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.

• 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.

• Financial statements prepared in accordance with Indian Accounting Standards and SEBI regulations; reviewed and approved by Board and Audit Committee with no material misstatements.

Financial highlights

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

• Nine months FY25 consolidated revenue 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 INR 11.23 (consolidated) and INR 10.76 (standalone); nine-month EPS was INR 32.58 (consolidated) and INR 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 expects credit costs to normalize by Q2 FY26, targeting sub-3% credit cost in the medium term.

• Growth focus remains cautious, prioritizing asset quality over aggressive expansion; expected AUM growth rate post-normalization is 10%-15%.

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

• The company continues to focus on financing activities as its core business, with all operations in the domestic market.