Satin Creditcare jumps 10% as profit tripled in Q4

NEW DELHI: Shares of Satin Creditcare Network hit the upper circuit limit in early trade on Tuesday after the company almost tripled net profit for the March quarter of 2021. The microfinance institution reported Rs 38 crore profit for the quarter over Rs 13 crore reported for the year-ago period.

The stock surged 10 per cent to Rs 98.10 on Tuesday, but gave up some gains to trade at Rs 96.40 at 10.10 am (IST). BSE Sensex was traded 250 points, or 0.47 per cent, higher at 52,800 at the same time. Satin Creditcare had settled at Rs 89.20 on Monday.

Disbursement in Q4FY21 stood at Rs 2,376 crore against Rs 2,743 crore in the year-ago period. MFI disbursement stood at Rs 2,261 crore while collections jumped to 105 per cent in the March quarter from 98 per cent in the December quarter .

Shares of the microfinancer have underperformed in the last one year, delivering only 12 per cent return, while BSE Sensex has gained 59 per cent. However, it has soared 15 per cent in so far this year.

For the full financial year, the company reported a loss of Rs 14 crore against a Rs 155 crore profit after tax in FY20. For FY21, the microlender's gross NPA stood at 8.4 per cent and net NPA at 3.3 per cent. It has made a cumulative provision of Rs 289 crore. In FY21, disbursements stood at Rs 4,982 crore against to Rs 8,976 crore in FY20. The decline in disbursements was due to Covid disruption in H1FY21, the lender said.