Spandana Sphoorty Financial Limited · NSE:SPANDANA

Spandana Sphoorty Financial — Q3 FY24 Earnings Presentation

27 slides from Spandana Sphoorty Financial's earnings presentation, Jan 22, 2024

  1. Slide 1: Stock exchange cover letter for investor presentation

    Ref: SSFL/Stock Exchange/2023-24/146 Date: January 22, 2024 To To BSE Limited, National Stock Exchange of India Limited, Department of Corporate Services Listing Department P. J. Towers, 25th Floor, Exchange Plaza, C-1, Block G Dalal Street, Bandra Kurla Complex, Bandra (E) Mumbai – 400001 Mumbai –

  2. Slide 2: Q3 FY24 Investor Presentation

    Invested in Bharat! Spandana Sphoorty Financial Limited Q3 FY24 Investor Presentation Bhil Art

  3. Slide 3: Safe Harbor

    Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Spandana Sphoorty Financial Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f

  4. Slide 4: Our Vision 2028 – 28 by 28

    Our Vision 2028 – 28 by 28 ₹28,000 Cr AUM by FY2028 Spandana Analyst, Investor meet – Mumbai 11/12/2023 Particulars Q3FY24 FY28 Target AUM (₹ Cr) 10,404 ~28,000 Of which LAP & Nano loans 52 3,000 – 3,500 Borrowers (L) ~30 ~62 Employees 12,989 20,500 – 22,000 Top 3 states AUM (%) 42.2% <36% Gearing (

  5. Slide 5: 9M YoY Customer Acquisition up 112%, Income up 93%, PPOP up 128%

    9M YOY Customer Acquisition up 112%, Income up 93%, PPOP up 128% 9M PAT of ₹372 Cr – surpassed highest full year PAT ever (₹352 Cr in FY20) Particulars 9M FY24 9M FY23 YoY (%) Client Addition (L) 9.5 4.5 112% Disbursement (₹ Cr) 6,719 5,071 32% AUM (₹ Cr) 10,404 6,852 52% Income (₹ Cr) 1,824 944 93%

  6. Slide 6: YoY - AUM up 52%, customer acquisition up 56%, PAT up 79%, Income up 75%

    YOY - AUM up 52%, customer Acquisition up 56%, PAT up 79%, Income up 75% Acquired 9.5L borrowers during 9MFY24 Consolidating lender relationships Borrower Lending Client Addition Funds raised* count partners 3.4 L 29.6 L 58 ₹2,279 Cr YoY QoQ YoY QoQ YoY QoQ +56% -3% +32% 10% +8% -29% AUM growth mome

  7. Slide 7: Ratings update

    Ratings update Spandana Sphoorty Financial Ltd – Outlook changed to Positive by ICRA & CRISIL Rating / Outlook Rating / Outlook Rating Agency Rating Instrument Change (Current) (30-Sep-23) ICRA Bank Facilities / NCD’s / MLD’s A / Positive A / Stable Outlook change CRISIL Bank Facilities A / Positive

  8. Slide 8: 32% YoY growth in borrower base which is now ~30 Lacs

    YoY 32% YoY growth in borrower base which is now ~30 Lacs Momentum on increasing distribution sustained – 72 new branches added No. of borrowers (in L) Branch count 1,574* 1,800 29.6 1,502 1,600 27.0 1,303 375 24.1 1,227 323 1,400 22.4 22.6 64 140 1,200 1,000 800 1,115 1,163 1,163 1,179 1,199 600 40

  9. Slide 9: Strong momentum on new customer acquisition sustained

    Strong momentum on new customer acquisition sustained. 56% YoY growth in borrower addition; 9.49L new customers sourced in 9M of FY24 New customers acquired (in ‘000) 44% customer acquisition from 7 focus states QoQ YoY YoY -3% +56% +112% 949 1. Bihar 7 Focus 2. Rajasthan Other States 3. Uttar Prade

  10. Slide 10: AUM growth momentum continues

    AUM growth momentum continues ~52% YoY & 6% QoQ growth in AUM AUM (₹ Cr) - YoY Growth of 52% AUM (₹ Cr) – QoQ Growth of 6% 10,404 6% 10,404 52% 9,784 8,848 8,511 6,852 6,852 Q3FY23 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Reduction in AUM Concentration of top 5 states Disbursement (₹ Cr) QoQ YoY 1%

  11. Slide 11: Net Collection Efficiency at 97.2%, Gross Collection Efficiency at 99.9%

    Net Collection Efficiency at 97.2%, Gross Collection Efficiency at 99.9% Collection Efficiency (%) AUM & Current book 11,000 100.0% 102.1% 102.5% 101.5% 100.3% 99.9% 96.6% 97.1% 96.7% 10,404 95.0% 97.6% 98.1% 97.7% 97.2% 10,000 92.1% 9,784 94.5% 96.0% 90.0% 9,000 8,848 8,511 85.0% 8,000 80.0% 7,000

  12. Slide 12: Portfolio quality: 1-90 book at 2.49%, ~48% in 1-30 dpd

    Portfolio quality: 1-90 book at 2.49%, ~48% in 1-30 dpd Parivartan branches contribute 66% (~9,800 customers) of SMA flows 1 – 90 dpd 1 – 30 dpd 8.36% 14.40% 7.51% 4.03% 5.73% 2.86% 2.59% 1.20% 1.54% 1.36% 2.04% 2.49% 1.16% 0.58% 0.55% 0.85% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY22 FY23

  13. Slide 13: GNPA at 1.61%; NNPA at 0.48%

    GNPA at 1.61%; NNPA at 0.48% 18.65% 10.46% 7.37% 6.69% 5.31% 3.84% 3.24% 2.52% 2.07% 1.63% 1.40% 1.61% 0.64% 0.49% 0.42% 0.48% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 GNPA NNPA 12

  14. Slide 14: Portfolio risk sufficiently covered with PCR at 70.45%

    Portfolio risk sufficiently covered with PCR at 70.45% Q3 FY24 Q2 FY24 Provisioning & Loans ECL Loans ECL Coverage % of Loans % of Loans Outstanding Provision Coverage Outstanding Provision Coverage Outstanding Outstanding (₹ Cr) (₹ Cr) (₹ Cr) (₹ Cr) Stage 1 9,365 97.10% 97 1.04% 8,817 97.41% 85 0.9

  15. Slide 15: Liability relationships being strengthened

    Liability relationships being strengthened. Borrowings calibrated in line with disbursement plan; ~8% YoY growth in fund mobilization Incremental borrowing (in ₹ Cr) Cost of borrowing 12.7% 12.6% QoQ YoY 12.4% 12.5% 12.5% -29% +8% 12.3% 12.3% 12.3%12.2% 11.5% 3,191 2,279^ Q3 Q4 Q1 Q2 Q3 2,104 FY23 F

  16. Slide 16: Income and profitability continue to trend higher

    Income and profitability continue to trend higher YoY – Income up 75%, PAT up 79% Income* (₹ Cr) Net Income*^ (₹ Cr) QoQ YoY YoY QoQ YoY YoY 3% +75% +93% -1% +60% +81% 1824 1,147 640 657 944 412 407 635 375 254 Q2 Q3 Q3 9M 9M Q2 Q3 Q3 9M 9M FY24 FY24 FY23 FY23 FY24 FY24 FY24 FY23 FY23 FY24 PPOP* (₹

  17. Slide 17: Borrowing cost declines over Q2FY24

    Borrowing cost declines over Q2FY24 NIM at 13.3%, Yield 24.1% Yield (%) Cost of Borrowing (%) QoQ YoY YoY QoQ YoY YoY -38 bps +259 bps +476 bps -26 bps +74 bps +149 bps 24.5% 24.1% 24.2% 12.7% 12.5% 12.3% 21.5% 11.5% 19.4% 11.3% Q2 Q3 Q3 9M 9M Q2 Q3 Q3 9M 9M FY24 FY24 FY23 FY23 FY24 FY24 FY24 FY23 F

  18. Slide 18: ROA at 5.5%, Cost to Income at 42.9%, ROE at 14.7%

    ROA at 5.5%, Cost to Income at 42.9%, ROE at 14.7% Cost to income^ (%) Opex to AUM (%) QoQ YoY YoY QoQ YoY YoY +113 bps -175 bps -10.09% -4 bps -63 bps -63 bps 52.6% 7.2% 7.2% 42.9% 44.7% 41.8% 6.6% 6.6% 6.6% 42.5% Q2 Q3 Q3 9M 9M Q2 Q3 Q3 9M 9M FY24 FY24 FY23 FY23 FY24 FY24 FY24 FY23 FY23 FY24 ROA*

  19. Slide 19: Net-worth increases to ₹3,497 Cr; CRAR at 35.0%

    Net-worth increases to ₹3,497 Cr; CRAR at 35.0% Net-worth (₹ Cr) CRAR (%) 3,360 3,497 3,228 39.1% 3,099 37.6% 2,961 36.3% 36.6% 35.0% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY23 FY23 FY24 FY24 FY24 FY23 FY23 FY24 FY24 FY24 Gearing (x) 2.31 2.28 1.96 1.98 1.73 Q3 Q4 Q1 Q2 Q3 FY23 FY23 FY24 FY24 FY24 18

  20. Slide 20: Consolidated Income Statement

    Consolidated Income Statement Particulars (₹ Cr) Q3 FY24 Q2 FY24 Q3 FY23 QoQ YoY 9MFY24 9MFY23 YoY Revenue from Operations Interest income 559 540 338 4% 65% 1,588 858 85% Net gain on fair value changes 56 60 8 (7)% 562% 129 19 583% Other Income 11 11 8 0% 33% 31 26 21% Total income from operations

  21. Slide 21: Consolidated Balance Sheet

    Consolidated Balance Sheet ASSETS (₹ Cr) Dec 31, 2023 Mar 31, 2023 LIABILITIES & EQUITY (₹ Cr) Dec 31, 2023 Mar 31, 2023 Financial Liabilities Financial Assets Debt Securities 3,541 3,369 Cash and bank balances 1,669 1,005 Borrowings (Other than Debt Securities) 4,402 2,685 Loan Portfolio 9,424 7,76

  22. Slide 22: Annexure

    Annexure 21

  23. Slide 23: Positive ALM across maturity buckets

    Positive ALM across maturity buckets Positive ALM* (₹ Cr) Maturity profile* (in months) 3,414 3,166 3,113 12.1 2,109 2,317 11.2 1,928 1,839 1,664 10.0 584 573 670 9.6 408 396 80 162 42 upto 1m 1m to 2m 2m to 3m 3m to 6m 6m to 12m 1Y to 3Y 3Y to 5Y Over 5Y Dec-23 Sep-23 Assets Liabilites Avg. residua

  24. Slide 24: Well diversified presence

    Well diversified presence AUM concentration* - ~41% from top 3 States District level concentration* % of AUM Largest 1.8% State Q3FY24 Q3FY23 Odisha 15% 15% Top 5 7.8% Madhya Pradesh 15% 17% Karnataka 11% 11% Top 10 13.2% Andhra Pradesh 11% 11% Maharashtra 10% 10% Top 20 22.2% Bihar 10% 8% Jharkhand

  25. Slide 25: Metrics over the years

    Metrics over the years AUM (₹ Cr) Disbursement (₹ Cr) 10,404 8,004 8,125 8,511 6,426 6,719 8,157 6,829 6,581 4,969 4,372 3,373 FY19 FY20 FY21 FY22 FY23 9M FY19 FY20 FY21 FY22 FY23 9M FY24 FY24 Net Income* (₹ Cr) PAT (₹ Cr) 352 372 1,113 1,082 1,147 312 940 1,019 691 145 70 12 FY19 FY20 FY21 FY22 FY2

  26. Slide 26: Rapid branch expansion over past 9 months

    Rapid branch expansion over past 9 months Borrowers (in L) Employees Borrowers / Branch & LO 12,989 3000 2,658 2,541 850 29.6 2,324 750 24.6 25.7 24.5 10,016 2500 2,097 23.5 22.6^ 1,840 1,880 650 8,224 8,644 8,763 2000 697 550 6,655 1500 590 450 350 432 382 1000 343 353 250 150 500 50 0 -50 FY19 FY2

  27. Slide 27: Thank you!

    Thank you! Investor Relations Strategic Growth Advisors Pvt. Ltd Abhishek Shah Spandana Sphoorty Financial Limited +91 99306 51660

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