Satin Creditcare Network Reports 19% Profit Jump in Q2, Revenue Up 20%

Satin Creditcare Network Ltd has reported a 19% year-on-year increase in its consolidated net profit for the September quarter, reaching ₹53.16 crore. The company's total income also saw a significant jump of 20%, amounting to ₹788 crore. This marks the microfinance lender's 17th consecutive profitable quarter, demonstrating consistent performance.

Satin Creditcare maintained strong asset quality, with its Portfolio-at-Risk (PAR 90) at 3.5% as of September 30. The company boasts a robust Capital Adequacy Ratio of 26.3% and a healthy liquidity buffer of approximately ₹2,300 crore. Chairman and Managing Director H.P. Singh highlighted strong credit demand and prudent asset management for the revenue growth, noting a 15% rise in Net Interest Income to ₹449 crore and a 90 basis points improvement in Net Interest Margin to 14%.

The company is expanding its footprint, having opened 162 new branches in the first half of the fiscal year, now operating across 31 states and union territories. Subsidiaries Satin Housing Finance and Satin Finserv showed strong Assets Under Management (AUM) growth. Newer entities, Satin Technologies and Satin Growth Alternatives, are focusing on digital lending, MSME financing, women-led enterprises, and ESG-linked ventures. Additionally, Satin introduced Natural Calamity Insurance and strengthened credit risk management.

Impact: The consistent profitability, strong asset quality, expanding network, and strategic diversification into digital and sustainable finance are positive indicators for investor confidence. These factors are likely to support the company's stock performance and reinforce its market position. Impact Rating: 6/10

Difficult Terms: Consolidated Net Profit: The combined profit of a parent company and its subsidiaries after all expenses are deducted. Portfolio-at-Risk (PAR 90): A metric measuring the percentage of loans where borrowers are overdue by 90 days or more, indicating asset quality. Capital Adequacy Ratio: A regulatory measure of a financial institution's capital relative to its risk-weighted assets, showing its financial stability. Liquidity Buffer: Easily accessible cash or assets a company holds to meet short-term financial obligations. Net Interest Income: The profit a financial institution earns from lending and borrowing activities, after accounting for interest expenses. Net Interest Margin: A profitability ratio that measures the difference between interest income and interest expense relative to earning assets, indicating lending efficiency. Basis Points: A unit of measure used for percentage changes in financial instruments, where 1 basis point equals 0.01%. Assets Under Management (AUM): The total market value of investments managed by a financial institution on behalf of its clients. ESG-linked Enterprises: Companies committed to strong Environmental, Social, and Governance practices in their operations.