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 operational resilience and strong asset quality despite sector headwinds.

• 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.

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

• 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 AUM grew 10% YoY to INR 12,128 crore; standalone gross loan portfolio up 10% to INR 10,778 crore.

• Consolidated revenue for nine months FY25 rose 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.

• Write-offs for the quarter were INR 1.69 billion.

• Basic and diluted EPS for the quarter were ₹11.23 (consolidated) and ₹10.76 (standalone); nine-month EPS was ₹32.58 (consolidated) and ₹31.51 (standalone).

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 normalization before accelerating expansion.