Stain Creditcare Q2FY22 Results: Net profit down 31% at Rs 11 cr in Sept quarter

Micro lender Satin Creditcare Network (SCNL) on Friday reported an over 31 per cent decline in its net profit at Rs 11 crore in the second quarter ended September 2021.

The company had posted a net profit of Rs 16 crore in the corresponding quarter of the previous fiscal year. In the preceding quarter ended June 2021, the company had posted net loss of Rs 81 crore.

SCNL said disbursements have started picking up, growing by 83 per cent from a year ago, and 366 per cent from the June quarter due to waning pandemic effect as well as sustained and widespread vaccination drive.

"Disbursement activities are gradually inching towards the pre-covid levels and we expect this momentum to continue in the coming quarters. Collections on ground witnessed significant recovery since July," it said in a release.

Net interest income in July-September period of 2021-22 stood at Rs 171 crore, lower than Rs 184 crore in corresponding 2020-21 period.

Assets under management (AUM) too were down at Rs 7,381 crore from Rs 7,667 crore.

"Our disbursements for Q2FY22 stood at Rs 1,315 crore as compared to Rs 282 crore in Q1FY22 and Rs 717 crore Q2FY21. H1FY22 disbursements stood at Rs 1,597 crore. Gradual pickup in disbursement activities has resulted in our AUM at Rs 7,381 crore," HP Singh, Chairman & Managing Director of Satin Creditcare Network, said.

He said the company aims to maintain a sturdy balance sheet with a comfortable liquidity position, with the current balance sheet liquidity at around Rs 1,400 crore.

Total borrowings stood at Rs 5,920 crore by end of September 2021, of which 59 per cent is from the banks. Debt-to-equity ratio stood at 4.2x.

It said the collection efficiency witnessed some dip on account of the second wave of Covid-19 pandemic in Q1FY22. However, collections on ground witnessed significant recovery since July.

On the collection front, the cumulative collection efficiency for the quarter stood at 88 per cent. Excluding Assam, it was at 90 per cent.

"For the September quarter collection efficiency in top 4 states stood at 93 per cent, which is also showing signs of improvement in the month of October 2021 at 102 per cent."

On asset side, company's on-book gross non-performing assets stood at 8.71 per cent by end of Q2FY22.

"We have made adequate on-book provisioning of 8.67 per cent on account of Covid-19 pandemic," SCNL said.

Stock of Satin Creditcare closed at Rs 75.60 apiece on BSE, down 0.13 per cent from the previous close.