Satin Creditcare Reports 10% AUM Growth in Q3 and 9M FY25 Results

Satin Creditcare Network Limited (SCNL) has announced its unaudited financial results for the third quarter and nine months ended 31st December 2024. The financial numbers are based on IndAS.

Consolidated Highlights

Footprints and Outreach 

Standalone Highlights

Update on Q3 and 9M FY25 

• Consistency in disbursement on a QoQ basis, leading to growth in AUM of 3% QoQ & 10% YoY
• PAT for Q3 FY25 stood at Rs. 31 crore; reported 14 consecutive profitable quarters despite sector headwinds
• PAR reversal visible from Nov’24 onwards

1. Net fresh PAR flow is seeing a reversal; significantly reduced from 1.61% in Oct’24 to 0.45% in Jan’25

2. PAR 1 for Satin vs Industry stood at 6.4% vs 13.9%; Satin’s performance better than the industry

3. PAR 1 in top 5 states for Satin vs Industry at 5.6% vs 15.3%; strong client connect is helping us in key states

• Collection Efficiency of X bucket stood at 99.8% during Q3 FY25
• Credit cost for 9M FY25 stood at 5.0% (annualized); within the guided range
• Raised Rs. 6,216 crore during 9M FY25 at group level; maintaining healthy liquidity
• Stable and competent management team; more than 9+ years of vintage of core team in the company

Capital Adequacy and Liquidity

• Our capital base is strong with a capital adequacy ratio of 27.4% as on 31st December’24
• Book Value per share at Rs. 232 on a consolidated basis 
• The Company continues to maintain a healthy balance sheet liquidity of Rs. 1,581 crore as on 31st December’24 and has undrawn sanctions worth Rs. 1,435 crore as on date

Borrowing Profile

• Total on-book borrowings stood at Rs. 7,829 crore as on 31st December’24
• Debt-to-equity ratio as on 31st December’24 stood at 2.8x
• 62% of our borrowings are from banks, followed by overseas funds at 20%, NBFCs at 11% and DFIs at 7%
• The Company has a diversified and large lender base of 75 active lenders

Asset Quality

• On-book Gross Non-Performing Assets stood at 3.9% amounting to Rs. 324 crore 

1. ~69% of portfolio across states has GNPA less than the national average of 3.9%

• We have sufficient on-book provisions amounting to Rs. 322 crore as on 31st December’24, which is 3.9% of on-book portfolio. Provisions required as per RBI is Rs. 136 crore

1. Management Overlay on provisions of Rs. 16 crore; creating buffer for coming quarters

• During 9M FY25, collection against write-offs were Rs. 27 crore 
• Collection efficiency for 9M FY25 stood at 96%

Subsidiaries 

Satin Housing Finance Ltd., witnessed YoY growth of 44% in AUM, which stood at Rs. 872 crore, having presence across 19 states with 8,464 customers 

• 100% retail book 
• GNPA stood at 1.7%
• 31 active lenders including NHB refinance
• CRAR of 59.6% and gearing of 1.9x 
• PAT for 9M FY25 stood at Rs. 2 crore 
• Credit Rating of A- (Stable) from ICRA & Infomerics

Satin Finserv Ltd., our MSME arm, has an AUM of Rs. 479 crore

• Focus on growing MSME on-book portfolio; grew by 50% YoY
• Consciously bringing down JLG BC book
• PAR 90 of ~ 4.94% for sub Rs. 3.5 Lacs ticket size loans, comprising ~98% of total MSME portfolio

1. The GNPA is elevated as we cater to the microfinance graduated clients and currently, the microfinance sector is facing headwinds

• CRAR of 40.2% and gearing of 1.8x 
• PAT for 9M FY25 stood at Rs. 5.2 crore
• Credit Rating A- (Stable) from ICRA

Commenting on the performance, Dr. HP Singh, Chairman cum Managing Director of Satin Creditcare Network Limited, said, “Resilience and adaptability have always been at the core of our journey. Over the years, we have built a business that is not only strong but also agile and responsive to changing market dynamics. Our focus has always been on ensuring financial discipline, operational efficiency and a deep commitment to inclusion at large. 

Our performance in Q3 & 9M FY25 reflects this approach as we achieved AUM growth of 10% YoY to Rs. 10,778 crore, against our guided range of 8% to 10%, while maintaining a disciplined credit cost of 5.0%, which continues to be one of the best in the industry. Additionally, this quarter, we registered a profit of Rs. 31 crore, further reinforcing our track record of 14 consecutive profitable quarters. The third quarter also demonstrated improvements, with a steady reversal in delinquency trends starting from November 2024 and further strengthening in December 2024 and January 2025. This momentum has contributed to both AUM growth and enhanced portfolio quality. Our PAR 1 stood at 6.4%, outperforming industry benchmarks, while PAR 1 in our top five states also remained strong, supported by our deep client connections in key regions. Moreover, collection efficiency in the X bucket stood at an impressive 99.8%, reflecting our success in arresting fresh flows through a focused recovery strategy.

As we look ahead, we are confident that the momentum will only improve as our recovery strategies gain traction. With a strong focus on operational excellence and capitalizing on emerging opportunities, with certain measures being undertaken, we are poised to deliver on a long-term sustainable basis, even better numbers, setting the stage for growth and long-term success.”