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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 150.00 | ACUITE BB+ | Stable | Downgraded | - |
| Total Outstanding | 150.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has downgraded the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) to 'ACUITE BB+’ (read as ACUITE double B plus) on the Rs.150.00 Cr. bank facilities of Sai Point Finance Corporation Limited (SPFC). The outlook has been revised from 'Negative' to 'Stable'. Rationale for rating The downgrade reflects persistent |
| About the company |
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Thane (Maharashtra)-based Sai Point Finance Corporation Limited was incorporated in 1995 as non-deposit taking NBFC. The company commenced operations in 2014 under the current management of Sai Point Group (SPG). The company is engaged in financing of two wheelers through a network of 47 branches across 5 regions of Maharashtra, namely Mumbai, Pune, Vidharbha, Nashik, Ratnagiri and Goa as on March 31, 2025. SPFC is promoted by Mr. Dilip Patil (Managing Director). SPG consists of Sai Point Automobiles Private Limited, Sai Point Cars Private Limited and Sai Point NEXA. Sai Point Automobiles Private Limited is engaged in Honda two wheeler dealership business. Sai Point Cars Private Limited and Sai Point NEXA are engaged in Maruti Suzuki four wheeler dealership business.
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
| Acuité has considered the standalone financial and business risk profile of SPFC to arrive at the rating. |
| Key Rating Drivers |
| Strength |
| Experienced promoter supported by the established presence of Sai Point Group in the two wheeler dealership segment
Sai Point Group forayed into the auto dealership industry in 2001 with Sai Point Automobiles Private Limited (SPAPL), which is engaged in Honda two wheeler dealership business. Later in 2010, the group commenced four wheeler dealerships of Maruti Suzuki and Nexa by setting up Sai Point Cars Private Limited and Sai Point Nexa, respectively. Subsequently, SPFC was started in 2014 as two wheeler financing to customers sourced through their Honda two wheeler dealership company. All the entities are overseen by Mr. Dilip Patil (Managing Director). The group enjoys two decades of experienced promoters and an operational track record of entities in the auto dealership segment, which in turn has supported the business growth of SPFC. SPFC operates in Maharashtra with a network of 47 branches as on March 31,2025. Around 35 percent of SPFC’s portfolio is attributed to Sai Point Group’s Honda two wheeler dealership business carried out under SPAPL, with the remaining 65 percent coming from financing for other dealers. SPFC mainly finances Honda two-wheelers, which account for ~60-65 percent of the portfolio financed, followed by 20 percent of Bajaj two-wheelers and 10-15 percent of TVS scooters and other brands. SPFC’s capitalization levels stood healthy at 37.64 percent as on March 31, 2025, as against 37.89 percent as of March 31, 2024. The promoters infused Rs. 5 crore in H1 FY2022. This ensures adequate room is available for the future growth of the company. Acuité believes that SPFC’s business profile will continue to benefit from the established presence of Sai Point Group in the two-wheeler dealership industry, backed by experienced promoters and healthy capitalization levels. |
| Weakness |
| Persistent Decline in Earnings and Margins
SPFC’s profitability remains under significant pressure, with Net Interest Income contracting to Rs.9.63 crore in FY25 from Rs.10.63 crore in FY24, despite stable interest income. The Net Interest Margin (NIM) declined to 5.53 % in FY25 from 6.08% in FY24, reflecting margin compression amid rising borrowing costs (16.34% in FY25 vs 15.07% in FY24). PAT also fell by 18% year-on-year to Rs.1.49 crore as on FY25, indicating limited ability to absorb operating expenses and provisions. This deterioration underscores structural The company continues to operate on a modest scale, with AUM declining to Rs.174.37 crore in FY25 from Rs.179.84 crore in FY24, and muted disbursement activity restricting growth prospects. Geographic concentration of the loan portfolio further heightens vulnerability to localized economic disruptions, limiting diversification benefits. Additionally, operating efficiency remains weak, with operating expense to earning assets at 4.86% as on FY25, constraining profitability improvement. These factors collectively weigh on the company’s ability to scale operations and maintain competitive positioning. |
| Rating Sensitivity |
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| Liquidity Position |
| Adequate |
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SPFC’s overall liquidity profile remains adequate as on March 31, 2025, with no cumulative negative mismatches in the ALM in near to medium term. The company has maintained cash and bank balances of Rs. 1.11 Cr. as on March 31, 2025. |
| Outlook - Stable |
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| Other Factors affecting Rating |
| None. |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
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| Status of non-cooperation with previous CRA (if applicable): |
| Not Applicable |
| Any other information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm |
| Note on complexity levels of the rated instrument |
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