Satin Creditcare Q1 net profit rises 49% to Rs 41 crore

Micro-financier Satin Creditcare on August 9 reported a jump of 49 per cent in its net profit to Rs 41 crore in the first quarter ended June. The company's net profit was Rs 28 crore in the corresponding quarter of 2018-19.

Its total income rose to Rs 353.16 crore, compared with Rs 327.71 crore in the year-ago period, the company said in a regulatory filing.

The net interest income grew 15.6 per cent to Rs 201 crore during the quarter, from Rs 174 crore a year ago.

Satin Creditcare said it raised Rs 1,428 crore incremental funds during the quarter and undrawn sanctions worth Rs 1,412 crore.

Also, there was equity infusion through conversion of warrants worth Rs 60 crore by promoter and OCCRPs (optionally convertible cumulative redeemable preference shares) worth Rs 45 crore by IndusInd Bank at Rs 335 per share, it said in a release.

H P Singh, chairman and managing director, Satin Creditcare, said the company delivered strong growth despite challenging environment faced by the NBFC (non-banking financial company) industry.

"We continued to deepen our presence in the underserved rural/semi-urban areas, across 22 states and Union territories. To achieve this, we have curated our business strategy on four core pillars; geographical expansion, portfolio diversification, asset quality and strategic partnership with financial institutions," Singh said.

He said the company has decided to diversify revenue stream by increased cross-sell of products within Satin's ecosystem.

"We believe there are growth opportunities available for microfinance players with strong balance sheet and non-urban focused business model," he added.