Spandana Sphoorty Financial Limited has informed the Exchange about Investor Presentation on the unaudited financial results of the Company for the quarter ended September 30, 2022
Ref: SSFL/Stock Exchange/2022-23/094
Date: October 17, 2022
To BSE Limited, Department of Corporate Services P. J. Towers, 25th Floor, Dalal Street, Mumbai – 400001 Scrip Code: 542759
Dear Sir/Madam,
To National Stock Exchange of India Limited, Listing Department Exchange Plaza, C-1, Block G BandraKurla Complex, Bandra (E) Mumbai – 400051 Symbol: SPANDANA
Sub: Investor presentation on the unaudited financial results of the Company for the quarter ended September 30, 2022
Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 please find enclosed herewith a copy of Investor Presentation of the Company on the unaudited financial results for the quarter ended September 30, 2022.
We request you to take the above information on record.
Thanking you.
Your Sincerely, For Spandana Sphoorty Financial Limited Ramesh Periasamy
Digitally signed by Ramesh Periasamy Date: 2022.10.17 16:49:21 +05'30'
Ramesh Periasamy Company Secretary and Compliance Officer
Encl: as above
Spandana Sphoorty Financial Limited CIN - L65929TG2003PLC040648 Galaxy, Wing B, 16th Floor, Plot No.1, Sy No 83/1, Hyderabad Knowledge City, TSIIC, Raidurg Panmaktha, Hyderabad, Rangareddi TG 500081 IN Ph: +9140-45474750 | contact@spandanasphoorty.com | www.spandanasphoorty.com
(cid:54)(cid:83)(cid:68)(cid:81)(cid:71)(cid:68)(cid:81)(cid:68)(cid:3)(cid:54)(cid:83)(cid:75)(cid:82)(cid:82)(cid:85)(cid:87)(cid:92)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:47)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)
(cid:857)(cid:856)(cid:18)(cid:381)(cid:373)(cid:373)(cid:349)(cid:410)(cid:410)(cid:286)(cid:282)(cid:3)(cid:410)(cid:381)(cid:3)(cid:367)(cid:381)(cid:449)(cid:882)(cid:349)(cid:374)(cid:272)(cid:381)(cid:373)(cid:286)(cid:3)(cid:346)(cid:381)(cid:437)(cid:400)(cid:286)(cid:346)(cid:381)(cid:367)(cid:282)(cid:400)
(cid:89)(cid:1006)(cid:3)(cid:38)(cid:122)(cid:1006)(cid:1007)(cid:3)(cid:882) (cid:47)(cid:374)(cid:448)(cid:286)(cid:400)(cid:410)(cid:381)(cid:396)(cid:3)(cid:87)(cid:396)(cid:286)(cid:400)(cid:286)(cid:374)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)
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 for any securities,
and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will
be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no
representation or warranty, express or implied, whatsoever, and no reliance shall be placed on,
the truth, accuracy, completeness,
fairness and
reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may
consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are
individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of
the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the
company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and
advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The
Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this
Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements
and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party
statements and projections.
(cid:1006)
FY23Q2: Summary
Rating Watch
Resolved
(cid:131) Rating changed during the Quarter
a)
India Rating : A Stable from Ratings Watch with Negative Implication
b) Crisil : A Stable from Rating watch with developing implications
c)
ICRA : A- Stable from Rating watch with developing implications
Renewed Lender Confidence
(cid:131) Onboarded 10 additional lenders, 2 new first time marquee lenders
(cid:131) Borrowed Rs.1,080 crs during the quarter vs. Rs.155 crs in FY23Q1.
(cid:131) Marginal cost of borrowings has decreased from 14% in FY22Q4 to 13.1% in FY23Q1. This has further decreased to 12.64% in FY23Q2
(cid:131) Banks and capital market mix is 58:42
(cid:131) Comfortable liquidity position with Rs. 964 crs cash balance as on September 30, 2022
Financial Performance
(cid:131) Strong growth in all financial metrics: Increase in yield by 310 bps to 19.5% in FY23Q2.
(cid:131) Along with 60 bps reduction in borrowing cost, NIM has increased from 9.9% in FY23Q1 to 13.0% in FY23Q2
(cid:131) 2x increase in PPOP (pre-provision profit) from Rs. 51 crs in FY23Q1 to Rs 110 crs in Q2 - ROA of 3.8%
(cid:131) Spandana has further strengthened its management team with hiring of 4 CXO’s during the quarter in Business, Risk and Finance functions
People
(cid:131) Enhanced the Board with addition of 2 more illustrious board members with [30]+ years of experience
(cid:131) Added ~300 Loan Officers during Q2 with plan to further add 1,000 Loan Officers in Q3 to augment the disbursement & collection engines of the company
(cid:131) Focus on acquiring new customers continues. 46% disbursement in Q2 was to new customers. Acquired 1.23 lac new customers against 1.06 lac in the previous
quarter a 16% growth.
(cid:131) AUM of Rs. 5,782 crs, ~5% growth over previous quarter.
Business Momentum
(cid:131) Q2 disbursement of Rs.1,391 crs as against Rs.1,320 crs in Q1 (growth of 5.3%) & Rs.1,150 crs in FY22Q2 (growth of 21% YoY)
(cid:131) Post-Apr’21 book (Rs.4,730 crs) now constitutes 82% of the total portfolio (vs. 70% in the previous quarter) delivering collection efficiency of 97.5% (excluding
arrears)
(cid:131) Overall Collection Efficiency in FY23 Q2 is 101.3% (incl arrears) & 93.3% (excl arrears)
(cid:131) Focus on roll-back and stabilization of Arrear bucket. Par 1-90 bucket at 5.7% in FY23Q2 vs. 7.5% in FY23Q1.
(cid:131) GNPA at 7.47%, NNPA @ 3.96%.Total provisions of Rs.303 crs (5.2%) on balance sheet – sufficient to cover any risk in the portfolio.
(cid:131) Rural portfolio has increased from 85% to 88% on the overall book reaffirming the direction of focus on rural geographies.
Excludes DA amounting to 364 crs
3
Rating Revision by all 3 rating agencies with Comfortable Liquidity Position
Positive ALM^ (Rs. crs)
Rating Instrument
Assets
Liabilites
Bank Facilities / NCD’s
Rating Agency CRISIL/ ICRA
Rating
Year
A Stable/ A- Stable
Sep 2022
1,960
1,481
1,204
1,233
1,347
899
514
333
332
242
331
305
Bank Facilities / NCD’s/ MLD’s
India-Ra
A Stable
Aug 2022
Bank Facilities/NCD's/ MLD's
India-Ra
A RWN
Jun 2022
Bank Facilities/NCD's/ MLD's
ICRA/India-Ra
A RWN/A-*
May 2022
Bank Facilities
CRISIL
A*
Apr 2022
33
1
114
58
Bank Facilities / NCD’s/ MLD’s
Ind-Ra/ICRA
A / A-*
Mar 2022
upto 1m# 1m to 2m 2m to 3m 3m to 6m 6m to 12m 1Y to 3Y 3Y to 5Y Over 5Y
Bank Facilities / NCD’s/ MLD’s
Ind-Ra
A / A-
Dec 2021
•
•
Positive ALM on cumulative basis with assets maturing faster than liabilities
Closing cash and bank balance (Rs. 964 crs as on 30 Sep), sufficient to meet future liquidity needs.
^Excludes DA amounting to 364 crs *ratings under watch with developing implications; #cash and cash equivalents (incl FDs)
Bank Facilities / NCD’s/ MLD’s
CRISIL/ ICRA
A / A-*
Nov 2021
Bank Facilities
Bank Facilities / NCD’s/ MLD’s
Bank Facilities / NCD’s
CRISIL
Ind-Ra
ICRA
A
A
A-
Jul 2021
Dec 2020
Mar 2019
(cid:1008)
Renewed Lender Confidence. Momentum reflected in Fund Raise during Quarter
1,080
738
691
308
155
79
118
962
FY22Q1 FY22Q2 FY22Q3 FY22Q4 FY23Q1 FY23Q2
Existing Lender Relationships
First Time Lenders
10 new (in FY23) Lenders Onboarded with 2 Marquee first time Lenders
(cid:1009)
Diversified Borrowing Profile supported by Capital Adequacy at ~45%
Diversified Funding Mix (As on 30-Sep-22)
Net-worth and Capital Adequacy
Capital Adequacyy
42.4%
42.4%
46.8%
51.1%
47.9%
45.3%
(cid:1005)(cid:1008)(cid:1081)
Net worth (Rs. crs)
Capital infusion of Rs.290 crs
3,088
2,743
2,763
2,733
2,817
2,867
(cid:1007)(cid:1007)(cid:1081)
(cid:1007)(cid:1007)(cid:1081)
(cid:1005)(cid:1081)
(cid:1009)(cid:1081)
(cid:1005)(cid:1008)(cid:1081)
PSU
FPI
Private Bank
NBFC
DFI
Capital Markets
FY22Q1
FY22Q2
FY22Q3
FY22Q4
FY23Q1
FY23Q2
Gearing ratio
1.9x
1.8x
1.5x
1.2x
1.1x
1.3x
6
Financial performance - upward movement exhibited
Total Income (Rs. crs)
Net Interest Income (Rs. crs)
+20.1%
+35.2%
259
311
219
162
Yield (%)
+310 bps
Cost of Borrowings (%)
-60 bps
19.5%
11.8%
11.2%
16.4%
Excluding interest reversal of 38 crs, the yield is 19%
FY23Q1
FY23Q2
FY23Q1
FY23Q2
FY23Q1
FY23Q2*
FY23Q1
FY23Q2
PPOP & PBT (Rs. crs)
PPOP PBT
+115.7%
51
110
84
NIM (%)
+310 bps
13.0%
ROA (%) - annualised
Pre credit cost Post credit cost
+240 bps
2.8%
5.2%
3.8%
-301
FY23Q1
FY23Q2
FY23Q1
FY23Q2*
-14.2%
FY23Q1
FY23Q2
Excluding interest reversal of 38 crs, NIM is 12.4%
9.9%
*The Company has revised Pricing. Yield on new disbursements from 1st July is 24% p.a.
7
Disbursement Momentum Continues : 5.3% growth QOQ
1,385
1,391
1,320
FY22Q4
FY23Q1
FY23Q2
(Rs. crs)
(cid:1012)
..Along with New Member Acquisition. 46% loans in the quarter to new customers
New members acquired (in 000) New members acquired (in ‘000)
Split of FY23Q2 Disbursements (loan count)
101
106
123
46%
54%
FY22Q4
FY23Q1
FY23Q2
New Member Loans
Exisiting Member Loans
(cid:1013)
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
2,883 48%
933 15%
2,273 37%
353 6%
1,302 24%
205 3%
847 15%
3,857 70%
4,730 82%
AUM - Rs. 6,089 crs
AUM - Rs. 5,513 crs
AUM - Rs. 5,782 crs
Post Apr-21 Book
Pre Mar-21 originated Non-Restructured
Pre Mar-21 originated Restructured
•
~70.2 crs has moved from restructured portfolio to non-restructured book.
Excludes DA amounting to 364 crs
10
… With Stable Collection Efficiency Across All Buckets…
Sep-22 AUM 5,782 crs
4,730 82%
1,052 18%
Collection Efficiency: Post Apr-21 Originated Book
96.4%
97.5%
97.5%
Q4FY22
Q1FY23
Q2FY23
CE (Excl. Arrears)
Collection Efficiency: Overall Book
92.2%
94.0%
93.3%
Pre Apr-21 Originated Book
Post Apr-21 Originated Book
Q4FY22
Q1FY23
Q2FY23
CE (Excl. Arrears)
Excludes DA amounting to 364 crs
11
Engagement with customers has led to reduction in the 1-90 Bucket from 7.51% to 5.73%
Mar-22
873.3
156.5
207.7
14.3%
2.6%
3.4%
Jun-22
414.1
85.4
106.4
7.5%
1.6%
1.9%
Sep-22
331.2
79.7
5.7%
1.4%
86.1
1.5%
509.1
8.4%
222.3
4.0%
165.4
2.9%
1-30
30-60
60-90
1-30
30-60
60-90
1-30
30-60
60-90
AuM of Rs. 6,088.6 crs
AuM of Rs. 5,513.0 crs
AuM of Rs. 5,782.1 crs
•
•
•
Arrear book has decreased from 31.6% in March to 14.2% in June to 13.1% in September
Rs. 24 crs arrear book decreased from June to September
6% of POS has moved forward while balance has been pulled back or stayed in the same bucket and collected.
% of total AUM Excludes DA amounting to 364 crs
12
Adequate Provisioning Buffer and Potential Upside from Write-off Recovery with high capital adequacy of 45.3%
PAR 90+
38
217
112
53
239
134
FY23 Q1
FY23 Q2
Particulars (Rs. crs)
AUM
% AUM
ECL Provision
Coverage
AUM
% AUM
ECL Provision
Coverage
Stage 1
4,953
89.86%
Current
4,731
85.82%
- 1-30
222
4.03%
Stage 2
192
3.48%
Stage 3*
367
6.67%
Total
5,513
100%
32
27
5
52
190
274
0.65%
5,190
89.67%
0.58%
5,025
86.81%
2.14%
165
2.86%
26.89%
166
2.86%
51.66%
426
7.47%
4.96%
5,782
100%
32
29
3
45
226
303
0.62%
0.57%
2.09%
26.85%
52.25%
5.23%
FY23 Q1
FY23 Q2
Particulars
Post Apr-21 Book
Pre Mar-21 originated Non-Restructured
Pre Mar-21 originated Restructured
GNPA#
NNPA
Capital Adequacy (CRAR %)
FY23 Q1
FY23 Q2
SSFL
6.51%
3.34%
Consolidated
6.67%
3.40%
47.9%
SSFL
7.31%
3.89%
Consolidated
7.47%
3.96%
45.3%
#Customers who have pre-closed the loans while they are 90+ have been added back ^Excludes DA amounting to 364 crs *Excludes Rs.6 crs of employee loans
13
Operational Performance Update –FY23 Q2
Growth in Borrowers with New Member Acquisitions
Stable Cohort of Branches
(In lakhs)
+1.9%
No of branches (#)
-0.2%
23.5
21.3
21.7
1,120
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 AUM/Branch
No. of Employees
8,763
8,294
8,426
No. of Loan officers
6,521
6,099
6,374
+4.5%
AuM/crs
5.9
+3.8%
5.3
5.5
Mar-22
Jun-22
Sep-22
Mar-22
Jun-22
Sep-22
Consolidated Profit & Loss Statement
Particulars (Rs. crs)
Revenue from Operations
Interest income
Commission and incentive income
Net gain on fair value changes
Other Income
Total income from operations
Non-operational Income
Total income
Expenses
Finance cost
Net loss on financial assets and liabilities designated at fair value through profit or loss
Employee benefit expense
Depreciation and amortization expense
Other expenses
Total Expenses
Pre-Provision Operating Profit (PPOP)
Impairment on financial instruments and other provisions
Profit before Tax
Tax expense
Profit after tax
Q2FY23
Q1 FY23
Q2 FY22
FY22
277.3
-
6.3
14.9
298.5
12.5
311.0
92.1
-
72.2
2.4
34.2
200.9
110.1
25.8
84.3
29.2
55.2
243.9
-
4.0
2.3
250.2
8.5
258.8
96.8
-
79.5
2.2
29.6
208.2
50.6
351.7
(301.1)
(81.4)
(219.7)
350.5
-
31.1
14.1
395.7
0.5
396.2
149.8
-
56.2
1.5
19.0
226.3
169.9
241.4
(71.5)
(12.8)
(58.7)
1,336.5
6.5
78.2
41.6
1,462.8
17.2
1,480.0
540.1
0.1
228.4
9.2
124.8
902.6
577.4
480.5
96.8
27.0
69.8
15
Consolidated Balance Sheet – Net-worth of 2,867 Crs
ASSETS (Rs. crs)
Financial Assets
Cash and cash equivalents
Bank Balances other than cash and cash equivalents
Trade Receivables
Loan Portfolio
Investments
Other financial assets
Total Financial Assets
Non-Financial Assets
Inventories
Current tax assets (net)
Deferred tax assets (net)
Property, Plant and Equipment
Intangible assets
Goodwill
Other non-financial assets
Total Non-financial assets
Total Assets
Sep 30, 2022
Mar 31, 2022
LIABILITIES & EQUITY (Rs. crs)
Sep 30, 2022
Mar 31, 2022
866.3
97.6
20.7
727.2
475.1
20.1
5,390.2
5,518.4
2.3
85.9
2.4
74.6
Financial Liabilities Debt Securities
Borrowings (Other than Debt Securities)
Subordinated Liabilities
Other Financial liabilities
Total Financial Liabilities
Non-Financial Liabilities
Current Tax Liabilities (net)
6,406.4
6,817.7
Provisions
15.4
34.3
269.4
25.8
5.5
17.4
25.9
-
18.8
184.2
6.8
7.1
17.4
24.3
Other Non-Financial liabilities
Total Non-Financial Liabilities
Equity
Equity Share Capital
Other Equity
Equity attributable to shareholders of the company
Non-Controlling Interest
393.8
258.6
Total Equity
6,856.8
7,076.3
Total Liabilities and Equity
1,813.5
1,922.4
20.2
164.8
1,778.2
1,973.7
20.2
131.2
3,920.8
3,903.3
9.6
3.9
55.7
69.1
28.2
4.0
50.9
83.1
71.0
69.1
2,795.6
3,018.5
2,866.6
3,087.6
0.2
2,866.8
6,856.8
2.4
3,089.9
7,076.3
(cid:1005)(cid:1010)
Company :
Spandana Sphoorty Financial Limited CIN: L65929TG2003PLC040648
www.spandanasphoorty.com
THANK YOU