Shares of Satin Creditcare Network surged 20 per cent in Tuesday’s trade after the company reported a 58.55 per cent year-on-year (YoY) rise in net profit at Rs 943.99 crore for the March quarter compared with Rs 595.40 crore in the same quarter last year. Sales for the quarter grew 20.08 per cent to Rs 3,969.09 crore compared with Rs 3,305.38 crore in the corresponding quarter last year.

Interest cost remained roughly the same on YoY basis but depreciation more than doubled. Taxes rose 28 per cent YoY. PBIDT margin for the quarter came in at 70.34 per cent, down 46 basis points over 70.67 per cent in the year-ago quarter.

Following the development, the scrip rose 20 per cent to hit a high of Rs 172.05 on BSE. Later, the scrip was trading at Rs 165.15, up 15.17 per cent. The stock hit a 52-week high of Rs 174.90 on December 5, 2022. Against a two-week average of 4,569 shares on BSE, a total of 48,000 shares changed hands on the counter by 9.45 am today. 

Satin Creditcare Network Limited launched its operations as a provider of individual and small business loans and savings services to urban lenders in 1990, going on to be registered as an NBFC with the RBI in 1998 and converting into an NBFC-MFI in November 2013.

The company completed its IPO in the fiscal year of 1997 and was duly listed on the Delhi Stock Exchange (DSE), Ludhiana Stock Exchange (LSE) and the Jaipur Stock Exchange (JSE). Following the subsequent de-recognition of these exchanges by Sebi, Satin Creditcare listed its shares on the Calcutta Stock Exchange (CSE) on May 19, 2015, on the NSE on August 26 and the BSE on October 20 in the same year.

In 2017, Satin Creditcare incorporated Satin Housing Finance Limited, a wholly owned subsidiary with the aim of providing financing in the affordable housing segment and leveraging its rural outreach. This foray into the MSME and housing finance segments was inevitable, keeping in line with the group company’s strategy of product diversification and movement from unsecured to secured lending.

Also read: Maruti Suzuki, Tata Motors, Hero MotoCorp, TVS Motor, other auto shares in limelight post April sales data

Also read: Tata Steel Q4 results preview: 90% plunge in profit likely for Tata group firm as Europe drags