Spandana Sphoorty Financials Ltd
Spandana Sphoorty Financial Limited (SSFL) was incorporated in 2003 as a non-banking financial company (NBFC) and it took over the microfinance operations of Spandana, a non-governmental organisation started by Ms. Padmaja Reddy in 1998. The company was classified as an NBFC-microfinance institution (NBFC-MFI) in 2015. Its share listed in 2019. In last 1 year, its equity price has gained 83%.
Shareholding Pattern- Private equity fund Kedaara Capital-backed Kangchenjunga Ltd is the biggest shareholder in the microfinance institution with a stake of 41.28% at the end of March 2023. Ms Padmaja Reddy and her husband hold 15.22% in the company. Institutional shareholding stood at 28.72%.
Credit Rating- Spandana Sphoorty Financials Ltd has been rated as A/stable by CRISIL and India Rating while A-/stable by ICRA.
|
Rs billion |
Q1FY24 |
Q1FY23 |
Q4FY23 |
|
Net Interest Income |
3.28 |
1.62 |
3.84 |
|
PAT |
1.19 |
-2.2 |
1.06 |
|
Net Worth |
32.28 |
28.17 |
30.99 |
|
AUM |
88.48 |
55.13 |
85.11 |
|
GNPA (%) |
1.63% |
6.69% |
2.07% |
|
NNPA (%) |
0.49% |
3.24% |
0.64% |
|
NIM |
14.20% |
9.90% |
13.90% |
|
CRAR |
37.60% |
28.17% |
36.30% |
|
Rs billion |
FY22 |
FY23 |
Growth |
|
Interest Income |
13.36 |
12.77 |
-4.42% |
|
PAT |
0.7 |
0.12 |
-82.86% |
|
Net Worth |
30.9 |
30.1 |
-2.59% |
|
AUM |
65.81 |
85.11 |
29.33% |
|
GNPA (%) |
18.7 |
2.07 | |
|
NNPA (%) |
10.5 |
0.64 |
|
|
CRAR (%) |
50 |
36.9 |
|
Operating Performance – During Q1FY24, its net interest income rose by 102% on yearly basis while net profit stood at Rs 1.19 billion as compared to loss made during Q1FY23. Net interest margin stood robust at 14.20% during Q1FY24.
Improvement in asset quality- During Q1FY24, its gross NPA improved to 1.63% from 2.07% as of Q4FY23.
During FY23, the company’s asset quality has improved significantly as its gross NPA stood at 2.07% as of FY23 as compared to 18.7% as of FY22. In Q1 FY2023, the company undertook a substantial write-off of Rs. 7.02 billion (11.3% of standalone AUM before write-off) of stressed assets.
Redemption of bonds issued by Spandana Spoorty Financials-
|
Year |
Redemption amount (Rs billion) |
|
2023 |
6.26 |
|
2024 |
2.25 |
Liquidity-As of 31st March 2023, its cash and bank balance stood at Rs 10 billion.