BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Centrum Broking Report
Satin Creditcare Network Ltd. results were a miss to estimates.
Asset under management growth was slightly higher at 11% YoY though net interest margin was lower driven by higher funding cost as collections were weak.
Direct assignment (DA) income was much lower due to the lockdown which was off-set by lower opex.
Despite disbursements being weak for the quarter, July and August saw better performance with disbursements improving to Rs 1.5 to 2 billion and collection efficiency (CE) improving to 85% (versus 62% in June).
Overall moratorium (defined by customers not paying a single equated monthly installment) has reduced to approximately 13% in and 11% in volume and additional Covid-19 provisions are Rs 90 billion.
Capital Adequacy Ratio /Common equity tier-1 is healthy at 31.1%/23.7%.
We see a re-bound in FY22E with return on asset/return on equity scaling up to 2.2%/13.3%.
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