Spandana Sphoorty Financial Limited · NSE:SPANDANA

Spandana Sphoorty Financial — Q4 FY24 Earnings Presentation

27 slides from Spandana Sphoorty Financial's earnings presentation, Apr 29, 2024

  1. Slide 1: Stock exchange filing cover letter

    Ref: SSFL/Stock Exchange/2024-25/020 Date: April 29, 2024 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 – 40

  2. Slide 2: Q4 FY24 & FY24 Investor Presentation

    Invested in Bharat! Spandana Sphoorty Financial Limited Q4 FY24 & FY24 Investor Presentation Sanjhi Art

  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: FY24 - Highest ever full year PAT of ₹501 Cr

    FY24 - Highest ever full year PAT of ₹501 Cr AUM up 41%; GNPA down 57 bps; NII up 59 %, PPOP up 70% FY24 FY23 YoY (%) Customer Addition (L) 13.9 8.8 59% Disbursement (₹ Cr) 10,688 8,125 32% AUM (₹ Cr) 11,973 8,511 41% Funds raised (₹ Cr) 10,441 5,775 81% Income (₹ Cr) 2,534 1,477 72% Net Interest In

  5. Slide 5: Q4FY24 – YoY Disbursement up 30%, PAT up 22%, GNPA at 1.5%

    Q4FY24 – YoY Disbursement up 30%, PAT up 22%, GNPA at 1.5% Provision Coverage increased to ~80% Acquired 4.4 L Customers in Q4FY24 Consolidating lender relationships Customer Customer Lending Funds raised Addition count partners 4.4 L 33.2 L 60 ₹3,428 Cr YoY QoQ YoY QoQ YoY QoQ +3% 30% +47% 12% +43%

  6. Slide 6: Ratings update – Received A+ Stable rating from CARE

    Ratings update – Received A+ Stable rating from CARE Highest rating received so far by SSFL Spandana Sphoorty Financial Ltd - Received A+ / Stable rating from CARE Rating / Outlook Rating / Outlook Rating Agency Rating Instrument Change (Current) (31-Dec-23) Bank Facilities / NCD’s A+ / Stable CARE

  7. Slide 7: 47% YoY growth in customer base

    47% YoY growth in customer base Accelerated branch expansion completed; focus on improving efficiencies No. of customers (in L) Branch count* 33.2 1,529 1,642 1,800 29.6 1,457 1,600 27.0 1,303 429 1,182 1,400 24.1 323 375 22.6 64 185 1,200 1,000 800 1,118 1,118 1,134 1,154 1,213 600 400 200 0 Mar-23

  8. Slide 8: Weekly branches accounted for 21% of Disbursement in Q4FY24

    Weekly branches accounted for 21% of Disbursement in Q4FY24 Consistently delivering Net CE of over 99% Weekly branch Weekly Branch count Disbursement (₹ Cr) 429 832 375 323 407 185 183 64 12 29 Q4 Q1 Q2 Q3 Q4 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 FY23 FY24 FY24 FY24 FY24 Weekly branches Weekly branches

  9. Slide 9: 13.9 Lac new customers added in FY24, up 59% over FY23

    13.9 Lac new customers added in FY24, up 59% over FY23 Improving geographical diversification - ~50% of Q4FY24 new customers from 6 focus states 50% customer acquisition from 6 focus states New customers acquired (in ‘000) in Q4FY24 QoQ YoY YoY +30% +3% +59% 1. Bihar 1,391 Other 2. Uttar Pradesh Sta

  10. Slide 10: AUM at ₹11,973 Cr, ~41% YoY growth

    AUM at ₹11,973 Cr, ~41% YoY growth Highest ever quarterly disbursement of ₹3,970 Cr, up +56% QoQ AUM (₹ Cr) - +41% YoY & +15% QoQ growth Disbursement (₹ Cr) +117% QoQ YoY YoY +56% +30% +32% 11,973 3,970 10,688 +41% 10,404 3,054 8,125 9,784 8,511 8,848 2,543 5,513 Jun-22 Mar-23 Jun-23 Sep-23 Dec-23 M

  11. Slide 11: Highest ever funds mobilized during the year; diversified lender profile

    Highest ever funds mobilized during the year; diversified lender profile 81% YoY growth in funds mobilized Incremental borrowing (in ₹ Cr) Cost of borrowing QoQ YoY YoY +50% +43% +81% 12.5% 12.5% 12.4% 12.4% 12.3% 3,428 11.9% 12.0% 10,441 11.8% 11.7% 11.7% 12.6% 12.3% 12.3% 12.2% 11.9% Q4 Q1 Q2 Q3 Q

  12. Slide 12: Portfolio quality: 1-90 dpd book at 2.85%

    Portfolio quality: 1-90 book at 2.85%, 1 – 90 dpd 1 – 30 dpd 8.36% 14.40% 7.51% 4.03% 5.73% 2.86% 2.59% 2.85% 1.20% 1.29% 1.54% 1.36% 2.04% 2.49% 1.16% 0.58% 0.55% 0.85% Mar Jun Sep Dec Mar Jun Sep Dec Mar Mar Jun Sep Dec Mar Jun Sep Dec Mar 22 22 22 22 23 23 23 23 24 22 22 22 22 23 23 23 23 24 31 –

  13. Slide 13: GNPA improves to 1.50%; NNPA improves to 0.30%

    GNPA improves to 1.50%; NNPA improves to 0.30% 18.65% 10.46% 6.69% 7.37% 5.31% 3.84% 2.07% 3.24% 2.52% 1.63% 1.61% 1.50% 1.40% 0.64% 0.49% 0.42% 0.48% 0.30% Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 GNPA NNPA 12

  14. Slide 14: PCR increased to 79.75% from 70.45% end of Q3 FY24

    PCR increased to 79.75% from 70.45% end of Q3 FY24 31-Mar-24 31-Dec-23 Provisioning & Loans ECL Loans ECL Coverage % of Loans % of Loans Outstanding Provision Coverage Outstanding Provision Coverage Outstanding Outstanding (₹ Cr) (₹ Cr) (₹ Cr) (₹ Cr) Stage 1 10,942 96.94% 95 0.87% 9,365 97.10% 97 1.

  15. Slide 15: FY24 Income up 72%, NII up 59%, PPOP up 70%, Highest ever PAT

    FY24 Income up 72%, NII up 59%, PPOP up 70%, Highest ever PAT of ₹501 Cr In ₹ Cr Income* Net Interest Income QoQ YoY YoY QoQ YoY YoY +8% +33% +72% +23% +41% +59% 2,534 1,289 657 710 1,477 810 533 378 309 268 Q3 Q4 Q4 FY23 FY24 Q3 Q4 Q4 FY23 FY24 FY24 FY24 FY23 FY24 FY24 FY23 PPOP* PAT* QoQ YoY YoY Q

  16. Slide 16: FY24 Yield at 24.2%; NIM at 14.1%

    FY24 Yield at 24.2%; NIM at 14.1% Cost of borrowing down to 11.7% in Q4FY24 Yield (%) Cost of Borrowing (%) QoQ YoY YoY QoQ YoY YoY +11 bps +106 bps +383 bps -53 bps -67 bps +58 bps 24.1% 24.2% 24.2% 23.1% 12.3% 12.4% 12.2% 11.7% 11.7% 20.4% Q3 Q4 Q4 FY23 FY24 Q3 Q4 Q4 FY23 FY24 FY24 FY24 FY23 FY24

  17. Slide 17: FY24 ROA on average loans at 5.5%, ROE at 14.9%

    FY24 ROA on average loans at 5.5%, ROE at 14.9% Cost to income^ (%) ROA (Total Assets)* (%) QoQ YoY YoY QoQ YoY YoY +81 bps +752 bps -402 bps -29 bps -72 bps +435 bps 43.7% 46.9% 4.9% 4.5% 42.9% 42.8% 4.4% 36.2% 4.1% 0.2% Q3 Q4 Q4 FY23 FY24 Q3 Q4 Q4 FY23 FY24 FY24 FY24 FY23 FY24 FY24 FY23 ROA (On bo

  18. Slide 18: Consolidated Net-worth increases to ₹3,645 Cr, CRAR at 31.3%

    Consolidated Net-worth increases to ₹3,645 Cr, CRAR at 31.3% ₹100 Cr growth capital invested in subsidiary Criss Financial Ltd (CFL) Gearing improved to 2.59x on SSFL Standalone Net-worth & CRAR consolidated basis 36.9% 38.0% 37.0% 35.9% 4000 3 5000 32.0% 35.00% 3,645 3,286 3,414 3,556 30.00% 3,164

  19. Slide 19: Consolidated Income Statement

    Consolidated Income Statement Particulars (₹ Cr) Q4 FY24 Q3 FY24 Q4 FY23 QoQ YoY FY24 FY23 YoY Revenue from Operations Interest income on loans 628 559 417 12% 51% 2,216 1,268 75% Net gain on fair value changes 34 56 66 (39)% (48)% 162 85 92% Other Income 14 11 16 27% (9)% 45 48 (6)% Total income fr

  20. Slide 20: Consolidated Balance Sheet

    Consolidated Balance Sheet ASSETS (₹ Cr) Mar 31, 2024 Mar 31, 2023 LIABILITIES & EQUITY (₹ Cr) Mar 31, 2024 Mar 31, 2023 Financial Liabilities Financial Assets Debt Securities 4,064 3,369 Cash and bank balances 1,894 1,005 Borrowings (Other than Debt Securities) 5,340 2,686 Loan Portfolio 11,014 7,7

  21. Slide 21: Annexure

    Annexure 20

  22. Slide 22: Positive ALM across maturity buckets

    Positive ALM across maturity buckets Positive ALM (₹ Cr)* Maturity profile* (in months) 3,608 3,523 3,556 12.1 12.1 2,965 2,565 2,170 1,935 1,497 913 653 647 659 671 9.6 9.6 296 31 50 upto 1m 1m to 2m 2m to 3m 3m to 6m 6m to 12m 1Y to 3Y 3Y to 5Y Over 5Y Mar-24 Dec-23 Assets Liabilites Avg. residual

  23. Slide 23: Well diversified presence

    Well diversified presence AUM concentration* - ~49% from top 4 States District level concentration* % of AUM Largest 1.7% State Mar-24 Mar-23 Mar-22 Top 5 7.5% Odisha 14% 15% 17% Madhya Pradesh 13% 17% 19% Top 10 12.7% Bihar 12% 8% 6% Karnataka 10% 11% 12% Top 20 21.5% Andhra Pradesh 10% 11% 8% Othe

  24. Slide 24: Metrics over the years

    Metrics over the years AUM (₹ Cr) Disbursement (₹ Cr) GNPA (%) & NNPA (%) 10,688 18.7% 11,973 8,004 8,125 8,157 8,511 6,829 6,426 6,581 10.5% 3,373 3.1% 2.1% 0.4%0.1% 1.4% 1.5% 0.6% 0.3% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 GNPA (%) NNPA (%) Net Interest Income

  25. Slide 25: Accelerated growth delivered over last year

    Accelerated growth delivered over last year Customers (in L) Employees Customers / Branch & LO * 33.2 14,243 2,541 3000 850 2,324 750 25.7 24.5 2500 2,097 1,914 2,021 23.5 22.6^ 10,016 2000 650 550 8,224 8,644 8,763 1500 590 450 350 1000 432 382 250 343 344 150 500 50 0 -50 FY20 FY21 FY22 FY23 FY24

  26. Slide 26: Glossary

    Glossary Key Ratio Abbreviation Definition 1 Portfolio Yield Yield Interest income divided by average monthly loan outstanding 2 Cost of borrowing COB Interest expenses divided by average monthly borrowing outstanding 3 Marginal COB (XIRR) Multiplication of borrowing availed during the period and co

  27. Slide 27: Thank you!

    Thank you! Investor Relations Strategic Growth Advisors Pvt. Ltd Abhishek Shah Spandana Sphoorty Financial Limited +91 99306 51660

Spandana Sphoorty Financial — Q4 FY24 Earnings Presentation on 6ix