Satin Creditcare Network Q1 Results: Co back in black with Rs 88 crore net profit
Satin Creditcare Network on Friday reported a 43% rise in standalone net profit for the quarter ending June 30 as compared with Rs 60 crore in the year ago period. Satin said it's the company's highest-ever first quarter profit in the past five years. Its net interest margin stood at 12.64% «The performance was better than our expectation,» Satin chairman HP Singh told ET.
«After the pandemic, we have now hit the cycle of growth,» Singh expects the net interest margin to improve by another 50 basis points in the next one or two quarters and then stabilise around 13%. Satin's standalone portfolio grew 31% year-on-year to Rs 8367 crore, backed by the highest ever quarterly loan disbursement of Rs 1980 crore. Its asset quality improved with on-book gross non-performing assets ratio falling to 2.49% at the end of June against 4.31% a year back.
«We have sufficient on-book provisions amounting to Rs 103 crore, which is 1.6% of the on-book portfolio,» the company said. It has successfully completed the preferential allotment of Rs 225 crore via issue of equity shares and fully convertible warrants in July 2023, taking the capital adequacy ratio to 25%. Post allotment, promoter shareholding rose a bit to 40%.
During the quarter, it also raised debt to the tune of Rs 2,148 crore, which was 66% higher than what it was in the same period last year. On a consolidated basis, net profit stood at Rs 88 crore against a loss of Rs 210 crore in the year ago quarter. The consolidated profit includes the earnings from Satin Housing Finance and Satin Finserv, which lends to MSME units and works as business correspondent of the microfinance company.
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