Spandana Sphoorty Financial Limited · NSE:SPANDANA
Spandana Sphoorty Financial — Q4 FY25 & FY25 Earnings Presentation
33 slides from Spandana Sphoorty Financial's earnings presentation, May 30, 2025
Slide 1: Stock exchange cover letter
Ref: SSFL/Stock Exchange/2025-26/025 May 30, 2025 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 – 400051 Scr
Slide 2: Q4 FY25 & FY25 Investor Presentation
Invested in Bharat! Spandana Sphoorty Financial Limited Kurumba Art Q4 FY25 & FY25 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: Executive Summary
FY25 was a challenging year for the microfinance industry: • Multiple external headwinds including borrower overleveraging, weakening of JLG model, deterioration in borrower discipline and socio-political influences had an impact on the industry in FY25. • Cautious disbursement approach adopted as d
Slide 5: Underlying indicators show continuing upward trend in green shoots
Underlying indicators show continuing upward trend in green shoots Microfinance industry traversed a turbulent FY25 Green shoots continue to gain momentum Industry Portfolio* (₹ L Cr) • Pace of flows into higher buckets has slowed down in the recent months (11.6)% • Industry reporting X-bucket colle
Slide 6: Spandana following a conservative approach by tightening credit controls
Spandana following a conservative approach by tightening credit controls Key risk parameters put in place by Spandana Guidelines prescribed by SROs rd Spandana can be upto 3 microfinance lender Complies with Guardrail Households with a microfinance and unsecured retail loan exposure beyond ₹2,00,000
Slide 7: Multiple initiatives rolled-out during the year to tackle challenges
Multiple initiatives rolled-out during the year to tackle challenges Control function introduced at branch level to improve process hygiene & checks Increased Loan Officer head count to ease stress of field employees Dedicated team for collections from 90+ dpd customers Increased engagement with fie
Slide 8: Prudent measures taken to ensure sufficient liquidity
Prudent measures taken to ensure sufficient liquidity Liquidity (₹ Cr) Asset distribution (31-Mar-25) Diversified borrowing 2,115 2,030 22% 9% Cash & bank 24% balances 3% 1,839 Loan portfolio 57% 1,801 18% Other assets 67% Jan-25 Feb-25 Mar-25 28-May-25 Banks NBFC FPI Capital Markets On track to rai
Slide 9: ALM remains positive across maturity buckets
ALM remains positive across maturity buckets Positive ALM (₹ Cr)* Maturity profile* (in months) 2,623 10.3 9.4 8.2 1,883 7.4 1,719 1,506 1,569 1,552 1,394 943 478 492 567 375 442 389 58 26 upto 1m 1m to 2m 2m to 3m 3m to 6m 6m to 12m 1Y to 3Y 3Y to 5Y Over 5Y Mar-25 Dec-24 Assets Liabilites Avg. res
Slide 10: Spandana seeing improvements in lead indicators
Spandana seeing improvements in lead indicators X-Bucket Net Collection Efficiency (%) Recovery from 90+ (₹ Cr) 98.9% 52 98.0% 97.9% 97.9% 98.6% 96.7% 97.8% 97.7% 21 97.1% 96.4% 11 12 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 X-book Net CE (%) X-book Net CE (%) (Ex-K'taka) Q1FY25 Q2FY25 Q3FY25 Q4FY25 Lende
Slide 11: Long term goal remains intact; temporary pause in journey
Long term goal remains intact; temporary pause in journey Goal set out for the organization Our assessment Way forward • Conservative credit rules along with focus on quality borrowers to Customer acquisition led growth drive medium term growth • North India now contributes ~22% of AUM vs. ~13% in F
Slide 12: Reimagining customer journeys with enhanced focus on JLG
Reimagining customer journeys with enhanced focus on JLG Key technology and process enhancements to be introduced in FY26 Process improvements Geo fencing Village, center & member houses Face matching Across IDs, photos of center meeting Disbursement controls Presence of group members during applica
Slide 13: Focus in FY26 will be on serving quality borrowers
Focus in FY26 will be on serving quality borrowers March 2025 Borrower Base Split FY26 disbursement to follow similar trend as FY23 & FY24 15% >30dpd with SSFL 4% Others Share of disbursement to % of Annual Disbursement - 10% Existing & New Borrowers FY23 & FY24 96% current >3 lenders with SSFL 20%
Slide 14: Taking a step back to build a sustainable tomorrow
Taking a step back to build a sustainable tomorrow Rationalization of presence to have an impact on opex and efficiencies Rationalizing distribution network & head count Calibrated scale-back in certain markets while maintaining position in others Borrowers per LO* Mar-24 344 Mar-25 228 Mar-26 (P) ~
Slide 15: FY25 & Q4FY25 Results
FY25 & Q4FY25 Results 14
Slide 16: Operations consolidated in Q4FY25 owing to external factors
Operations consolidated in Q4FY25 owing to external factors Cautious disbursement approach and high delinquencies impact FY25 operations Q4 FY25 Q4 FY24 YoY (%) Q3 FY25 QoQ (%) FY25 FY24 YoY (%) Disbursement (₹ Cr) 365 3,970 (91)% 1,443 (75)% 5,605 10,688 (48)% AUM (₹ Cr) 6,819 11,973 (43)% 8,936 (2
Slide 17: Customer base at ~25L
Customer base at ~25L No. of customers (in L) Branch count 33.2 34.1 33.0 1,665 1,723 1,774 1,804 1,642 29.6 24.9 449 459 434 442 429 1,213 1,231 1,281 1,325 1,345 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Monthly Weekly Total Number of employees AUM per branch (₹ Cr) No.
Slide 18: Cautious disbursement approach adopted in wake of guardrails
Cautious disbursement approach adopted in wake of guardrails ₹6,819 Cr AUM at the end of FY25 AUM (₹ Cr) Disbursement (₹ Cr) 11,973 QoQ YoY YoY 11,723 (75) % (91)% (48) % 10,537 8,936 3,970 10,688 6,819 5,605 1,443 365 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Q3FY25 Q4FY25* Q4FY24 FY25 FY24 AUM Concentrat
Slide 19: Comfortable liquidity maintained
Comfortable liquidity maintained Incremental borrowing (in ₹ Cr) Cost of borrowing QoQ YoY YoY 12.2% 12.1% (46)% (86)% (57)% 11.9% 11.7% 11.7% 11.8% 10,441 11.6% 11.7% 11.4% 3,428 10.8% 4,482 872 473 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q4 FY25 FY24 FY24 FY25 FY25 FY25 FY25 FY25 FY25 FY24 Cost of Borrowing Marginal
Slide 20: PCR maintained at ~80%
PCR maintained at ~80% Consolidated Standalone Asset Classification Loans ECL Loans ECL % of Loans % of Loans Outstanding Provision Coverage Outstanding Provision Coverage Outstanding Outstanding (₹ Cr) (₹ Cr) (₹ Cr) (₹ Cr) Stage 1 (Current) 5,194 82.57% 64 1.23% 4,552 82.75% 40 0.88% Stage 1 (1 – 3
Slide 21: FY25 PPOP at ₹608 Cr impacted by lower AUM, higher opex & reversals
FY25 PPOP at ₹608 Cr impacted by lower AUM, higher opex & reversals In ₹ Cr Income Net Interest Income QoQ YoY YoY QoQ YoY YoY (26) % (40) % (3) % (26) % (48) % (5) % 2,424 2,511 1,228 1,289 703 569 378 419 265 197 Q3 Q4 Q4 FY25 FY24 Q3 Q4 Q4 FY25 FY24 FY25 FY25 FY24 FY25 FY25 FY24 PPOP^ PAT* QoQ Yo
Slide 22: Yield and NIM impacted by decline in AUM and higher delinquencies
Yield and NIM impacted by decline in AUM and higher delinquencies Cost of borrowing at 12% for FY25 Yield (%) Cost of Borrowing (%) QoQ YoY YoY QoQ YoY YoY (0.4)% (3.4)% (1.7)% (0.1)% +0.4% (0.2)% 24.2% 24.2% 22.5% 12.2% 12.1% 12.0% 12.2% 21.1% 11.7% 20.7% Q3 Q4 Q4 FY25 FY24 Q3 Q4 Q4 FY25 FY24 FY25
Slide 23: Elevated cost-to-income due to higher opex & lower income
Elevated cost-to-income due to higher opex & lower income Decline in RoA due to high impairment cost & deliberate slowdown in disbursement Cost to income (%) ROA (Total Assets) (%) QoQ YoY YoY QoQ YoY YoY +6.6% +40.7% +17.1% (4.7)% (28.5)% (16.2)% 78.5% 85.1% 60.6% 5.0% 5.5% 44.4% 43.5% -18.9% -10.8
Slide 24: Consolidated Net-worth of ₹2,633 Cr, CRAR at 37.1%
Consolidated Net-worth of ₹2,633 Cr, CRAR at 37.1% Gearing at 2.1x (consolidated) SSFL Standalone Net-worth & CRAR 4000 2.7 3,707 35.7% 36.0% 36.3% 3,645 3,507 2.6 5000 32.0% 32.7% 35.00% 3500 2.6 3,082 2.5 30.00% 4000 3000 3,556 3,614 3,426 25.00% 2,633 2.4 3,047 3000 2500 2.4 2,623 20.00% 2.3 15.0
Slide 25: Consolidated Income Statement
Consolidated Income Statement Particulars (₹ Cr) Q4 FY25 Q3 FY25 Q4 FY24 QoQ YoY FY25 FY24 YoY Revenue from Operations Interest income on loans 383 494 628 (22)% (39)% 2,160 2,216 (3)% Net gain on fair value changes 24 49 34 (50)% (29)% 161 162 (1)% Interest on deposits with banks 8 9 8 (12)% 6% 34
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (₹ Cr) Mar 31, 2025 Mar 31, 2024 LIABILITIES & EQUITY (₹ Cr) Mar 31, 2025 Mar 31, 2024 Financial Liabilities Financial Assets Debt Securities 2,264 4,064 Cash and bank balances 1,844 1,872 Borrowings (Other than Debt Securities) 3,391 5,340 Loan Portfolio 5,708 11,0
Slide 27: Annexure
Annexure 26
Slide 28: Credit Rating
Credit Rating Spandana Sphoorty Financial Ltd Rating / Outlook Rating / Outlook Rating Agency Rating Instrument (Current) (31-Dec-24) ICRA Bank Facilities / NCD’s A / Negative A+ / Negative India Ratings Bank Facilities / NCD’s A / Negative A+ / Negative Bank Facilities / NCD’s A / Negative A+ / Neg
Slide 29: Well diversified presence
Well diversified presence AUM concentration* - ~49% from top 4 States District level concentration* % of AUM Largest 1.8% State Mar-25 Mar-24 Mar-23 Top 5 8.5% Odisha 13% 14% 15% Madhya Pradesh 13% 13% 17% Top 10 14.0% Bihar 12% 12% 8% Andhra Pradesh 11% 10% 11% Top 20 22.8% 3% 5% Karnataka 10% 10%
Slide 30: Metrics over the years
Metrics over the years AUM (₹ Cr) Disbursement (₹ Cr) GNPA (%) & NNPA (%) 10,688 18.7% 11,973 8,125 8,157 8,511 6,819 6,426 6,581 5,605 10.5% 3,373 5.6% 3.1% 2.1% 1.4% 1.5% 1.2% 0.6% 0.3% FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 GNPA (%) NNPA (%) Net Interest Income
Slide 31: Accelerated growth delivered over last year
Accelerated growth delivered over last year Customers (in L) Employees Customers / Branch & LO 33.2 18,382 2500 2,324 850 2,097 2,021 1,914 750 24.5 23.5 24.9 14,243 2000 650 22.6 1,383 550 1500 10,016 450 8,644 8,763 350 1000 432 382 250 500 343 344 150 208 50 0 -50 FY21 FY22 FY23 FY24 FY25 FY21 FY
Slide 32: Glossary
Glossary Key Ratio Abbreviation Definition 1 Portfolio Yield Yield Interest income divided by average monthly loan outstanding 2 Cost of borrowing COB Interest expenses divided by average monthly borrowing outstanding 3 Marginal COB (XIRR) Multiplication of borrowing availed during the period and co
Slide 33: Thank you!
Thank you! Investor Relations Strategic Growth Advisors Pvt. Ltd Abhishek Shah Spandana Sphoorty Financial Limited +91 99306 51660
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