
45.3%
Return on Equity (RoE)
13.4%
11.7%
14.2%

Increasing Footprints:

Q1FY20
Q1FY19
YoY %
Branches
1,228
1,017
20.7%
No. of Clients
36,04,373
30,02,567
20.0%
Districts
368
325
13.2%

Business Performance:


·       Equity infusion via Conversion of warrants worth Rs 60 cr by Promoter and OCCRPS worth Rs 45 cr by IndusInd Bank Ltd at Rs 335 per share
·       Only lender to 57% clients at the time of disbursement

·       Business Correspondent business with IndusInd Bank reached Rs. 647cr AUM

·       Social rating sA from Microfinanza, C1 Code of Conduct Assessment (COCA) from ICRA, the highest grade

·       Received ‘First place’ amongst all MFIs in Customer Service Index evaluation conducted by MFIN for fair practices code, policies and processes

·       Loan Dost”, the digital lending platform to now offer loans to self-employed class along with salaried clients

·       Pan India presence servicing more than 36 lacs clients across 368 districts with differentiated financial offerings

·       Raised Rs.1,428cr of incremental funds during the quarter and undrawn sanctions worth Rs. 1,412 cr.

·       Focused on Portfolio quality with technology and process advancements
·       Subsidiaries:

·       Taraashna Financial Services to be converted to NBFC

·       Satin Housing Finance Ltd crossed AUM of 100 cr with nil delinquency

·       Satin Finserv Limited crossed AUM of 30 cr

Speaking on the company's performance during the quarter, Mr. H P Singh, Chairman and Managing Director said, “We delivered strong growth despite challenging environment faced by NBFC industry. We have achieved 48.6% YoY growth with profit after tax standing at Rs. 41 Cr. The company aims to be one-stop solution provider by leveraging its rural outreach. In this regard Satin has rolled out separate subsidiaries namely Satin Housing Finance (to focus on housing finance) and Taraashna Financial Services  (Business Correspondent) and Satin Finserv (focus on MSME segment).  We continued to deepen our presence in the underserved rural/semi-urban areas, across 22 states and union territories. To achieve this, we have curated our business strategy on four core pillars; geographical expansion, portfolio diversification, asset quality and strategic partnership with financial institutions.”

He further added “Our management has strategically decided to diversify revenue stream by increased cross-sell of products within Satin’s ecosystem. Over the past couple of years Satin has made significant investment towards technology and developed a state-of-art in-house digital platform to become the first microfinance company to foray into Fintech. We believe there are growth opportunities available for microfinance players with strong balance sheet and non-urban focused business model.”


Satin Creditcare Network Limited (SCNL or Satin) is a leading microfinance institution (MFI) in the country with presence in 22 states and around 80,768 villages. The company mission is to be one stop solution for excluded households at the bottom of the pyramid for all their financial requirements.
The company also offers a bouquet of financial products in the Non-MFI segment (comprising of loans to MSMEs), a housing finance subsidiary, and business correspondent services and similar services to other financial Institutions through Taraashna Financial Services Limited, a business correspondent company and a 100% subsidiary of SCNL.

In April 2017, SCNL incorporated a wholly owned housing finance subsidiary (Satin Housing Finance Limited or “SHFL”) for providing loans to the affordable housing segment.

In January 2019, received separate NBFC license to commence MSME business, Satin Finserv Limited. SCNL forayed in digital lending “Loan Dost” to target millennials.

As of June 2019, SCNL had 1,228 branches and a headcount of 11,085 across 22 states and union territories serving 36 lakh clients. A pan-India player with a strong presence throughout Uttar Pradesh, Bihar, North East, Madhya Pradesh and is a dominant player in its other states of operations.

Disclaimer
This document may contain certain forward looking statements within the meaning of applicable securities law and regulations. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. Many factors could cause the actual results, performances, or achievements of the Company to be materially different from any future results, performances, or achievements. Significant factors that could make a difference to the Company’s operations include domestic and international economic conditions, changes in government regulations, tax regime and other statutes. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company

Satin Creditcare Network Ltd.

CIN: L65991DL1990PLC041796
Corporate Office: 1st& 3rd Floor, Plot No. 97, Sector 44, Gurugram – 122 003
Landline No: +91 124 471 5400
Registered Office: 5th Floor, KundanBhawan, Azadpur Commercial Complex, Azadpur, Delhi-110 033


For further information, please contact:

Ms. Asleen Kaur
Satin Creditcare Network Ltd
Mob: 9711306384
Mr. Harsh Trivedi
Adfactors PR
(M): 9987218372





Satin Creditcare Network registers net profit Rs. 41 Cr for Q1FY20 Reviewed by Investment Guru on August 12, 2019 Rating: 5 Satin Creditcare Network Limited registers profit after tax (PAT) of Rs. 41 Cr for Q1FY20, up by 48.6% YoY Satin Creditcare Network...

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