How has been the historical performance of Satin Creditcare?

Revenue and Profit Trends

Over the past seven years, Satin Creditcare's net sales have shown a consistent upward trend, rising from ₹1,442.61 crores in March 2019 to ₹2,594.69 crores in March 2025. This represents a near doubling of revenue, reflecting the company's expanding operations and market presence. Operating profit before depreciation and interest (PBDIT) has also increased substantially, peaking at over ₹1,500 crores in March 2024 before moderating to approximately ₹1,311 crores in March 2025.

However, the company's profitability has experienced notable fluctuations. Profit after tax (PAT) declined sharply in the fiscal year ending March 2021, registering a loss of nearly ₹14 crores, before rebounding strongly to ₹435.94 crores in March 2024. The latest fiscal year saw PAT moderate to ₹186.13 crores. Earnings per share (EPS) followed a similar pattern, with a low point in 2021 and a peak of nearly ₹40 in 2024, settling at around ₹17 in 2025. These swings highlight periods of operational challenges and recovery.

Cost Structure and Margins

The company's expenditure profile reveals rising employee costs, which increased from ₹305.48 crores in 2019 to ₹586.31 crores in 2025, reflecting workforce expansion. Other expenses have also grown significantly, reaching ₹703.95 crores in the latest fiscal year. Despite these rising costs, Satin Creditcare maintained a robust operating profit margin, though it declined from a high of 67.27% in 2024 to 50.31% in 2025. The PAT margin similarly contracted to 7.18% in 2025 from nearly 20% the previous year, indicating margin pressures amid higher expenses and interest costs.

Balance Sheet and Capitalisation

Shareholders' funds have grown steadily, rising from ₹1,486.16 crores in 2021 to ₹2,542.86 crores in 2025, supported by increasing reserves. The company's equity capital also expanded, reflecting equity raises over the years. Total liabilities have increased in line with business growth, reaching ₹11,542.59 crores in 2025, with short-term borrowings constituting the majority of debt at ₹8,791.44 crores. The net block of fixed assets has grown moderately, indicating ongoing investment in infrastructure.

Cash Flow Dynamics

Cash flow from operating activities has been negative in recent years, with a significant outflow of ₹563 crores in 2025, continuing a trend of cash utilisation for business expansion and working capital needs. Investing activities have consistently absorbed cash, while financing activities have provided substantial inflows, notably ₹913 crores in 2025, reflecting reliance on external funding to support growth. The company’s closing cash and cash equivalents rose to ₹729 crores in 2025, up from ₹424 crores the previous year, indicating improved liquidity management.

Summary of Historical Performance

In summary, Satin Creditcare's historical performance reflects a company in growth mode, with revenues nearly doubling over six years and shareholder equity increasing substantially. Profitability has been volatile, impacted by rising costs and interest expenses, but the company has demonstrated resilience with a return to positive earnings after a loss in 2021. The balance sheet shows increased leverage, primarily through short-term borrowings, to fund expansion, while cash flow patterns indicate ongoing investment and financing activity to support operations.

Investors analysing Satin Creditcare should consider both its growth potential and the challenges posed by margin fluctuations and cash flow management. The company's ability to sustain profitability and manage debt levels will be critical for its future financial health and market performance.

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