Satin Creditcare Network (SATIN) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 was challenging due to heat waves, general elections, and seasonal slowdown in agriculture, but proactive risk management ensured portfolio stability.

• AUM grew 23% YoY to ₹11,706 crore, with borrower base up 15% to 35.1 lakh and branch network expanding to 1,447, including entry into Nagaland.

• Profit after tax increased 20% YoY to ₹105 crore, with total revenue rising 37% to ₹634 crore and pre-provision operating profit up 60% to ₹213 crore for Q1 FY25.

• Recognized as Dominant Microfinance of the Year and among top 100 companies to work for in India 2024.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board and statutory auditors, with no material misstatements identified.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹63,265.92 lakhs, up from ₹46,233.45 lakhs in Q1 FY24.

• Consolidated net interest income rose 38% YoY to INR 383 crore; pre-provisioning operating profit up 60% to INR 213 crore.

• PAT grew 20% YoY to INR 105 crore; ROA at 4%, ROE at 17.2%.

• NIM for the quarter stood at 13.4%; consolidated gross yield at 21.54%.

• Standalone PAT at INR 103 crore; net worth at INR 2,78,296.65 lakhs.

Outlook and guidance

• AUM growth guidance revised to 20% YoY for FY25 on a consolidated basis.

• No change in credit cost guidance for now; will update after Q2 as seasonal and extraordinary events settle.

• Branch expansion target of 300 for FY25, with 100 already opened.

• Focus on maintaining a diversified portfolio with a healthy proportion of secured assets and independent subsidiary operations.

• Enhancing risk framework, refining onboarding, and investing in technology to improve operational efficiency and credit quality.