Sammaan Capital Q1 profit falls 27% as revenue drops; first full quarter under IHC

Bajaj Finserv Q1: Net profit rises 18% to ₹6,297 crore; board approves re-insurance business plans


Sammaan Capital reported a 27.2% year-on-year decline in consolidated net profit for the quarter ended June 30, as the nonbank lender undergoes a broader transformation under its new controlling shareholder, Abu Dhabi-based International Holding Company.

Consolidated net profit fell to ₹243 crore in the first quarter of FY27 from ₹334 crore a year earlier, according to an exchange filing.

Revenue declined 31.6% to ₹1,642 crore from ₹2,400 crore in the year-earlier quarter.

The June quarter was Sammaan Capital’s first full quarter as part of the IHC Group following the completion of IHC’s strategic investment in the company. A subsequent open offer was completed in May.

The transaction involves a total committed investment of ₹8,850 crore and resulted in IHC becoming Sammaan Capital’s promoter and controlling shareholder.

Sammaan Capital overhauls loan book

The change in ownership comes as Sammaan Capital reshapes its balance sheet and business model.

The company’s board on March 30 approved a change in strategy for a pool of non-core exposures worth ₹14,953 crore.

Rather than holding those assets solely to collect contractual cash flows until maturity, Sammaan Capital plans to actively resolve them through sales to asset reconstruction companies, structured settlements, negotiated exits and other recovery mechanisms.

₹1,850 crore additional credit-loss provision

Sammaan Capital has also reassessed provisions set aside against potential credit losses under the Ind AS 109 impairment framework.

Following an independent macroeconomic assessment, the company recognised an additional expected credit loss management overlay of ₹1,850 crore over and above provisions generated by its models.

The additional provision was approved by the board on May 15.

IHC takes control

Sammaan Capital became part of the IHC Group after Avenir Investment RSC Ltd., an entity owned and controlled by IHC, completed its strategic investment in the company.

The investment, structured through equity shares and warrants, has a total transaction value of ₹8,850 crore. Sammaan Capital has described it as one of the largest foreign direct investments in India’s nonbank financial sector.

Managing Director and Chief Executive Gagan Banga said the company plans to accelerate growth while maintaining defined limits on risk.

“We believe Sammaan Capital is well positioned to move decisively onto its next phase of growth,” Banga said.

The company’s priorities include lowering its cost of funds, tapping IHC’s capabilities, expanding its technology-led distribution platform and maintaining disciplined risk management, he added.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *