Spandana Sphoorty Financial Limited · NSE:SPANDANA
Spandana Sphoorty Financial — Q2 FY23 Earnings Presentation
18 slides from Spandana Sphoorty Financial's earnings presentation, Oct 18, 2022
Slide 1: Stock exchange cover letter for investor presentation
Ref: SSFL/Stock Exchange/2022-23/094 Date: October 17, 2022 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
Slide 2: Spandana Sphoorty Financial Limited Q2 FY23 Investor Presentation
6SDQGDQD6SKRRUW\)LQDQFLDO/LPLWHG ͙͘ŽŵŵŝƚƚĞĚƚŽůŽǁͲŝŶĐŽŵĞŚŽƵƐĞŚŽůĚƐ YϮ&zϮϯͲ /ŶǀĞƐƚŽƌWƌĞƐĞŶƚĂƚŝŽŶ
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: FY23Q2: Summary
FY23Q2: Summary Rating changed during the Quarter Rating Watch a) India Rating : A Stable from Ratings Watch with Negative Implication b) Crisil : A Stable from Rating watch with developing implications Resolved c) ICRA : A- Stable from Rating watch with developing implications Onboarded 10 addi
Slide 5: Rating Revision by all rating agencies with Comfortable Liquidity Position
Rating Revision by all 3 rating agencies with Comfortable Liquidity Position Rating Positive ALM^ (Rs. crs) Rating Instrument Agency Rating Year Assets CRISIL/ A Stable/ Bank Facilities / NCD’s Sep 2022 Liabilites ICRA A- Stable 1,960 Bank Facilities / NCD’s/ MLD’s India-Ra A Stable Aug 2022 1,481 1
Slide 6: Renewed Lender Confidence. Momentum reflected in Fund Raise during Quarter
Renewed Lender Confidence. Momentum reflected in Fund Raise during Quarter 1,080 118 738 691 308 962 155 79 FY22Q1 FY22Q2 FY22Q3 FY22Q4 FY23Q1 FY23Q2 Existing Lender Relationships First Time Lenders 10 new (in FY23) Lenders Onboarded with 2 Marquee first time Lenders ϱ
Slide 7: Diversified Borrowing Profile supported by Capital Adequacy at ~45%
Diversified Borrowing Profile supported by Capital Adequacy at ~45% Diversified Funding Mix (As on 30-Sep-22) Net-worth and Capital Adequacy Capital 42.4% 42.4% 46.8% 51.1% 47.9% 45.3% Adequacyy Capital infusion Net worth (Rs. crs) of Rs.290 crs ϭϰй 3,088 ϯϯй 2,817 2,867 2,743 2,763 2,733 ϯϯй ϭй ϱй
Slide 8: Financial performance - upward movement exhibited
Financial performance - upward movement exhibited Total Income (Rs. crs) Net Interest Income (Rs. crs) Yield (%) Cost of Borrowings (%) +35.2% +310 bps -60 bps +20.1% 219 19.5% 11.8% 311 11.2% 259 162 16.4% Excluding interest reversal of 38 crs, the yield is 19% FY23Q1 FY23Q2 FY23Q1 FY23Q2 FY23Q1 FY
Slide 9: Disbursement Momentum Continues: 5.3% growth QOQ
Disbursement Momentum Continues : 5.3% growth QOQ 1,391 1,385 1,320 FY22Q4 FY23Q1 FY23Q2 (Rs. crs) ϴ
Slide 10: Along with New Member Acquisition. 46% loans in the quarter to new customers
..Along with New Member Acquisition. 46% loans in the quarter to new customers New members acquired (in ‘000) 000) Split of FY23Q2 Disbursements (loan count) 123 106 101 46% 54% New Member Loans Exisiting Member Loans FY22Q4 FY23Q1 FY23Q2 ϵ
Slide 11: Structural Increase in Better Quality Core Asset Book
Structural Increase in Better Quality Core Asset Book. Post April’21 Book now at 82% vs 48% in March’22 March 2022 June 2022 (Post write-off) September 2022 205 933 353 3% 15% 6% 847 15% 1,302 2,883 24% 48% 2,273 3,857 37% 70% 4,730 82% AUM - Rs. 6,089 crs AUM - Rs. 5,513 crs AUM - Rs. 5,782 crs Pos
Slide 12: With Stable Collection Efficiency Across All Buckets
… With Stable Collection Efficiency Across All Buckets… Sep-22 AUM 5,782 crs Collection Efficiency: Post Apr-21 Originated Book 96.4% 97.5% 97.5% 4,730 82% Q4FY22 Q1FY23 Q2FY23 CE (Excl. Arrears) 1,052 18% Collection Efficiency: Overall Book 92.2% 94.0% 93.3% Pre Apr-21 Originated Book Post Apr-21 O
Slide 13: Engagement with customers has led to reduction in the 1-90 Bucket
Engagement with customers has led to reduction in the 1-90 Bucket from 7.51% to 5.73% Mar-22 Jun-22 Sep-22 414.1 331.2 5.7% 873.3 14.3% 7.5% 85.4 79.7 156.5 2.6% 1.6% 1.4% 207.7 106.4 86.1 3.4% 1.9% 1.5% 8.4% 4.0% 2.9% 509.1 222.3 165.4 1-30 30-60 60-90 1-30 30-60 60-90 1-30 30-60 60-90 AuM of Rs. 6
Slide 14: Adequate Provisioning Buffer and Potential Upside from Write-off Recovery
Adequate Provisioning Buffer and Potential Upside from Write-off Recovery with high capital adequacy of 45.3% PAR 90+ FY23 Q1 FY23 Q2 53 Particulars (Rs. ECL ECL AUM % AUM Coverage AUM % AUM Coverage crs) Provision Provision 38 Stage 1 4,953 89.86% 32 0.65% 5,190 89.67% 32 0.62% Current 4,731 85.82%
Slide 15: Operational Performance Update – FY23 Q2
Operational Performance Update –FY23 Q2 Growth in Borrowers with New Member Acquisitions Stable Cohort of Branches (In lakhs) No of branches (#) +1.9% -0.2% 1,120 23.5 21.3 21.7 1,117 1,115 Mar-22 Jun-22 Sep-22 Mar-22 Jun-22 Sep-22 Investment behind Growth with Increase in Employees Improvement in A
Slide 16: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. crs) Q2FY23 Q1 FY23 Q2 FY22 FY22 Revenue from Operations Interest income 277.3 243.9 350.5 1,336.5 Commission and incentive income - - - 6.5 Net gain on fair value changes 6.3 4.0 31.1 78.2 Other Income 14.9 2.3 14.1 41.6 Total income from operat
Slide 17: Consolidated Balance Sheet – Net-worth of 2,867 Crs
Consolidated Balance Sheet – Net-worth of 2,867 Crs ASSETS (Rs. crs) Sep 30, 2022 Mar 31, 2022 LIABILITIES & EQUITY (Rs. crs) Sep 30, 2022 Mar 31, 2022 Financial Liabilities Financial Assets Debt Securities 1,813.5 1,778.2 Cash and cash equivalents 866.3 727.2 Borrowings (Other than Debt Securities)
Slide 18: Thank You
Company : Spandana Sphoorty Financial Limited CIN: L65929TG2003PLC040648 www.spandanasphoorty.com THANK YOU
Spandana Sphoorty Financial — Q2 FY23 Earnings Presentation on 6ix