Spandana Sphoorty Financial Limited · NSE:SPANDANA
Spandana Sphoorty Financial — Q2 FY24 Earnings Presentation
24 slides from Spandana Sphoorty Financial's earnings presentation, Oct 30, 2023
Slide 1: Stock exchange filing cover letter
Ref: SSFL/Stock Exchange/2023-24/111 Date: October 30, 2023 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 –
Slide 2: Q2 FY24 Investor Presentation
Celebrating Bharat! Spandana Sphoorty Financial Limited Madhubani Art Q2 FY24 Investor Presentation
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
Slide 4: YoY - AUM up 69%, customer acquisition up 183%, PAT up 127%, Income up 106%
YOY - AUM up 69%, customer Acquisition up 183%, PAT up 127%, Income up 106% Delivering customer acquisition led growth Deepening lender relationships Borrower Lending Client Addition Funds raised count partners 3.5 L 27 L 54 ₹3,191 Cr YoY QoQ YoY QoQ YoY QoQ +183% 34% +24% 12% +195% 107% Strong grow
Slide 5: 24% YoY growth in borrower base
24% YoY growth in borrower base Momentum on increasing distribution sustained – 199 new branches added No. of borrowers (in L) Branch count 27.0 1,502* 24.1 21.7 22.4 22.6 1,303 1,227 323 140 64 1,115 1,115 1,163 1,163 1,179 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Month
Slide 6: Focus on new customer acquisition sustained
Focus on new customer acquisition sustained 183% YoY growth in borrower addition; ~31% new borrowers from 7 focus states New customers acquired (in ‘000) 31% customer acquisition from 7 focus states QoQ YoY 34% +183% 350 1. Bihar 2. Rajasthan 3. Uttar Pradesh 4. West Bengal 260 5. Haryana 7 Focus 6.
Slide 7: AUM growth momentum continues
AUM growth momentum continues ~69% YoY growth in AUM; 81% YoY growth in Disbursement AUM (₹ Cr) - YoY Growth of 69% AUM (₹ Cr) – QoQ Growth of 11% 9,784 11% 9,784 8,511 8,848 69% 43.6% Share of top 3 6,852 states 5,782 5,782 Q2FY23 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Disbursement (₹ Cr) QoQ Yo
Slide 8: Net Collection Efficiency at 97.7%, Current book at 96.7%
Net Collection Efficiency at 97.7%, Current book at 96.7% Collection Efficiency (%) AUM (₹ Cr) & Current book (%) 101.3% 102.1% 102.5% 101.5% 100.3% 10,000 97.1% 9,784 100.0% 96.6% 9,500 97.6% 98.1% 97.7% 92.1% 96.7% 95.0% 93.3% 94.5% 9,000 8,848 8,511 90.0% 8,500 86.9% 8,000 85.0% 7,500 80.0% 7,000
Slide 9: Portfolio quality: 1-90 book at 2.04%
Portfolio quality: 1-90 book at 2.04% 1 – 90 dpd 1 – 30 dpd 8.36% 14.40% 7.51% 4.03% 5.73% 2.86% 2.59% 2.04% 1.16% 0.85% 1.54% 1.36% 0.58% 0.55% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY22 FY23 FY23 FY23 FY23 FY24 FY24 31 – 60 dpd 61 – 90 dpd 3.41% 2.57% 1.93% 1
Slide 10: GNPA reduces to 1.40%; NNPA at 0.42%
GNPA reduces to 1.40%; NNPA at 0.42% 18.65% 10.46% 7.37% 6.69% 5.31% 3.84% 3.24% 2.52% 2.07% 1.63% 1.40% 0.64% 0.49% 0.42% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GNPA NNPA 9
Slide 11: Portfolio risk sufficiently covered with PCR at 70.26%
Portfolio risk sufficiently covered with PCR at 70.26% Q2 FY24 Q1 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 8,817 97.41% 85 0.96% 8,191 97.56% 85 1.0
Slide 12: Liability relationships being strengthened
Liability relationships being strengthened ~195% YoY growth in fund mobilization Incremental borrowing (in ₹ Cr) Cost of borrowing 12.6% 12.7% 12.6% 12.5% 12.5% QoQ YoY 12.4% 12.3% 12.3% 107% +195% 11.5% 11.2% 3,191 Q2 Q3 Q4 Q1 Q2 FY23 FY23 FY23 FY24 FY24 Cost of Borrowing Marginal Cost of Borrowing
Slide 13: Income and profitability continue to trend higher
Income and profitability continue to trend higher YoY – Net Income up 89%, PAT up 127% Total Income* (₹ Cr) Net Income*^ (₹ Cr) QoQ YoY QoQ YoY 21% +106% 26% +89% 412 640 328 527 219 310 Q1 Q2 Q2 Q1 Q2 Q2 FY24 FY24 FY23 FY24 FY24 FY23 PPOP* (₹ Cr) PAT (₹ Cr) QoQ YoY QoQ YoY +36% +134% +5% +127% 258
Slide 14: Yields improve further while NIM remains stable
Yields improve further while NIM remains stable NIM stable at 14.1% and yield improves to 24.5% Yield (%) Cost of Borrowing (%) QoQ YoY QoQ YoY +41 bps +496 bps +1 bps +131 bps 24.0% 24.5% 12.5% 12.5% 11.2% 19.5% Q1 Q2 Q2 Q1 Q2 Q2 FY24 FY24 FY23 FY24 FY24 FY23 NIM (%) Gearing (x) QoQ YoY -11 bps +11
Slide 15: ROA at 5.7%, Cost to Income at 41.8%, ROE at 15.1%
ROA at 5.7%, Cost to Income at 41.8%, ROE at 15.1% Cost to income* (%) Opex to AUM (%) QoQ YoY QoQ YoY -89 bps -791 bps +19 bps -136 bps 49.7% 8.0% 42.7% 41.8% 6.4% 6.6% Q1 Q2 Q2 Q1 Q2 Q2 FY24 FY24 FY23 FY24 FY24 FY23 ROA (%) ROE (%) QoQ YoY QoQ YoY -10 bps +737 bps -19 bps +187 bps 15.2% 15.1% 5.9%
Slide 16: Net-worth increases to ₹3,360 Cr; CRAR at 36.6%
Net-worth increases to ₹3,360 Cr; CRAR at 36.6% Net-worth (₹ Cr) CRAR (%) 45.3% 3,360 3,228 36.6% 39.1% 3,099 36.3% 37.6% 2,961 2,867 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2 Q3 Q4 Q1 Q2 FY23 FY23 FY23 FY24 FY24 15
Slide 17: Consolidated Income Statement
Consolidated Income Statement Particulars (₹ Cr) Q2 FY24 Q1 FY24 Q2 FY23 QoQ YoY H1FY24 H1FY23 YoY Revenue from Operations Interest income 540 490 276 10% 95% 1,029 520 98% Net gain on fair value changes 60 13 6 370% 845% 73 10 601% Other Income 11 9 15 15% (29)% 20 17 16% Total income from operatio
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (₹ Cr) Sep 30, 2023 Mar 31, 2023 LIABILITIES & EQUITY (₹ Cr) Sep 30, 2023 Mar 31, 2023 Financial Liabilities Financial Assets Debt Securities 4,000 3,369 Cash and bank balances 1,850 1,005 Borrowings (Other than Debt Securities) 3,743 2,685 Loan Portfolio 8,862 7,76
Slide 19: Annexure
Annexure 18
Slide 20: Positive ALM and Stable Ratings
Positive ALM and Stable Ratings Positive ALM (₹ Cr)* Credit Rating – Spandana Sphoorty Financial Ltd 3,286 3,137 2,858 Rating Agency Rating Instrument Rating Year 2,553 2,185 ICRA Bank Facilities / NCD’s / MLD’s A Stable Aug 2023 2,024 Bank Facilities / NCD’s/ MLD’s A Stable Aug 2022 1,504 India-Ra
Slide 21: Well diversified presence
Well diversified presence AUM concentration* District level concentration % of AUM Largest 1.9% State Q2FY24 Q2FY23 Odisha 15% 16% Top 5 7.8% Madhya Pradesh 15% 17% Karnataka 11% 11% Top 10 13.4% Andhra Pradesh 11% 11% Maharashtra 10% 9% Top 20 22.8% Bihar 9% 7% Jharkhand 7% 6% Others 77.2% Chhattis
Slide 22: Metrics over the years
Metrics over the years AUM (₹ Cr) Disbursement (₹ Cr) 8,004 8,125 9,784 8,157 8,511 6,426 6,829 6,581 4,969 4,177 4,372 3,373 FY19 FY20 FY21 FY22 FY23 H1 FY19 FY20 FY21 FY22 FY23 H1 FY24 FY24 Net Income* (₹ Cr) PAT (₹ Cr) 1,113 1,082 352 1,019 940 312 740 245 691 145 70 12 FY19 FY20 FY21 FY22 FY23 H
Slide 23: Rapid branch expansion over past 9 months
Rapid branch expansion over past 9 months Borrowers (in L) Employees Borrowers / Branch & LO 27.0 12,677 3000 2,658 2,541 850 2,324 750 25.7 10,016 2500 2,097 650 1,840 1,795 24.6 24.5 8,224 8,644 8,763 2000 697 550 6,655 590 450 23.5 1500 350 22.6^ 1000 432 382 250 500 318 317 150 50 0 -50 FY19 FY2
Slide 24: Thank you!
Thank you! Investor Relations Strategic Growth Advisors Pvt. Ltd Abhishek Shah / Krunali Shah Spandana Sphoorty Financial Limited +91 99306 51660 / +91 98209 87564
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