Satin Creditcare Q2 Results: Profit slumps 60% to Rs 42 crore

Stress in the microfinance sector has pulled the second quarter standalone net profit for Satin Creditcare Network down 60% year-on-year while the lender revising its growth outlook downwards to prevent further deterioration of asset quality.

Satin’s consolidated net profit was at Rs 42 crore in the September quarter as compared with Rs 103 crore in the year-ago period.

Operating profit for the quarter however was 16.5% higher at Rs 191 crore.

“Looking at the current uncertain time, our approach prioritizes quality over quantity, ensuring a sustainable trajectory. Mindful of the existing industry landscape and the challenges that have emerged in the recent months, we have revised our guidance for FY25 to reflect a more measured outlook,” chairman HP Singh said.

The NBFC-MFI revised its annual asset management growth projection to 8-10% from the earlier projection of 25%. It raised the credit cost to 4.5-5% from 2.7%.

The credit cost was recorded at 3.9% of the total portfolio for the first half.The lender made a provision of Rs 89 crore for the period against Rs 26 crore earlier in line with the rise in gross non-performing assets ratio to 3.5% at the end of September from 2.4% a year back.The collection efficiency in the first half of the fiscal was 96.4%. The lender has written off loans worth Rs 54 crore in the quarter.