Shares of this NBFC company jumped around 2 percent in Wednesday’s trading session after ICRA upgraded its credit rating for the long-term bank facilitates. The shares have delivered 50 percent returns to its shareholders on a YTD basis.
With a market capitalisation of 2,702 crores, the shares of Satin Creditcare Network Ltd started Wednesday’s trading session positively at Rs. 245.25 compared to its previous close of Rs. 242.10. The shares hit a high of Rs. 247.95, gaining around 2 percent and currently trading at Rs. 244.80 apiece.
Such a positive movement was observed after the company received an upgraded credit rating from A-(Stable) to A (Stable) from ICRA for its long-term bank facilities, NCDs, and sub-debt. The company attributed the enhancement to performance and capitalisation, driven by improvement in recent quarters and a capital raise made by the company via QIP worth Rs. 250 crores.
HP Singh, CMD of Satin Creditcare Network Limited, stated, “This reassures us of the growing scale and diversity of our business, the quality of our cash flows and strong balance sheet. This upgrade will contribute to a reduced cost of funds for SCNL, aligning with the company’s commitment to serve its borrowers and further the cause of financial inclusion in rural hinterlands. Simultaneously, it is poised to elevate confidence levels among all our stakeholders.”
Coming onto the company’s financial statement, the revenue increased by 16 percent from Rs. 462 crores in the June quarter to Rs. 538 crores during the September quarter. In addition, the net profits zoomed by 22 percent from Rs. 88 crores to Rs. 107 crores during the same timeframe.
As of September 2023, the company has 32.1 lakhs of active customer base with 10,100 AUM and 1,335 branches across India. Moreover, the company maintained a Capital to Risk-weighted Assets Ratio (CRAR) of 25.7 percent while as per the guidelines issued by RBI, an NBFC needs to maintain a minimum CRAR of at least 10 percent.
Headquartered in New Delhi, Satin Creditcare Network was incorporated in 1990. It is a non-banking finance company (NBFC), licensed by the Reserve Bank of India. They offer financial requirements for excluded households at the bottom of the pyramid. Satin Creditcare Network Limited is a micro-finance institution (MFI) in the country with a presence in 23 states and more than 82,000 villages.
Written By Vaibhav Patil
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