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Satin Creditcare spurts after Q4 PAT climbs 33% YoY

29-Apr-24 17:30 Hrs IST

In Q4 FY24, profit before tax increased by 32.92% to Rs 167.36 crore, while its net interest margin improved to 14.16% as compared to 13.20% posted in Q4 FY23.

Asset under management (AUM) stood at Rs 11,850 crore in Q4 FY24, up 30% as compared with Rs 9,115 crore in Q4 FY23.

For FY24, Satin Creditcare Network's profit after tax surged by 59.96% to Rs 422.84 crore on 16.95% jump in total income to Rs 2,050.65 crore in FY24 over FY23.

Pre-provisioning operating profit (PPOP) increased by 80% YoY to Rs 732 crore in FY24 as compared to Rs 406 crore posted in FY23.

The company reported disbursements of Rs 9,691 crore in FY24, up 31% YoY.

The company's total borrowings stood at Rs 7,269 crore, and the debt-to-equity ratio as of 31st March 2024 stood at 2.7x. 66% of the borrowings are from banks, followed by overseas funds at 15%, NBFCs at 10% and DFIs at 9%.

The on-book gross non-performing assets stood at 2.49% amounting to Rs 198 crore as of 31st March 2024, compared to 3.28% as of 31st March 2023 amounting to Rs 185 crore. The collection efficiency for FY24 stood at 98.5%. The company has sufficient on-book provisions amounting to Rs 164 crore as on 31st March 2024, which is 2.1% of on-book portfolio, exceeding the RBI-mandated provision requirement of Rs 148 crore.

HP Singh, chairman& managing director of Satin Creditcare Network, said, ?It was a transformative journey where we redefined what's possible and advanced our inclusive charter with unwavering dedication. This includes surpassing the guided range of our annual performance targets on almost every parameter, robust growth in AUM that is now reaching close to Rs 12,000 crore, long-term credit rating upgrade to A (Stable) from A- (Stable) by ICRA, successful completion of equity infusion of Rs. 250 crore via QIP, receiving the highest ?AA? ESG rating and Gold Level certification for Client Protection Principles, being awarded with the latest standard of ISO 27001:2022 for Information Security, and raising funds close to Rs 10,000 crore

Our consolidated gross loan portfolio grew by 30% YoY to Rs. 11,850 crore at the end of March 2024. We added nearly 6.3 lacs new borrowers, resulting in a borrower base of 34.7 lacs. We recorded our highest yearly disbursement of more than Rs. 10,000 crore, up by 30% Y-o-Y. Our profitability touched a new milestone as we recorded a PAT of Rs. 436 crore.

In alignment with our mission to foster financial inclusion and uplift the underserved segments of our nation, we've opened 158 new branches on a standalone basis and forayed into two new states, Andhra Pradesh and Telangana, extending our geographical presence to 26 states and UTs.

As we embark on the next chapter of our journey, we remain optimistic about demonstrating good growth in the years to come and being at the forefront, making meaningful differences and fulfilling rural aspirations with our diversified financial services.?

The company said both its subsidiaries Satin Housing Finance and Satin Finserv were profitable during FY24. Satin Housing Finance reported a 50% YoY growth in Assets Under Management (AUM), reaching Rs 756 crore. Its Gross Non-Performing Assets (GNPA) stood at 0.8%. The company has 26 active lenders and a CRAR of 49.2% with gearing of 2.2x. In FY24, the company reported a PAT of Rs 9 crore.

Satin Finserv, the company's MSME and business correspondent lending arm, has an AUM of Rs 501 crore, with a GNPA of 4.3%. The company has a CRAR of 48% and gearing of 1.42x. In FY24, the company reported a PAT of Rs 5 crore.

Satin Creditcare Network is a leading microfinance institution (MFI) in the country with presence in 26 states & union territories and 95,000 villages. The company also offers a bouquet of financial products in the Non-MF segment, comprising of loans to MSMEs, affordable housing loans to MSMEs, affordable housing loans, and business correspondent services.