Spandana Sphoorty Financial Limited · NSE:SPANDANA
Spandana Sphoorty Financial — Q1 FY2021 Earnings Presentation
37 slides from Spandana Sphoorty Financial's earnings presentation, Sep 1, 2020
Slide 1: Stock exchange cover letter
Ref: SSFL/Stock Exchange/2020-21/46 Date: August 31, 2020 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 – 40
Slide 2: Spandana Sphoorty Financial Limited Investor Presentation August 2020
Spandana Sphoorty Financial Limited ….Committed to low-income households Investor Presentation August 2020 17 Years Q1FY21
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: Agenda
1 COVID-19 Business Update 2 Performance Snapshot 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 5: Spandana best placed to overcome COVID-19 crisis
Spandana best placed to overcome COVID-19 crisis AP crisis: 2010 Spandana was the only MFI to • Kept on-ground presence in AP by keeping collect ~44% of the total AP branches open and engaging with portfolio compared to other customers MFIs which didn’t collect more than 25% Demonetization: 2016 Spa
Slide 6: Covid-19 Business Update
Covid-19 Business Update Resumed Operations: Collection Efficiency: Employees: ✓ We have collected over Rs. 1,400 crs since lockdown until 30th August’20, despite ✓ Following the Central Government’s the restrictions in operations announcement of a complete lockdown from 24th March 2020 onwards, ✓ C
Slide 7: Covid-19 Business Update
Covid-19 Business Update Strong Liquidity Position: ✓ As of 30th June 2020, Company has Rs. 764 crs as Cash & Cash equivalent balance and sanctions in pipeline over Rs. 1,200 crs ✓ We have raised Rs. 1,490 crs since nationwide lockdown till August 30, 2020 ✓ Capital adequacy ratio of 53.0% ✓ Despite
Slide 8: Strong Collections Trend
Strong Collections Trend Collected over Rs. 1,400 crs since lockdown* Collection Efficiency (%) 72% 72% 74% 92% 59% 60% 50% 54% 75% 75% 80% 43% 71% 62% 23% 2% April May 6th Jun 13th Jun 20th Jun 27th Jun Overall Jun 4th Jul 11th Jul 18th Jul 25th Jul Overall Jul 8th Aug 15th Aug 22nd Aug 30th Aug Ab
Slide 9: Break-up of Provisions
Break-up of Provisions Cumulative Cumulative Provision as per Particulars (Rs. crs) Q4 FY20 Q1 FY21 Provision for Balance sheet as on Q4FY20 & Q1FY21 Jun 30, 2020 Provision in the normal course of business 30 22 52 56 Impact of non old-AP portfolio write-off* 29 - - - Covid & Other Provisions 129 89
Slide 10: Agenda
1 COVID-19 Business Update 2 Performance Snapshot 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 11: Performance Snapshot
Performance Snapshot Largest NBFC-MFI in terms of Profit Before Tax (PBT) & Profit After Tax (PAT) Net Worth PAT(1) (LTM) Presence in 18 Rs. 2,695 crs Rs. 148 crs States (Leverage: 1.16x) (+59% Y-o-Y) 2nd Largest NBFC-MFI in terms of Market Capitalization Marginal Cost of GNPA / NNPA Capital Adequac
Slide 12: Q1FY21 – Strong Performance despite Covid-19
Q1FY21 – Strong Performance despite Covid-19 Disbursement (Rs. crs) No. of Borrowers (In lakhs) No. of Branches No. of Employees +3% +9% +5% 1,963 Lower 25.7 1,013 7,433 25.0 929 7,062 disbursement on account of Operating COVID-19 pandemic Metrics 49 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20
Slide 13: Agenda
1 COVID-19 Business Update 2 Performance Snapshot 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 14: Operational Summary
Operational Summary AUM (Rs. crs) Disbursements (Rs. crs) Borrowers (In lakhs) On-Book Off-Book* Less focus towards Borrower addition due CAGR to COVID-19 pandemic CAGR 6,829 6,835 CAGR 8,004 +35% +47% +44% 24.6 25.7 25.7 Lower disbursement on 4,372 4,422 4,474 4,969 account of COVID-19 3,166 3,858
Slide 15: Rising Branch and Employee Productivity
Rising Branch and Employee Productivity Borrowers/Branch (#) AUM/Borrower (Rs.) Borrowers/Loan Officer (#) CAGR +5% -5.7% Excl. Trainees Incl. Trainees 2,689 26,610 26,611 700 2,658 2,541 2,535 577 2,285 589 606 19,970 19,911 17,780 513 667 526 495 473 421 Mar-18 Mar-19 Mar-20 Jun-19 Jun-20 Mar-18 M
Slide 16: Diversified Geographical Presence
Diversified Geographical Presence Well dispersed district level exposure State-wise Concentration Well spread AUM Mix ensures low impact from region-specific issues Top States AUM Concentration Madhya Pradesh 17% District wise Concentration Orissa 17% < 0.5% 214 Maharashtra 13% Karnataka 13% 0.01% 0
Slide 17: Agenda
1 COVID-19 Business Update 2 Performance Snapshot 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 18: Financial Performance
Financial Performance Total Income (Rs. crs) Net Interest Income (Rs. crs) Yield (%) Cost of Borrowings (%) +288% +310% -550 bps -840 bps 1,470 906 29.5% 20.3% 25.7% 26.2% 24.0% 23.0% 1,049 623 14.2% 13.5% 11.9% 11.0% 588 341 379 221 264 327 FY17 FY18 FY19 FY20 Q1FY21 FY17 FY18 FY19 FY20 Q1FY21 FY17
Slide 19: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. crs) Q1 FY21 Q1 FY20 Y-o-Y Q4 FY20 Q-o-Q Revenue from Operations Interest and Fee Income 309.8 277.3 297.6 Net gain on fair value changes 15.5 14.8 108.6 Fees & commission 0.0 4.9 17.4 Other Operating Income 0.7 1.2 5.1 Total income from operations 326.0 298.
Slide 20: Balance Sheet
Balance Sheet ASSETS (Rs. crs) Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 LIABILITIES & EQUITY (Rs. crs) Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 Financial Assets Financial Liabilities Cash and cash equivalents 762.3 59.6 104.3 Debt Securities 778.6 777.6 1,099.0 Bank Balances other than cash and cash Bor
Slide 21: Diversified Borrowing Profile
Diversified Borrowing Profile Total borrowings raised since lockdown Rs. 1,490 crs and No moratorium availed from lenders Borrowings (Rs. crs)* Diversified Funding Mix (As on Jun-20) Improving Credit Rating (3 upgrades by ICRA in two years) 4,941 5,020 4% A- 4% Private Banks 1,916 1,887 3,108 1% Pub
Slide 22: Comfortable Liquidity Position
Comfortable Liquidity Position Jul-20 Aug-20 Sep-20 Particulars (Rs. crs) (Actual) (Projected) (Projected) Opening Cash & Equivalents 764 643 562 Loan collections [Principal & Interest] 437 486 520 ✓ Spandana has not availed any moratorium on Fresh Borrowings 74 250 600 its term loan dues Total Infl
Slide 23: Agenda
1 COVID-19 Business Update 2 Performance Snapshot 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 24: Company Overview
Company Overview ▪ Founded by Padmaja Reddy who has over 24 years of experience in development and microfinance sector ▪ Operating as an NBFC since 2004 and NBFC-MFI since 2015 ▪ By March 2010, we were the 2nd largest MFI in India in terms of AUM and borrowers and were one of the most profitable pla
Slide 25: Focused on Rural Markets
Focused on Rural Markets MFIs - Urban vs. Rural AUM Split* MFIs - Urban vs. Rural Industry Portfolio Quality* 4.15% 5% 2.37% 46% Spandana MFI Industry 54% (Jun 30, 2020) 0.86% 0.99% 0.94% 1.00% 95% 1 - 30 31-180 180+ Rural Urban Rural Urban ▪ Close to 68% of India’s population live in rural areas# ▪
Slide 26: Our Products
Our Products Product Name Purpose Interest Rate (%) Tenor Ticket Size (Rs.) Core Product: 98% of AUM • Abhilasha stands for “Aspiration” • This unique loan is designed especially for low-income households who aspire to improve their financial well-being Abhilasha 21.55% 1 to 2 Years 25,000 to 80,000
Slide 27: Efficient Business Process
Efficient Business Process 2 • Scanned Documents uploaded to the app directly • Data is entered directly into the app by the loan officer 1 and key data entry is 3 • Group Formation with 8 to 10 automated members • Group training, house visits, • KYC Document collection credit appraisal, group throu
Slide 28: Niche Business Model
Niche Business Model Business Model Processes HR policies ▪ Standardized systems and a front-end ▪ Group size of 8 to 10 women interface that gives real time ▪ Strict employee transfer policy with information on demand and collections adherence to operational risk control ▪ Loans given under Joint L
Slide 29: Agenda
1 COVID-19 Business Update 2 Performance Snapshot 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 30: Implemented Learning from AP Crisis
Implemented Learning from AP Crisis Diversified Geographical Presence No. of States and UT’s No. of Districts Top State Contribution Top 3 States Contribution present 68% 41% +6 18 +89 281 53% reduction 81% reduction 12 192 48% 17% Sep-10 Jun-20 Sep-10 Jun-20 Sep-10 Jun-20 Sep-10 Jun-20 Reduced Leve
Slide 31: Strong Performance since CDR Exit
Strong Performance since CDR Exit 3rd Largest MFI Rs. crs CDR Exit in the Country* March-17 3.25 Yrs Jun-20 5.3x Gross AUM (excl. old AP) 1,297 6,835 Net worth# 928 2.9x 2,696 Gross PAR 90+ 89@ Reduced by 64% 32 Profit before Tax 46 # 17x 772(1) Lenders 3 10x 31 Credit rating^ NA 3 Upgrades A - (Sta
Slide 32: Key Takeaways
Key Takeaways Largest NBFC-MFI (LTM PBT) & (LTM PAT) 2nd largest NBFC-MFI (Market cap) 3rd Largest NBFC-MFI (AUM) Rural High Geographic Well Capitalized Low Operating Focus Diversity Expenses 17 states 1 Union Territory 53.0% Capital Adequacy 281 districts 3.1% Opex ratio 95% portfolio in Ratio 1,01
Slide 33: Agenda
1 COVID-19 Business Update 2 Performance Snapshot 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 34: Historical Profit & Loss Statement
Historical Profit & Loss Statement Particulars (Rs. crs) 31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17 Interest Income 1,169 998 573 371 Commission Income 37 15 4 4 Net gain on fair value changes 219 27 4 2 Others 11 4 6 1 Total Revenue from operations 1,435 1,043 587 377 Other income 34 5 0 2 Total Incom
Slide 35: Historical Balance Sheet
Historical Balance Sheet March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, ASSETS (Rs. crs) LIABILITIES & EQUITY (Rs. crs) 2020 2019 2018 2017 2020 2019 2018 2017 Financial Assets Financial Liabilities Debt Securities 778 1,372 1,015 - Cash and cash equivalents 60 149 1
Slide 36: Glossary
Glossary Sr. No. Particulars Formula 1 Networth Shareholders Fund + Other Equity excluding Non controlling interest 2 Capital Adequacy Tier I ratio + Tier II ratio 3 Leverage Closing On Balance sheet Borrowings / Closing Net worth 4 Marginal Cost of Borrowing (Borrowings availed during the period *
Slide 37: Thank You
Contact Information Company : Investor Relations Advisor : Spandana Sphoorty Financial Limited Strategic Growth Advisors Pvt. Ltd. CIN: L65929TG2003PLC040648 CIN: U74140MH2010PTC204285 Mr. Satish Kottakota Ms. Payal Dave / Ms. Neha Shroff Chief Financial Officer E: payal.dave@sgapl.net / neha.shroff
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