Satin Creditcare Network (SATIN) Q3 24/25 earnings summary

Executive summary

• Achieved 14 consecutive profitable quarters, with Q3 FY25 profit at INR 31 crore, reflecting strong operational efficiency and resilience despite sector headwinds.

• Recognized as Microfinance Organization of the Year at the Global Inclusive Finance Summit 2024 and among top 15 companies with great managers.

• 34-year legacy as a resilient, professionally run rural financial services provider with strong promoter commitment and a seasoned management team.

• Diversified portfolio through subsidiaries in secured asset classes, leveraging technology and robust underwriting.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board and Audit Committee, with no material misstatements identified by auditors.

Financial highlights

• Consolidated revenue for nine months FY25 grew 24% YoY to INR 1,979 crore; standalone revenue up 25% to INR 1,815 crore.

• Consolidated PAT for nine months FY25 at INR 176 crore; Q3 FY25 PAT at INR 31 crore; 14 profitable quarters in a row.

• Gross loan portfolio increased 10% YoY to INR 10,778 crore; consolidated AUM up 10% YoY to INR 12,128 crore.

• Pre-provisioning operating profit (PPOP) rose 26% YoY to INR 625 crore consolidated; standalone PPOP up 29% to INR 610 crore.

• Gross NPA at 3.9% as of December 2024; credit cost for 9MFY25 at 5.0% (annualized), within guided range.

Outlook and guidance

• Guidance for AUM growth remains at 8%-10% YoY, with credit cost guidance at 4.5%-5% annualized for FY25.

• Management aims to reduce credit cost below 3% in the coming years, prioritizing asset quality over aggressive growth.

• Disbursement growth to remain cautious in Q4, with focus on asset quality and profitability; growth expected to resume at 10%-15% once normalization is achieved.

• Confident of maintaining credit cost within guided limits due to reversal in delinquency trends.