Spandana Sphoorty Financial Limited · NSE:SPANDANA

Spandana Sphoorty Financial — Q1 FY24 Earnings Presentation

21 slides from Spandana Sphoorty Financial's earnings presentation, Jul 24, 2023

  1. Slide 1: Stock exchange filing cover letter

    Ref: SSFL/Stock Exchange/2023-24/064 Date: July 24, 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, BandraKurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 4000

  2. Slide 2: Q1 FY24 Investor Presentation

    Spandana Sphoorty Financial Limited Q1 FY24 Investor Presentation Celebrating India!

  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: Significant progress made on 5 priorities

    Significant progress made on 5 priorities Part of Vision 2025 articulated in July 2022 Status 1 People 2 Strengthen Governance, Risk and Control 3 Customer Acquisition led growth 4 Scale-up of technology to deliver an end-to-end paperless process 5 Customer focused initiatives with emphasis on Produ

  5. Slide 5: Q1 FY24 key highlights

    YOY - AUM up 60%, Client addition up 144%, NII up 102%, GNPA 1.63%, PAT ₹119 Cr v/s loss of ₹220 Cr in Q1, FY23. Delivering customer acquisition led growth Improving Portfolio Quality Client Addition Disbursement AUM 1 – 90 DpD GNPA NNPA 2.6 L ₹1,664 Cr ₹8,848 Cr 1.36% 1.63% 0.49% YoY QoQ YoY QoQ Yo

  6. Slide 6: Momentum on increasing distribution sustained

    Momentum on increasing distribution sustained 188 branches added over last 2 quarters; ~13% YoY growth in borrower base No. of borrowers (in L) AUM per branch (In ₹ Cr) 24.1 6.9 21.7 22.4 22.6 6.8* 21.3 86% Rural 6.1 14% 5.5 Semi-Urban / Urban 5.3 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec

  7. Slide 7: Focus on new member acquisition sustained

    Focus on new member acquisition sustained 144% YoY growth in borrower addition; ~26% new borrowers from 7 focus states New Members acquired (in ‘000) 26% from 7 focus states 427 1. Rajasthan 2. Uttar Pradesh 3. Bihar 4. West Bengal 260 7 Focus 5. Haryana States 6. Tamil Nadu 219 26% 144% 7. Gujarat

  8. Slide 8: AUM growth momentum continues

    AUM growth momentum continues ~60% YoY growth in AUM; 26% YoY growth in Disbursement 60% AUM Growth over last 4 Quarters AUM – QoQ Growth of 4% 8,848 4% 8,848 8,511 60% 6,852 5,513 5,782 5,513 Q1FY23* Q1FY24 Q1FY23* Q2FY23 Q3FY23^ Q4FY23# Q1FY24 Disbursement (in ₹ Cr) 3,054 2,361 26% 1,664 1,320 1,3

  9. Slide 9: Net Collection Efficiency improves to 98.1%, Current book at 97.1%

    Net Collection Efficiency improves to 98.1%, Current book at 97.1% Collection Efficiency (%) AUM & Current book 106.1% 8,848 101.3% 102.1% 102.5% 101.5% 105.0% 8,511 8,500 100.0% 97.6% 98.1% 96.6% 97.1% 94.0% 93.3% 94.5% 8,000 95.0% 92.1% 7,500 90.0% 86.9% 85.8% 7,000 6,852 85.0% 6,500 80.0% 6,000 5

  10. Slide 10: Portfolio quality: 1-90 book at 1.36%

    Portfolio quality: 1-90 book at 1.36% Improvement of +0.18% over previous quarter 1 – 90 dpd 1 – 30 dpd 8.36% 14.40% 7.51% 4.03% 5.73% 2.86% 2.59% 1.16% 1.54% 1.36% 0.58% 0.55% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 31 – 60 dpd 61 – 90 dpd 3.41% 2.57% 1.9

  11. Slide 11: GNPA and NNPA reduction

    … accompanied by GNPA and NNPA reduction 18.65% 10.46% 7.37% 42% of GNPA is from 6.69% 5.31% Pre-April’21 book 3.84% 3.24% 2.52% 2.07% 1.63% 0.64% 0.49% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GNPA NNPA Flows: 0.5% of AUM has moved forward while balance has been pulled back or stayed in same bucke

  12. Slide 12: Portfolio risk sufficiently covered with PCR at 70%

    Portfolio risk sufficiently covered with PCR at 70% Q1 FY24 Q4 FY23 Provisioning & Loans ECL Loan ECL Coverage % of Loans % of Loan Outstanding Provision Coverage Outstanding Provision Coverage Outstanding Outstanding (₹ Cr)^ (₹ Cr) (₹ Cr)^ (₹ Cr) Stage 1 8,191 97.56% 85 1.04% 7,766 96.97% 90 1.16%

  13. Slide 13: Lender relationships being strengthened

    Lender relationships being strengthened ~894% YoY growth in fund mobilization Total borrowing (in ₹ Cr) Diversified borrowing mix^ 2,402 2,138 7% 31% 1,540 1,080 ₹6,868 Cr 40% 4% 18% 155 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 PSU Private Banks NBFC FPI Capital markets • Marginal cost of borrowing slight

  14. Slide 14: Income and Yields continue to trend higher

    Income and Yields continue to trend higher NII up 102%, Yield at 24%, PAT ₹119 Cr (-₹220 Cr in Q1 FY23) Total Income* (₹ Cr) Net Interest Income* (₹ Cr) Yield (%) Cost of Borrowing* (%) YoY QoQ YoY QoQ YoY QoQ YoY QoQ +104% -1% +102% -15% +765 bps +120 bps +71 bps +9 bps 384 24.0% 22.8% 12.5% 12.4%

  15. Slide 15: ROA at 5.9%, Opex to AUM 6.4%; Net-worth increases

    ROA at 5.9%, Opex to AUM 6.4%; Net-worth increases to ₹3,228 Cr Cost to income (%) Opex to AUM (%) Net-worth (₹ Cr) 7.7% 68.7% 6.4% 6.6% 3,228 42.7% 3,099 36.2% 2,961 2,817 2,867 Q1 Q1 Q4 Q1 Q1 Q4 FY23 FY24 FY23 FY23 FY24 FY23 ROA (%) ROE (%) 5.9% 5.9% 15.2% 14.1% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24

  16. Slide 16: Consolidated Income Statement

    Consolidated Income Statement Particulars (₹ Cr) Q1 FY24 Q4 FY23 Q1 FY23 Revenue from Operations Interest income 490 419 244 Net gain on fair value changes 13 66 4 Other Income 9 13 2 Total income from operations 512 498 250 Non-operational Income 16 35 9 Total income 527 533 259 Expenses Finance co

  17. Slide 17: Consolidated Balance Sheet

    Consolidated Balance Sheet ASSETS (₹ Cr) Jun 30, 2023 Mar 31, 2023 LIABILITIES & EQUITY (₹ Cr) Jun 30, 2023 Mar 31, 2023 Financial Liabilities Financial Assets Debt Securities 3,574 3,369 Cash and bank balances 1,056 1,005 Borrowings (Other than Debt Securities) 2,788 2,685 Loan Portfolio 8,203 7,76

  18. Slide 18: Annexure

    Wy WN procenscceceneceney Annexure Licceneencnnennnel

  19. Slide 19: Positive ALM and Stable Ratings

    Positive ALM and Stable Ratings Positive ALM (₹ Cr)* Credit Rating – Spandana Sphoorty Financial Ltd 3,233 3,166 Rating Agency Rating Instrument Rating Year 2,527 2,267 ICRA Bank Facilities / NCD’s / MLD’s A- Positive Mar 2023 Bank Facilities / NCD’s/ MLD’s A Stable 1,527 India-Ra Jan 2023 1,355 1,3

  20. Slide 20: Well diversified presence

    Well diversified presence AUM concentration* District level concentration Largest 2.0% Top 5 7.8% Top 10 13.7% Top 20 23.0% Others 79.0% Branch level concentration Largest 0.3% Top 5 1.3% Top 10 2.4% Top 20 4.6% Others 95.4% * Standalone 19

  21. Slide 21: Thank you!

    Thank you! Spandana Sphoorty Financial Limited Investor Relations Rahul Dhamale Strategic Growth Advisors Pvt. Ltd Head – Investor Relations Abhishek Shah / Krunali Shah +91 40 4547 4763 +91 99306 51660 / +91 98209 87564 investor.relations@spandanasphoorty.com

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