Sammaan Capital (SAMMAANCAP) Q2 24/25 earnings summary

Executive summary

• Pre-provisioning operating profit rose to INR 828 crores in Q2 FY25 and INR 1,525 crores in H1 FY25, up from INR 679 crores and INR 1,015 crores year-over-year.

• Adjusted PAT for H1 FY25 was INR 601 crores, stable versus last year, despite a one-time INR 4,000-4,050 crore provision.

• Consolidated net loss of ₹2,760.72 crore for Q2 FY25, driven by higher impairments and write-offs.

• Cash collections from the legacy book reached a record INR 5,053 crores in H1 FY25, exceeding targets.

• Net worth increased to INR 21,000 crores at the parent and INR 19,979 crores consolidated as of September 2024.

Financial highlights

• Retail disbursements are steady at INR 1,000 crores per month, with retail AUM and loan book showing strong growth.

• Legacy AUM reduced from INR 37,386 crores to INR 30,918 crores sequentially.

• Total income for Q2 FY25 was ₹2,425.17 crore, up from ₹2,236.27 crore in Q2 FY24.

• Finance costs for H1 FY25 were ₹25.48 Bn, down from ₹27.04 Bn year-over-year.

• Cost-to-income ratio at 25% for H1 FY25, improving to 23.4% in FY24.

Outlook and guidance

• Targeting 1 lakh crore growth AUM by FY27, with incremental ROE expected to reach 18% and net NPA to fall below 1.2%.

• Cost-to-income ratio targeted to drop below 20% by FY27.

• Projected cash collections of INR 7,650 crores in H2 FY25 and INR 5,700-5,800 crores per half-year in FY26.

• SFL business expects rapid growth in AUM, disbursals, and profitability, with ROA rising to 7% and ROE to 25.9% by FY29.

• Board has approved policy for adherence to RBI's Scale Based Regulatory framework for NBFC-UL.