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Aided by higher volumes and lower operating expenses, Satin Creditcare Network Ltd (SCNL) on Monday reported a consolidated net profit of Rs 27.5 crore in the first quarter ended June 30, 2018. The microfinance company had reported a net loss of Rs 82.2 crore in the same quarter of the last fiscal.
On a consolidated basis, the company recorded a 42.8 per cent year-on-year growth in assets under management (AUM) at Rs 6,025.7 crore as at end June 2018.
Commenting on the company's performance, H P Singh, Chairman and Managing Director, said in a statement, "We are leaving behind the woes of demonetisation and are strengthening our business by geographical expansion and product diversification. Also, a strong book is building up in our business correspondence partnership with IndusInd, and we are confident of achieving our targeted growth numbers for the year”.
He said the company’s focus on technology has enabled cashless disbursement in 90 per cent of the branches and 57 per cent of total disbursements. “We are working towards enhancing our collection efficiency. The collection efficiency of new clients acquired since January 2017 is at 99.6 per cent, and with the increase in the first cycle customers, we see it aiding an increase in our overall collection efficiency,” Singh said.
Concentration of AUM has decreased to below 25 per cent on a consolidated basis and the company has decided that by 2020, no state should have a share of more than 20 per cent in the total AUM, he said.
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