Satin Creditcare Network (SATIN) Q2 24/25 earnings summary

Executive summary

• Celebrated 34 years of operations, emphasizing financial inclusion and expansion into diversified rural financial solutions, with a focus on technology-driven BFSI solutions through Satin Technologies Limited.

• Consolidated AUM reached INR 11,749 crore, up 16% YoY for H1FY25; active clients increased 8% to 34.6 lakh and branch network expanded 10% to 1,463 branches.

• Profit after tax for H1FY25 stood at INR 150 crore, with total revenue up 30% to INR 1,292 crore and PPOP up 34% to INR 411 crore year-over-year.

• Subsidiaries SHFL and SFL reported strong AUM growth of 50% and 48% YoY, respectively, with robust asset quality and minimal NPAs.

• Management highlighted resilience amid industry disruptions from heat waves, elections, and monsoons, with proactive risk management and strengthened risk, audit, and collection processes.

Financial highlights

• Consolidated AUM grew 16% YoY to INR 11,749 crore; standalone AUM up 18% YoY to INR 10,463 crore.

• Revenue for H1 FY25 rose 30% YoY to INR 1,292 crore (consolidated); standalone revenue at INR 1,183 crore, also up 30%.

• PPOP increased 34% YoY to INR 411 crore (consolidated); PAT at INR 150 crore, ROA 2.8%, ROE 12.1%.

• On-book GNPA at 3.5% (INR 286 crore); provision coverage ratio at 99%.

• Borrower base grew 8% YoY to 34.6 lakhs; branch network expanded 10% YoY to 1,463.

Outlook and guidance

• FY25 AUM growth guidance revised to 8%-10% (down from 25%); credit cost expected at 4.5%-5%.

• Secured book targeted to grow 40%-50% YoY, aiming for 25%-30% of total AUM in three years.

• ROA expected in the 2%-3% range, ROE at 8%-10%.

• Continued focus on secured financing and investment in subsidiaries and new business lines.