Spandana Sphoorty Financial Limited · NSE:SPANDANA
Spandana Sphoorty Financial — H1 FY2021 Earnings Presentation
33 slides from Spandana Sphoorty Financial's earnings presentation, Nov 16, 2020
Slide 1: Cover letter to stock exchanges
Ref: SSFL/Stock Exchange/2020-21/95 Date: November 16, 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 –
Slide 2: Spandana Sphoorty Financial Limited Investor Presentation
Spandana Sphoorty Financial Limited ….Committed to low-income households Investor Presentation November 2020 17 Years Q2FY21
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 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 effect from
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 AP portfolio branches open and engaging with while other MFIs were below customers 25% Demonetization: 2016 Spandana got back to 95%+ 17+ • Few
Slide 6: Business Update
Business Update Branch Operations: Disbursement (INR Cr.) 905 814 ✓ All branches became operational and 100% of staff have resumed to work 530 ✓ Cumulatively collected more than Rs. 2,700 Cr till October despite the challenges on account of COVID-19 199 ✓ Disbursed Rs.1,634 Crs in Q2 FY21 which is a
Slide 7: Break-up of Provisions
Break-up of Provisions Cumulative Provision as per Particulars (Rs. crs) Q4 FY20 Q1 FY21 Q2 FY21 Balance sheet as on Sep 30, 2020 Provision in the normal course of business 30 22 8 64 Impact of write-off* 29 - - - COVID & Other Provisions 129 89 114 332 Total Impairment on Financial Instruments (as
Slide 8: Agenda
1 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 effect from
Slide 9: Performance Snapshot
Performance Snapshot Largest NBFC-MFI in terms of Profit Before Tax (PBT) & Net Worth PAT (H1FY21)(1) Presence in 18 Profit After Tax (PAT) (LTM) Rs. 2,750 crs Rs. 329 crs States (Leverage: 1.22x) (+32% Y-o-Y) 2nd Largest NBFC-MFI in terms of Market Capitalization Marginal Cost of GNPA / NNPA Capita
Slide 10: Q2FY21 – Strong Performance despite Covid-19
Q2FY21 – Strong Performance despite Covid-19 Disbursement (Rs. crs) No. of Borrowers (In lakhs) No. of Branches No. of Employees +4% +9% +4% -11% 1,829 25.8 1,027 7,309 7,614 1,634 24.7 941 Operating Metrics Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Net Interest Income (Rs. crs) NIM (%
Slide 11: Agenda
1 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 effect from
Slide 12: Operational Summary
Operational Summary AUM (Rs. crs) Disbursements (Rs. crs) Borrowers (In lakhs) On-Book Off-Book* CAGR 7,354 CAGR 8,004 Lower disbursement +35% CAGR 6,829 +47% +44% on account of COVID-19 pandemic 24.6 25.7 25.8 4,372 4,969 4,422 5,551 3,858 15.9 3,166 10.6 3,568 1,683 2,482 2,407 1,803 685 804 Mar-1
Slide 13: Rising Branch and Employee Productivity
Rising Branch and Employee Productivity Borrowers/Branch (#) AUM/Borrower (Rs.) Borrowers/Loan Officer (#) CAGR +5% Excl. Trainees Incl. Trainees -4.5% 2,658 28,523 700 2,541 2,630 2,511 26,610 577 2,285 589 592 21,850 547 19,970 17,780 667 526 470 443 421 Mar-18 Mar-19 Mar-20 Sep-19 Sep-20 Mar-18 M
Slide 14: 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% 216 Maharashtra 13% Karnataka 13% 0.01% 0
Slide 15: Agenda
1 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 effect from
Slide 16: Financial Performance
Financial Performance Total Income (Rs. crs) Net Interest Income (Rs. crs) Yield (%) Cost of Borrowings (%) +288% +310% -550 bps +700 bps 1,470 906 29.5% 20.3% 25.7% 26.2% 25.2% 24.0% 22.4% 1,049 623 14.2% 13.5% 551 11.9% 12.3% 10.6% 671 681 410 588 341 379 221 FY17 FY18 FY19 FY20 H1FY20 H1FY21 FY17
Slide 17: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. crs) Q2 FY21 Q2 FY20 Y-o-Y Q1 FY21 Q-o-Q H1 FY21 H1FY20 Y-o-Y Revenue from Operations Interest and Fee Income 317.3 302.4 309.8 627.1 579.7 Net gain on fair value changes 23.8 48.3 15.5 39.2 63.1 Fees & commission 0.4 5.9 0.0 0.4 10.8 Other Operating Income 3
Slide 18: Balance Sheet
Balance Sheet ASSETS (Rs. crs) Sep 30, 2020 Mar 31, 2020 Sep 30, 2019 LIABILITIES & EQUITY (Rs. crs) Sep 30, 2020 Mar 31, 2020 Sep 30, 2019 Financial Assets Financial Liabilities Cash and cash equivalents 461.7 59.6 781.0 Debt Securities 752.7 777.6 1,177.1 Bank Balances other than cash and cash Bor
Slide 19: Diversified Borrowing Profile
Diversified Borrowing Profile Total borrowings raised since lockdown Rs. 2,548 crs and No moratorium availed from lenders Borrowings (Rs. crs)* Credit Ratings DA 4,941 4,860 Rating Instrument Rating Agency Rating PTC NCDs 1,916 1,513 3,108 Term Loan 140 384 2,331 772 540 369 238 747 600 933 268 2,59
Slide 20: Comfortable Liquidity Position
Comfortable Liquidity Position Positive ALM Mismatch (Rs. crs) Liquidity Position Assets Cash & Cash Equivalents 544 Liabilities Rs. 462 crs. Upto 1 Month as on Sep-20 371 239 1 to 2 Months 228 Positive ALM mismatch across all the buckets, where Fund raised in October’20 Rs. 499 crs. 409 its assets
Slide 21: Agenda
1 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 effect from
Slide 22: 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 23: Focused on Rural Markets
Focused on Rural Markets MFIs - Urban vs. Rural AUM Split* MFIs - Urban vs. Rural Industry Portfolio Quality* 4.15% 6% 2.37% 46% Spandana MFI Industry 54% (Sep 30, 2020) 0.86% 0.99% 0.94% 1.00% 94% 1 - 30 31-180 180+ Rural Urban Rural Urban ▪ Close to 68% of India’s population live in rural areas# ▪
Slide 24: 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 20.98% 1 to 2 Years 25,000 to 80,000
Slide 25: 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 26: 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 27: Agenda
1 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 effect from
Slide 28: 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% 42% +6 18 +90 282 53% reduction 81% reduction 12 192 47% 17% Sep-10 Sep-20 Sep-10 Sep-20 Sep-10 Sep-20 Sep-10 Sep-20 Reduced Leve
Slide 29: Strong Performance since CDR Exit
Strong Performance since CDR Exit 3rd Largest MFI Rs. crs CDR Exit in the Country* March-17 3.5 Yrs Sep-20 5.7x Gross AUM (excl. old AP) 1,297 7,354 Net worth# 928 3.0x 2,750 Gross PAR 90+ 89@ Reduced by 40% 54 Profit before Tax 46 # 17x 772(1) Lenders 3 10x 31 Ind A (Stable); Credit rating^ NA 4 Up
Slide 30: 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 45.0% Capital Adequacy 282 districts 3.0% Opex ratio 94% portfolio in Ratio 1,02
Slide 31: Annexure
1 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 effect from
Slide 32: 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 33: Thank You
Contact Information Company : Investor Relations Advisor : Spandana Sphoorty Financial Limited Strategic Growth Advisors Pvt. Ltd. CIN: L65929TG2003PLC040648 CIN: U74140MH2010PTC204285 Mr. Aditya Kumar Ms. Payal Dave / Ms. Neha Shroff VP – Investor Relations E: payal.dave@sgapl.net / neha.shroff@sga
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