SATIN CREDITCARE NET. 2023-24 Annual Report Analysis

Mon, 22 Jul

SATIN CREDITCARE NET. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

SATIN CREDITCARE NET. Income Statement Analysis

• Interest income during the year rose 44.4% on a year-on-year (YoY) basis.
• Interest expenses were up by 46.1% YoY during the same period.
• Operating expenses declined by 32.5% YoY during the year.
• The company's net interest income (NII) increased by 43.3% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 14.9% in FY24 as against 14.6% in FY23.
• Other income declined by 91.4% YoY during the year.
• Net profit for the year increased by 8957.5% YoY.
• Net profit margins during the year increased to 19.5% in FY24 from 0.3% in FY23.

SATIN CREDITCARE NET. Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	15,492	22,374	44.4%
Other Income	Rs m	1,998	172	-91.4%
Interest Expense	Rs m	6,167	9,010	46.1%
Net Interest Income	Rs m	9,324	13,364	43.3%
Operating Expense	Rs m	11,086	7,481	-32.5%
Pre-provision Operating Profit	Rs m	236	6,055	2462.1%
Provisions & Contingencies	Rs m	0	235	0.0%
Profit before tax	Rs m	52	5,829	11021.7%
Tax	Rs m	4	1,470	34234.1%
Profit after tax	Rs m	48	4,359	8957.5%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	14.6	14.9
Net profit margin	%	0.3	19.5

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SATIN CREDITCARE NET. Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 89.1 bn as compared to Rs 63.3 bn during FY23, a rise of 40.8%.
• Cost of deposits for SATIN CREDITCARE NET. rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments fell to Rs 653 m during the year from Rs 778 m in FY23.
• Borrowing stood at Rs 8.5 bn, a fall of 27.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 104.8 bn as against Rs 77.6 bn during FY23, thereby witnessing a rise of 35.0%.

SATIN CREDITCARE NET. Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,989	24,008	50.2%
Advances	Rs m	63,289	89,081	40.8%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	778	653	-16.0%
Borrowings	Rs m	11,597	8,472	-27.0%
Total Assets	Rs m	77,610	104,809	35.0%

Current Valuations for SATIN CREDITCARE NET.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.6, an improvement from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 213.7, stands at 5.2 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.0 times, while the price to income ratio stands at 1.0 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	182.8	203.4
Earnings per share (Unadj.)	Rs	0.6	39.6
Diluted earnings per share	Rs	0.4	39.5
Avg P/E ratio	Rs	228.8	5.2
Avg P/ABV ratio	Rs	1.3	1.0
Avg Market Cap	Rs	11,012	22,583
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for SATIN CREDITCARE NET.

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 8,908,124.4x during FY24, from 6,328,856.7x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.35x during FY24, from 0.73x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): SATIN CREDITCARE NET.'s capital adequacy ratio (CAR) was at 27.7% as on 31 March 2024 as compared to 26.6% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 18.2% during FY24, from 0.3% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 4.16% during FY24, from 0.06% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 16.62% during FY24, from 8.37% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. SATIN CREDITCARE NET.'s gross NPA ratio stood at 2.5% as of 31 March 2024 compared to 3.3% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of SATIN CREDITCARE NET. was 1.0% in financial year 2024. This compared with 1.5% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	6,328,856.7	8,908,124.4
Debt to Equity Ratio	x	0.7	0.4
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	26.6	27.7
Return on Equity	%	0.3	18.2
Return on Assets	%	0.1	4.2
Return on Capital Employed	%	8.4	16.6
% of Gross NPAs	%	3.3	2.5
% of Net NPAs	%	1.5	1.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how SATIN CREDITCARE NET. has performed over the last 5 years, please visit here.

SATIN CREDITCARE NET. Share Price Performance

Over the last one year, SATIN CREDITCARE NET. share price has moved up from Rs 188.0 to Rs 213.7, registering a gain of Rs 25.7 or around 13.7%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, you can check out historical annual results for SATIN CREDITCARE NET. here and quarterly results for SATIN CREDITCARE NET. here)