Satin Creditcare Network Limited Q1FY21: Resilient Performance Backed by Strong Collections and Lower NPAs
Satin Creditcare Network Limited Q1FY21: Resilient Performance
Backed by Strong Collections and Lower NPAs
India, September 02, 2020: Satin Creditcare Network Limited (SCNL) (NSE: SATIN, BSE: 539404), one of the leading microfinance companies in the country, has announced its unaudited financial results for the first quarter ended 30th June 2020. The financial numbers are based on IndAS.
Financial Performance (On a Consolidated Basis)
The assets under management (AUM) stood at Rs 8,119 crores in FY21 as compared to Rs 7,139 crores in FY20, a YoY growth of +14%. Net Interest Income stood at Rs 150 crores in FY21 as compared to Rs 199 crores in FY 20, a YoY growth of -25%. Pre-Provisioning Operating Profit (PPOP) stood at Rs 50 crores as compared to Rs 84 crores in FY 20, a YoY growth of -40%. Profit After Tax (PAT) stood at Rs 13 crores as compared to Rs 41 crores, a YoY growth of -69%. Profits & return ratios impacted due to higher provisions made on account of COVID-19, nationwide lockdowns, and other external factors during the quarter. During Q1FY21, Micro Finance Disbursements stood at Rs. 54 crores. Disbursement activities got impacted on account on nationwide lockdown. As on 30th June 2020, the Assigned Portfolio stood at Rs. 2,009 crores. As on 30th June 2020, Business Correspondence through IndusInd Bank (in the SCNL Book) stood at Rs. 519 crores
Commenting on the performance, Mr. HP Singh, Chairman & Managing Director of Satin Creditcare Network Limited, said
“The abrupt halt of economic activities during the COVID-19 crisis, has had a major impact on businesses across economies and sectors. Barring few essential services, all commercial activities stood at complete halt due to imposition of nationwide lockdown, until May-2020 when things started to stabilize with staggered lifting up of lockdown restrictions. Despite this, we managed to grow our AUM by 14% to Rs. 8,118 crores Y-o-Y.
As major impact of pandemic and lockdowns was felt in quarter one of FY21, we believe our performance has been satisfactory and well above our internal estimates.
The quarter gone by was full of challenges for the entire micro-finance sector as lockdown restrictions led to restricted collections and disbursements activities. Despite these challenges we have showcased improving trajectory in our asset quality and have delivered a sequential improvement of 50 basis points in our GNPA which stood at 2.4% as of June 2020. We have adequately provided for these. On-book Provision Coverage at 130% is the highest we had in a few years. Going forward we continue to remain focused on achieving steady growth without hampering our portfolio quality.
During the lockdown period when economic activities were majorly at halt, we have undertaken couple of initiatives to adopt newer technologies and digital solutions in all our functions for more efficient and effective working environment and thus providing higher customer satisfaction.
We successfully launched a new ‘Customer Service App’ to increase digital and financial awareness among customers and helped them getting connected with brand ‘SATIN’. We have also launched a new product called ‘Pragati Loans’ with main purpose of this product is to rebuild borrowers income generation activities impacted majorly due to COVID-19 and also help them reduce monthly cash outflow on their loans.
We are continuously engaging with our customers, employees, and field staffs and now with lockdown restrictions being lifted in major parts of the country and economic activities progressing towards normalcy, we are getting progressive responses both on collections and disbursements activities with each passing day. We expect coming quarters to be much better and robust both on financial and operational aspect.”
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