Spandana Sphoorty Financial Limited · NSE:SPANDANA

Spandana Sphoorty Financial — Q3 FY23 Earnings Presentation

21 slides from Spandana Sphoorty Financial's earnings presentation, Jan 31, 2023

  1. Slide 1: Cover letter to stock exchanges on investor presentation

    Ref: SSFL/Stock Exchange/2022-23/142 Date: January 31, 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 – 4

  2. Slide 2: Spandana Sphoorty Financial Limited Q3 FY23 Investor Presentation

    Spandana Sphoorty Financial Limited ….Committed to low-income households Q3 FY23 Investor Presentation 18 Years

  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: Q3 FY23 Business Performance

    Q3 FY23 Business Performance

  5. Slide 5: Q3 FY23: Increased momentum across all parameters

    Q3 FY23: Increased momentum across all parameters 19% QoQ growth in AUM Calibrated Start of Growth Engine Improving Asset Quality Client Addition Disbursement AUM 1 – 90 DpD GNPA NNPA 2.19 L ₹2,361 Cr ₹6,852 Cr 2.6% 5.3% 2.5% 77% QoQ 70% QoQ 19% QoQ 310 bps QoQ 210 bps QoQ 130 bps QoQ Healthy Fund R

  6. Slide 6: Positive movement across all key operational growth vectors

    Positive movement across all key operational growth vectors No. of borrowers AUM per Branch (In lakhs) (In ₹ Cr) +3.2% +10.9% 6.1 23.5 21.3 21.7 22.4 5.9 87% Rural 5.5 13% Urban 5.3 Mar-22 Jun-22 Sep-22 Dec-22 Mar-22 Jun-22 Sep-22 Dec-22 Number of Employees Branch count No. of Employees 8,763 8,294

  7. Slide 7: New member acquisition drives growth

    New member acquisition drives growth 77% growth over Q2; 46% loan to new members Split of Disbursements (loan count) Q2FY23 Q3FY23 46% 46% 54% 54% Existing member loans New member loans New members acquired (in ‘000) +77% 219 123 101 106 Q4FY22 Q1FY23 Q2FY23 Q3FY23 6

  8. Slide 8: Strong momentum in disbursement

    Strong momentum in disbursement ~70% increase over Q2 Disbursement (in ₹ Cr) +70% 2,361 1,385 1,391 1,320 Q4FY22 Q1FY23 Q2FY23 Q3FY23 7

  9. Slide 9: Improvement in current book from 68.4% to 92.1%

    Improvement in current book from 68.4% to 92.1% Collection efficiency continues to be stable AUM & Current Book Collection Efficiency (Incl. Arrears) Post Apr-21 48% 70% 82% 92% (% of AUM) 95.0% 7,000 18.5% 106.1% 6,852 102.4% 102.1% 101.3% 6,800 92.1% 90.0% 6,600 86.9% 85.8% 6,400 85.0% 6,200 6,089

  10. Slide 10: Consistent improvement in (1 to 90) book

    Consistent improvement in (1 to 90) book… 1 to 90 book down by 54% QoQ 14.4% 1 to 90 Book 8.4% 1 to 30 DPD 7.5% 4.0% 5.7% 2.9% 2.6% 1.2% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 31 to 60 DPD 61 to 90 DPD 3.4% 2.6% 1.6% 1.9% 1.4% 1.5% 0.9% 0.8% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23

  11. Slide 11: Accompanied by GNPA & NNPA reduction

    … accompanied by GNPA & NNPA reduction… 17.2% 8.9% 7.4% 6.7% 5.3% 3.8% 3.2% 2.5% Q4FY22 Q1FY23 Q2FY23 Q3FY23* GNPA NNPA • Provisions for NPA amounts to ₹191 Cr • Total provisions of ₹272 Cr (4.0% of AUM) on Balance Sheet – sufficient to cover any risk in the portfolio * Post Sale of ₹117 Cr portfoli

  12. Slide 12: With adequate provision on the Balance Sheet

    … with adequate provision on the Balance Sheet Pre-Apr’21 book (7.7% of AUM) contributes 70% of GNPA Q3 FY23 Q2 FY23 Provisioning & Coverage AUM AUM % AUM ECL Provision Coverage % AUM ECL Provision Coverage (₹ Cr) (₹ Cr) Stage 1 6,390 93.25% 41 0.63% 5,190 89.76% 32 0.61% Current 6,311 92.10% 39 0.6

  13. Slide 13: Lender support continues to be strong

    Lender support continues to be strong ~98% growth in fund mobilization; 8 new lenders onboarded in Q3FY23 Total Borrowings (in ₹ Cr) +98% 2,138 1,080 691 738 308 155 79 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 • Marginal cost of borrowing stable at 12.66% for Q3FY23 vs. 12.64% in Q2FY23 • We

  14. Slide 14: Diversified borrowing profile; Capital Adequacy at ~39%

    Diversified borrowing profile; Capital Adequacy at ~39% Diversified Funding Mix Net-worth and Capital Adequacy (As on 31-Dec-22) Capital 42.4% 42.4% 46.8% 51.1% 47.9% 45.3% 39.1% Adequacy Capital infusion of Net worth (Rs. crs) ₹ 290 Cr 8% 3,088 2,961 2,817 2,867 2,743 2,763 2,733 39% ₹5,199 Cr 33%

  15. Slide 15: Financials showing a healthy movement (1/2)

    Financials showing a healthy movement (1/2) Total Income (₹ Cr) Net Interest Income (₹ Cr) Yield# (%) Cost of Borrowings (%) +21% +16% +200 bps 11.8% 254 21.5% 11.5% 375 10.8% 11.2% 310 219 19.5% 299 191 259 17.6% 162 16.4% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23 Q2FY23

  16. Slide 16: Financials showing a healthy movement (2/2)

    Financials showing a healthy movement (2/2) PPOP & PBT (₹ Cr) PAT (₹ Cr) +28% +29% 71 141 96 29 55 110 84 58 38 51 -301 Q4FY22 Q1FY23 Q2FY23 Q3FY23 -220 Q4FY22 Q1FY23 Q2FY23 Q3FY23 PPOP PBT ROA (%) ROE (%) +210 bps +80 bps 3.8% 4.5% 7.7% 9.8% 1.8% 4.1% -14.2% -29.8% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY2

  17. Slide 17: Consolidated Income Statement

    Consolidated Income Statement Particulars (₹ Cr) Q3 FY23 Q2 FY23 Q3 FY22 Revenue from Operations Interest income 337.7 276.5 328.5 Net gain on fair value changes 8.4 6.3 10.1 Other Income 8.5 14.9 7.5 Total income from operations 354.7 297.7 346.1 Non-operational Income 20.3 12.5 3.7 Total income 37

  18. Slide 18: Consolidated Balance Sheet

    Consolidated Balance Sheet Net-worth increased to ₹2,961 Cr ASSETS (₹ Cr) Dec 31, 2022 Mar 31, 2022 LIABILITIES & EQUITY (₹ Cr) Dec 31, 2022 Mar 31, 2022 Financial Liabilities Financial Assets Debt Securities 2,914.5 1,778.2 Cash and cash equivalents 1,024.6 727.2 Borrowings (Other than Debt Securit

  19. Slide 19: Annexure

    ‘~™ => rN Annexure

  20. Slide 20: Stable credit rating with comfortable liquidity position

    Stable credit rating with comfortable liquidity position Positive ALM^ (₹ Cr) Rating Instrument Rating Agency Rating Year Assets CRISIL/ A Stable/ Bank Facilities / NCD’s Sep 2022 2,560 Liabilites ICRA A- Stable 2,102 Bank Facilities / NCD’s/ MLD’s India-Ra A Stable Aug 2022 1,802 1,585 Bank Facilit

  21. Slide 21: Thank You

    Spandana Sphoorty Financial Limited ….Committed to low-income households THANK YOU Name/Title – Q2FY23 18 Years

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