Spandana Sphoorty Financial Limited · NSE:SPANDANA

Spandana Sphoorty Financial — Q4 FY23 Earnings Presentation

20 slides from Spandana Sphoorty Financial's earnings presentation, May 2, 2023

  1. Slide 1: Stock exchange covering letter

    Ref: SSFL/Stock Exchange/2023-24/025 Date: May 02, 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 – 40005

  2. Slide 2: Q4 FY23 & FY23 Investor Presentation

    Spandana Sphoorty Financial Limited ….Committed to low-income households 18 Q4 FY23 & FY23 Investor Presentation 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: Q4 FY23 & FY 2023 Business Performance

    Q4 FY23 & FY 2023 Business Performance

  5. Slide 5: Q4 FY23 key highlights

    QOQ - AUM up 24%, Client Addition up 95%, NNPA at 0.64%, PAT increased by 48% YoY- AUM up 29%, Client Addition up 294%, NNPA at 0.64%, PAT increased by 269% Growth in line with expectations Healthy asset quality Client Addition Disbursement AUM 1 – 90 DpD GNPA NNPA 4.3 L ₹3,054 Cr ₹8,511 Cr 1.54% 2.

  6. Slide 6: 112 new branches added; positive momentum across key operational vectors

    112 new branches added; Positive momentum across key operational vectors No. of borrowers AUM per branch Borrower count including written-off borrowers (in L) (In ₹ Cr) 23.5 23.9 24.0 25.7 28.6 6.9 Borrower count (in L) +14% 23.5 21.3 21.7 22.4 22.6 6.1 87% Rural 5.9 13% Urban 5.5 5.3 Mar-22 Jun-22

  7. Slide 7: New member acquisition driving growth

    New member acquisition driving growth 95% growth over Q3; 50% loans to new members in FY23 New members acquired (in ‘000) 427 Focus States contributed 29% of Q4 Member Acquisition +95% 219 1. Rajasthan +77% 7 2. Uttar Pradesh 106 123 Focus 3. Bihar 101 States 4. West Bengal 29% 5. Haryana 6. Tamil N

  8. Slide 8: Robust momentum in disbursement & growth in AUM

    Robust momentum in disbursement & growth in AUM ~29% increase in disbursement; AUM up by 24% QoQ & 29% YoY Disbursement (in ₹ Cr) AUM (in ₹ Cr) 3,054 8,511 +29% 2,361 +24% +70% 6,852 1,385 1,320 1,391 6,581 +19% 5,782 5,513 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22^^ Q1FY23* Q2FY23 Q3FY23^ Q4FY23# 8

  9. Slide 9: Well diversified lender base

    Well diversified lender base 12% growth in fund mobilization; 8 new lenders added in Q4 5,775 Total Borrowings (in ₹ Cr) +208% +12% 2,402 2,138 1,875 +98% 1,080 308 155 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY22 FY23 Marginal cost of borrowing stable at 12.55% for Q4FY23 vs. 12.66% in Q3FY23; Weighted

  10. Slide 10: Improvement in current book from 92.1% to 96.6%

    Improvement in current book from 92.1% to 96.6% Collection efficiency continues to improve AUM & Current Book Collection Efficiency Pre-Apr-21 52% 30% 18% 8% 2% (% of AUM) 106.1% 24% 8,511 105.0% 101.3% 102.1% 102.5% 8,500 100.0% 96.6% 97.6% 8,000 94.0% 93.3% 94.5% 92.1% 95.0% 7,500 90.0% 86.9% 85.8

  11. Slide 11: Consistent improvement in (1 to 90) book

    Consistent improvement in (1 to 90) book… 1 to 90 book down from 2.6% to 1.5% (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% 1.5% 0.6% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 31 to 60 DPD 61 to 90 DPD 3.4% 2.6% 1.6% 1.9% 1.4% 1.5% 0.8% 0.6% 0.5%

  12. Slide 12: Accompanied by GNPA & NNPA reduction

    … accompanied by GNPA & NNPA reduction… 18.7% 10.5% 7.4% 6.7% 45% of GNPA is from Pre- 5.3% April’21 book (2% of AUM) 3.8% 3.2% 2.5% 2.07% 0.64% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 GNPA NNPA 11

  13. Slide 13: PCR at 70% on unsecured portfolio

    … and PCR at 70% on unsecured portfolio PCR at 69.1% at consolidated level (due to lower provisioning in secured portfolio) Q4 FY23 Q3 FY23 Provisioning & Loans ECL Loan ECL Coverage % of Loans % of Loan Outstanding Provision Coverage Outstanding Provision Coverage Outstanding Outstanding (₹ Cr)^ (₹

  14. Slide 14: 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 (%) +42% 533 +51% 384 +168 bps 22.8% 12.4% 11.8% 21.2% 10.8% 11.5% 375 11.2% 254 19.5% 299 310 219 259 191 162 17.6% 16.4% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q

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

    Financials showing a healthy movement (2/2) PPOP & PBT (₹ Cr) PAT (₹ Cr) +48% +85% 261 106 71 55 141 96 139 29 110 84 58 38 51 +44% -301 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 -220 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 PPOP PBT ROA (%) ROE (%) +132 bps 5.9% 3.8% 4.5% +433 bps 1.8% 14.1% 7.7% 9.8% 4.1% -14.

  16. Slide 16: Ready to pursue growth agenda as operating vectors stabilized

    Ready to pursue growth agenda as operating vectors stabilized (Revenue, Credit Cost, Provisioning) Total Income (₹ Cr) Operating Cost (₹ Cr) Finance Cost (₹ Cr) 1,480 1,477 +26% 457 540 -15% 362 458 FY22 FY23 FY22 FY23 FY22 FY23 Average AUM reduction of 13% and income reversal of Opex growth in-line

  17. Slide 17: Consolidated Income Statement

    Consolidated Income Statement Particulars (₹ Cr) Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Revenue from Operations Interest income 419.3 337.7 260.8 1,277.5 1,336.5 Net gain on fair value changes 65.7 8.4 8.3 84.5 78.2 Other Income 13.1 8.5 17.7 38.7 48.0 Total income from operations 498.1 354.7 286.8 1,400

  18. Slide 18: Consolidated Balance Sheet

    Consolidated Balance Sheet Net-worth increased to ₹3,099 Cr ASSETS (₹ Cr) Mar 31, 2023 Mar 31, 2022 LIABILITIES & EQUITY (₹ Cr) Mar 31, 2023 Mar 31, 2022 Financial Assets Financial Liabilities Debt Securities 3,368.8 1,778.2 Cash and bank balances 1,004.5 1,202.3 Borrowings (Other than Debt Securiti

  19. Slide 19: Rating outlook revision driven by improved performance

    Rating outlook revision driven by improved performance SSFL rating outlook revised by ICRA to “Positive” from “Stable” during the quarter CFL rating outlook revised by ICRA to “Positive” from “Stable” during the quarter CFL received a rating of BBB+/ Stable from India Ratings in March 2023 Positive

  20. Slide 20: Thank You

    Spandana Sphoorty Financial Limited ….Committed to low-income households THANK YOU 18 Years

Spandana Sphoorty Financial — Q4 FY23 Earnings Presentation on 6ix