Sammaan Capital (SAMMAANCAP) Q2 24/25 earnings summary

Executive summary

• Pre-provisioning operating profit rose to INR 828 crores in Q2 FY25 and INR 1,525 crores for H1 FY25, up from INR 679 crores and INR 1,015 crores year-over-year.

• Adjusted PAT for H1 FY25 was INR 601 crores, stable versus last year, despite a one-time fair market value provision of INR 4,000–4,050 crores.

• Consolidated net loss of ₹2,760.72 crore for Q2 FY25, compared to a profit of ₹326.76 crore in Q1 FY25, due to higher impairments.

• Cash collections from the legacy book reached a record INR 5,053 crores in H1 FY25, exceeding targets.

• Net worth increased to INR 21,000 crores at the parent and INR 19,979 crores consolidated as of September 2024.

Financial highlights

• Retail disbursements are steady at INR 1,000 crores per month, with retail AUM and loan book showing strong growth.

• Total income for Q2 FY25 was ₹2,425.17 crore, up from ₹2,236.27 crore in Q2 FY24; H1FY25 total income reached ₹46.61 Bn.

• Finance costs for H1FY25 were ₹25.48 Bn, down from ₹27.04 Bn year-over-year.

• Impairment on financial instruments surged to ₹47.73 Bn in H1FY25 due to one-time provisions.

• Legacy AUM reduced from INR 37,386 crores to INR 30,918 crores in the quarter.

Outlook and guidance

• Targeting a growth AUM of INR 1 lakh crore by FY27, with incremental retail ROA and ROE targets of 3.2% and 18%.

• Projected cash collections of INR 7,650 crores in H2 FY25 and INR 5,700–5,800 crores per half-year in FY26.

• Expecting write-backs of INR 1,650 crores in H2 FY25 and INR 1,670 crores in FY26.

• Consolidated gross credit costs projected at 80–100 bps p.a. going forward, down from 145 bps in FY24.

• SFL business expects rapid growth in AUM, disbursals, and profitability, with ROA rising to 7% and ROE to 25.9% by FY29.