Spandana Sphoorty Financial Limited · NSE:SPANDANA
Spandana Sphoorty Financial — Q4 FY2020 Earnings Presentation
38 slides from Spandana Sphoorty Financial's earnings presentation, Jun 3, 2020
Slide 1: Letter to stock exchanges on investor presentation
SPANDANA Ref: SSFljStock Exchangef2020-21/17 Date: June 03, 2020 To To BSE Limited, National Stock Exchange of India Limited, Department of Corporate Services Listing Department P. J. Towers, 25 th Floor, Exchange Plaza, C-1, Block G Dalal Street, Bandra Kurla Complex, Bandra (E) Mumbai - 400001 Mum
Slide 2: Spandana Sphoorty Financial Limited Investor Presentation
Spandana Sphoorty Financial Limited ….Committed to low-income households Investor Presentation 16 June 2020 Years
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: Performance Snapshot
1 Performance Snapshot 2 COVID-19 Business Update 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 5: Performance Snapshot
Performance Snapshot Net Worth Largest NBFC-MFI in terms of Profit Before Tax (PBT) & Profit After Tax (PAT) Presence in 18 Leverage (Rs. Crs.) States 1.15x 2,626 2nd Largest NBFC-MFI in terms of Market Capitalization Marginal Cost of GNPA / NNPA Capital Adequacy* Borrowing (FY20) 3rd Largest NBFC-M
Slide 6: Q4FY20 – Key Performance Highlights
Q4FY20 – Key Performance Highlights Disbursement (Rs. Crs) No. of Borrowers (In lakhs) No. of Branches No. of Employees +67% +4% +9% +24% 2,324 25.7 1,010 8,224 24.6 925 6,655 Operating 1,390 Metrics Q4FY19 Q4FY20 Mar-19 Mar-20 Mar-19 Mar-20 Mar-19 Mar-20 Total Income (Rs. Crs) Net Interest Income (
Slide 7: COVID-19 Business Update
1 Performance Snapshot 2 COVID-19 Business Update 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 8: Seasoned and Resilient Business Model
Seasoned and Resilient Business Model AP crisis: 2010 Spandana was the only MFI to • Kept on-ground presence in AP by keeping collect ~44% of the total AP branches open and engaging with portfolio compared to other customers MFIs which didn’t collect more than 25% Demonetization: 2016 Spandana got b
Slide 9: Covid-19 Business Update
Covid-19 Business Update ✓ Following the Central Government’s announcement of a complete lockdown from 24th March 2020 onwards, Spandana closed down all branch and head office operations, suspending collections and other operations, in compliance with the order, and to ensure the health and safety o
Slide 10: Break-up of Provisions
Break-up of Provisions Particulars (Rs. Crs) Q1 Q2 Q3 Q4 FY20 Provision in the normal course of business 23 18 25 30 96 Impact of non old-AP portfolio write-off* - 3 16 29 48 Provision and write-off related to Covid and others - - - 129 129 Total Impairment on Financial Instruments (as per P&L) 23 2
Slide 11: Key Operating Metrics
1 Performance Snapshot 2 COVID-19 Business Update 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 12: Operational Summary
Operational Summary AUM (Rs. Crs) Disbursements (Rs. Crs.) Borrowers (In lakhs) CAGR 8,004 +35% CAGR 6,829 CAGR 24.6 25.7 +74% +57% 4,372 4,969 15.9 3,166 3,858 10.6 2,059 1,297 Mar-17 Mar-18 Mar-19 Mar-20 FY17 FY18 FY19 FY20 Mar-17 Mar-18 Mar-19 Mar-20 No. of Branches No. of Loan Officers No. of Em
Slide 13: Rising Branch and Employee Productivity
Rising Branch and Employee Productivity Borrowers/Branch (#) AUM/Borrower (Rs.) Borrowers/Loan Officer (#) • 1st cycle loan outstanding – Rs. 22k; Excl. Trainees Incl. Trainees CAGR +9% • Subsequent cycle loan 2,658 outstanding – Rs. 33k 26,610 700 2,541 577 2,285 534 589 1,948 19,970 17,780 667 12,
Slide 14: Diversified Geographical Presence
Diversified Geographical Presence Well dispersed district level exposure Top States By Branch Network Well spread AUM Mix ensures low impact from region-specific issues Top States Number of Branches Madhya Pradesh 158 District wise Concentration Orissa 148 Karnataka 130 < 0.5% 211 Maharashtra 122 An
Slide 15: Key Financial Metrics
1 Performance Snapshot 2 COVID-19 Business Update 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 16: Financial Performance
Financial Performance Total Income (Rs. Crs) Net Interest Income (Rs. Crs) Yield (%) Cost of Borrowings (%) +288% +310% -550 bps -840 bps 1,470 906 29.5% 20.3% 25.7% 26.2% 24.0% 1,049 623 14.2% 13.5% 11.9% 588 341 379 221 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY2
Slide 17: Profit & Loss Statement
Profit & Loss Statement Particulars Q4 FY20 Q4 FY19 Y-o-Y Q3 FY20 Q-o-Q* FY20 FY19 Y-o-Y Revenue from Operations Interest and Fee Income 297.6 256.8 292.0 1,169.2 997.9 Fees & commission 17.4 3.6 8.8 37.1 15.0 Net gain on fair value changes 108.6 3.8 46.8 218.5 26.7 Other Operating Income 5.1 1.0 2.
Slide 18: Balance Sheet
Balance Sheet ASSETS (Rs. Crs.) Mar 31, 2020 Mar 31, 2019 LIABILITIES & EQUITY (Rs. Crs.) Mar 31, 2020 Mar 31, 2019 Financial Assets Financial Liabilities Debt Securities 777.6 1,372.0 Cash and cash equivalents 59.6 148.6 Borrowings (Other than Debt Securities) 2,227.3 1,575.5 Money Market instrumen
Slide 19: Diversified Borrowing Profile
Diversified Borrowing Profile Borrowings (Rs. Crs) Diversified Funding Mix (As on Mar-20) Improving Credit Rating (3 upgrades by ICRA in two years) 2,968 3,025 4% Private Banks 2,331 2% A- 7% Public Sector Banks Mar-19* 38% (Stable) Small Finance Banks 933 NBFCs 49% FPIs BBB+ Mar-17 Mar-18 Mar-19 Ma
Slide 20: Comfortable Liquidity Position
Comfortable Liquidity Position Particulars (Rs. Crs) Apr-20 (Actual) May-20 (Actual) Jun-20 (Projected) Opening Cash & Equivalents 547 406 400 Loan collections [Principal & Interest] 14 132 300 ✓ All term loan and NCD dues in April were Fresh Borrowings 300 - 550 repaid to all lenders, including tho
Slide 21: Spandana at a Glance
1 Performance Snapshot 2 COVID-19 Business Update 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 22: Company Overview
Company Overview ▪ Founded by Padmaja Reddy who has over 24 years of experience in development and microfinance sector ▪ Operating as an NBFC since 2004 and NBFC-MFI since 2015 ▪ By March 2010, we were the 2nd largest MFI in India in terms of AUM and borrowers and were one of the most profitable pla
Slide 23: Focused on Rural Markets
Focused on Rural Markets MFIs - Urban vs. Rural AUM Split* MFIs - Urban vs. Rural Industry Portfolio Quality* 4.15% 5% 2.37% 46% Spandana MFI Industry 54% (Mar 31, 2020) 0.86% 0.99% 0.94% 1.00% 95% 1 - 30 31-180 180+ Rural Urban Rural Urban ▪ Close to 68% of India’s population live in rural areas# ▪
Slide 24: Our Products
Our Products Product Name Purpose Interest Rate (%) Tenor Ticket Size (Rs.) Core Product: 98% of AUM • Abhilasha stands for “Aspiration” • This unique loan is designed especially for low-income households who aspire to improve their financial well-being Abhilasha 21.87% to 24% 1 to 2 Years 25,000 to
Slide 25: Efficient Business Process
Efficient Business Process 2 • Scanned Documents uploaded to the app directly • Data is entered directly into the app by the loan officer 1 and key data entry is 3 • Group Formation with 8 to 10 automated members • Group training, house visits, • KYC Document collection credit appraisal, group throu
Slide 26: Niche Business Model
Niche Business Model Business Model Processes HR policies ▪ Standardized systems and a front-end ▪ Group size of 8 to 10 women interface that gives real time ▪ Strict employee transfer policy with information on demand and collections adherence to operational risk control ▪ Loans given under Joint L
Slide 27: Learnings from Industry Cycles
1 Performance Snapshot 2 COVID-19 Business Update 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 28: Implemented Learning from AP Crisis
Implemented Learning from AP Crisis Diversified Geographical Presence No. of States and UT’s No. of Districts Top State Contribution Top 3 States Contribution present 68% 42% +6 18 +88 280 53% reduction 81% reduction 12 192 47% 17% Sep-10 Mar-20 Sep-10 Mar-20 Sep-10 Mar-20 Sep-10 Mar-20 Reduced Leve
Slide 29: Strong Performance since CDR Exit
Strong Performance since CDR Exit 3rd Largest MFI Rs. Crs. CDR Exit in the Country* March-17 3 Yrs Mar-20 5.3x Gross AUM (excl. old AP) 1,297 6,829 Net worth# 928 2.8x 2,626 Gross PAR 90+ 89@ Reduced by 80% 18 Profit before Tax 46 # 13x 618 Lenders 3 10x 32 Credit rating^ NA 3 Upgrades A - (Stable)
Slide 30: Key Takeaways
Key Takeaways Largest NBFC-MFI (PBT)* & (PAT) 2nd largest NBFC-MFI (Market cap)* 3rd Largest NBFC-MFI (AUM)* Rural High Geographic Well Capitalized Low Operating Focus Diversity Expenses 17 states 1 Union Territory 52.9% Capital Adequacy 280 districts 3.9% Opex ratio 95% portfolio in Ratio 1,010 bra
Slide 31: Annexure
1 Performance Snapshot 2 COVID-19 Business Update 3 Key Operating Metrics 4 Key Financial Metrics 5 Spandana at a Glance 6 Learnings from Industry Cycles 7 Annexure All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with eff
Slide 32: IPO Details
IPO Details Face Value Rs.10 Per Share Issue Price Rs. 856 Per Share Listed on NSE and BSE on 19th August 2019 Particulars Shares Rs. Crores Fresh Issue 4,543,385 389* Offer For Sale 9,356,725 801 Total 13,900,110 1,190 Shareholding Structure (%) Particulars Pre IPO Post IPO Promoter Holding 78.71%
Slide 33: Experienced Board of Directors
Experienced Board of Directors Deepak Calian Vaidya | Chairman & Independent Director Sunish Sharma | Nominee Director, Kedaara Capital A fellow of ICA in England and Wales since 1979. Served as a BoD of 01 Capricon Securities, Arc Advisory Services, Apollo Gleneagles Hospital, 06 He is the Managing
Slide 34: Strengthened Senior Management Team
Strengthened Senior Management Team • Satish joins us with over 20 years of finance and accounting experience across industries • He has previously worked with Call Health Services (served as CFO), HSBC Global, Sutherland Global, Coca Cola and ICICI Bank • Over the years he has received several awar
Slide 35: Historical Profit & Loss Statement
Historical Profit & Loss Statement Particulars (Rs. Crs.) 31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17 Interest Income 1,169 998 573 371 Net gain on fair value changes 37 15 4 4 Commission Income 219 27 4 2 Others 11 4 6 1 Total Revenue from operations 1,435 1,043 587 377 Other income 34 5 0 2 Total Inco
Slide 36: Historical Balance Sheet
Historical Balance Sheet March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, ASSETS (Rs. Crs.) LIABILITIES & EQUITY (Rs. Crs.) 2020 2019 2018 2017 2020 2019 2018 2017 Financial Assets Financial Liabilities Debt Securities 778 1,372 1,015 - Cash and cash equivalents 60 149
Slide 37: Glossary
Glossary Sr. No. Particulars Formula 1 Networth Shareholders Fund + Other Equity excluding Non controlling interest 2 Capital Adequacy Tier I ratio + Tier II ratio 3 Leverage Closing On Balance sheet Borrowings / Closing Net worth 4 Marginal Cost of Borrowing (Borrowings availed during the period *
Slide 38: Thank You
Contact Information Company : Investor Relations Advisor : Spandana Sphoorty Financial Limited Strategic Growth Advisors Pvt. Ltd. CIN: L65929TG2003PLC040648 CIN: U74140MH2010PTC204285 Mr. Satish Kottakota Ms. Payal Dave / Ms. Neha Shroff Chief Financial Officer E: payal.dave@sgapl.net / neha.shroff
Spandana Sphoorty Financial — Q4 FY2020 Earnings Presentation on 6ix