Spandana Sphoorty Financial Limited has informed the Exchange about Investor Presentation
Ref: SSFL/Stock Exchange/2023-24/025
Date: May 02, 2023
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 audited financial results of the Company for the quarter and year ended March 31, 2023.
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 audited financial results for the quarter and year ended March 31, 2023.
Kindly take the above on record.
Thanking you.
Yours sincerely, For Spandana Sphoorty Financial Limited
Ramesh Periasamy Company Secretary and Chief 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 – 500081, Telangana Ph: +9140-45474750 | contact@spandanasphoorty.com | www.spandanasphoorty.com
Spandana Sphoorty Financial Limited
….Committed to low-income households
Q4 FY23 & FY23 Investor Presentation
18
Years
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.
2
Q4 FY23 & FY 2023 Business Performance
QOQ - AUM up 24%, Client Addition up 95%, NNPA at 0.64%, PAT increased by 48% YoY- AUM up 29%, Client Addition up 294%, NNPA at 0.64%, PAT increased by 269%
Growth in line with expectations
Healthy asset quality
Client Addition
Disbursement
AUM
1 – 90 DpD
GNPA
NNPA
4.3 L
₹3,054 Cr
₹8,511 Cr
1.54%
2.07%
0.64%
+294% YoY
+95% QoQ
+120% YoY
+29% QoQ
+29% YoY
+24% QoQ
-1280 bps YoY
-105 bps QoQ
-1658 bps YoY
-324 bps QoQ
-982 bps YoY
-188 bps QoQ
Continued momentum in fund raising
Strong financial performance
New lenders onboarded
8 Total lenders 48*
Funds raised
Cash & Bank balance
Net Interest Income
PPOP
PAT
₹2,402 Cr
₹1,005 Cr
₹384 Cr
₹261 Cr
₹106 Cr
+680% YoY
+12% QoQ
+101% YoY
+51% QoQ
+351% YoY
+85% QoQ
+269% YoY
+48% QoQ
* Includes arrangers of Capital Market instruments
4
112 new branches added; Positive momentum across key operational vectors
No. of borrowers
AUM per branch
Borrower count including written-off borrowers (in L)
23.5
23.9
24.0
25.7
28.6
Borrower count (in L) 23.5
21.3
21.7
22.4
22.6
(In ₹ Cr)
87% Rural 13% Urban
5.9
5.3
5.5
6.9
+14%
6.1
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Number of employees
No. of Employees
8,763
8,294
8,426
8,732
10,016
No. of Loan officers
6,521
6,099
6,374
7,800
+16%
6,718
Mar-22 AUM per Operational Branch is ₹7.3 Cr at the end of Mar-23
Sep-22
Jun-22
Dec-22 Mar-23
Branch count
1,227
+10%
1,120
1,117
1,115
1,115
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Mar-22
Jun-22
Sep-22
Dec-22 Mar-23
5
New member acquisition driving growth 95% growth over Q3; 50% loans to new members in FY23
New members acquired (in ‘000)
427
Focus States contributed 29% of Q4 Member Acquisition
101
106
+77%
123
+95%
219
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
+166%
329
FY22
876
FY23
7 Focus States 29%
1. Rajasthan 2. Uttar Pradesh 3. Bihar 4. West Bengal 5. Haryana 6. Tamil Nadu 7. Gujarat
Other States 71%
6
Robust momentum in disbursement & growth in AUM ~29% increase in disbursement; AUM up by 24% QoQ & 29% YoY
Disbursement (in ₹ Cr)
AUM (in ₹ Cr)
3,054
+29%
2,361
+70%
1,385
1,320
1,391
8,511
+24%
6,852
6,581
+19%
5,782
5,513
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q4FY22^^ Q1FY23*
Q2FY23
Q3FY23^
Q4FY23#
8,125
+141%
3,373
8,511
+29%
6,581
FY22
FY23
FY22^^
FY23
^^ Includes DA transaction executed prior to Jun’21 *₹702 Cr written-off in Q1 ^ Post Sale of ₹117 Cr portfolio to ARC; # Post sale of ₹133 Cr portfolio to ARC & ₹41 Cr written off during Q4
7
Well diversified lender base 12% growth in fund mobilization; 8 new lenders added in Q4
Total Borrowings (in ₹ Cr)
5,775
308
155
+98%
2,138
1,080
+12%
2,402
+208%
1,875
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
FY22
FY23
Marginal cost of borrowing stable at 12.55% for Q4FY23 vs. 12.66% in Q3FY23;
Weighted average cost of borrowing at 12.4% vs. 11.5% end of Q3FY23
Diversified funding mix^ (31-Mar-23)
Net-worth (₹ Cr)
10%
33%
₹6,606 Cr
35%
5%
17%
PSU Private Banks NBFC FPI Capital markets
62% borrowings from Banks / FI’s
^ Including Direct Assignment transactions executed in Q4FY23 with outstanding of ₹532 Cr as on 31-Mar-23 (excluding DA transactions which were executed prior to June-21)
Gearing ratio
1.2x
Capital Adequacy
51.1%
1.1x
47.9%
1.3x
45.3%
1.7x
39.1%
2.0x
36.3%
8
3,088
2,817
2,867
2,961
3,099
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Improvement in current book from 92.1% to 96.6% Collection efficiency continues to improve
AUM & Current Book
Collection Efficiency
Pre-Apr-21 (% of AUM)
52%
30%
18%
8%
2%
24%
8,511
105.0%
106.1%
101.3%
102.1%
102.5%
96.6%
100.0%
94.0%
93.3%
94.5%
97.6%
8,500
8,000
7,500
7,000
6,500
6,000
92.1%
6,852
85.8%
86.9%
6,581
5,782
5,500
68.4%
5,513
5,000
95.0%
90.0%
85.0%
80.0%
75.0%
70.0%
65.0%
Q4FY22^^
Q1FY23*
Q2FY23
Q3FY23^
Q4FY23#
AUM (in ₹ Cr)
Current Book (% of AUM)
Q1FY23
Q2FY23
Gross CE
Q3FY23 Net CE
Q4FY23
Flows: 0.9% of AUM has moved forward while balance has been pulled back or stayed in same bucket
^^Includes DA transaction executed prior to Jun’21;* ₹702 Cr written-off in Q1FY23; ^ Post Sale of ₹117 Cr portfolio to ARC; # Post sale of ₹133 Cr portfolio to ARC & ₹41 Cr written off during Q4
9
Consistent improvement in (1 to 90) book… 1 to 90 book down from 2.6% to 1.5% (QoQ)
14.4%
1 to 90 Book
8.4%
1 to 30 DPD
7.5%
5.7%
4.0%
2.9%
2.6%
1.5%
1.2%
0.6%
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
3.4%
31 to 60 DPD
2.6%
61 to 90 DPD
1.9%
1.5%
1.6%
1.4%
0.8%
0.5%
0.6%
0.4%
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
10
… accompanied by GNPA & NNPA reduction…
18.7%
10.5%
6.7%
3.2%
7.4%
3.8%
5.3%
2.5%
45% of GNPA is from Pre- April’21 book (2% of AUM)
2.07%
0.64%
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
GNPA
NNPA
11
… and PCR at 70% on unsecured portfolio PCR at 69.1% at consolidated level (due to lower provisioning in secured portfolio)
Provisioning & Coverage
Stage 1
Current
- 1-30
Stage 2
Stage 3*
Total
Q4 FY23
Q3 FY23
Loans Outstanding (₹ Cr)^
% of Loans Outstanding
ECL Provision (₹ Cr)
Coverage
Loan Outstanding (₹ Cr)^
% of Loan Outstanding
ECL Provision (₹ Cr)
7,766
7720
46
77
166
8,009
96.97%
96.39%
0.58%
0.96%
2.07%
100%
90
89
1
30
115
235
1.16%
1.15%
2.91%
38.88%
69.10%
2.93%
6,390
6,311
79
98
364
6,852
93.25%
92.10%
1.16%
1.44%
5.31%
100%
41
39
2
41
191
272
Coverage
0.63%
0.62%
1.98%
41.60%
52.49%
3.98%
Q4 FY23
Q3 FY23
Impairment on financial instruments in Q4FY23
Amount (₹ Cr)
GNPA#
NNPA
PCR
SSFL
Consolidated
SSFL
Consolidated
- Write-off (ARC & others)
1.95%
2.07%
5.10%
5.31%
- Change in ECL % from 52.5% to 69.1% on opening NPA
0.58%
0.64%
2.30%
2.52%
- On flow during Q4
70.0%
69.1%
55.0%
52.5%
- On stage 1, 2 & others
Capital Adequacy (CRAR %)
36.9%
36.3%
39.2%
39.1%
Total
* Post sale of ₹133 Cr portfolio to ARC in Q4FY23 and ₹117 Cr portfolio to ARC in Q3FY23 ^ Excludes DA book
40.8
34.6
23.6
23.2
122.2
12
Financials showing a healthy movement (1/2)
Total Income* (₹ Cr)
Net Interest Income* (₹ Cr)
Yield (%)
Cost of Borrowings (%)
+42%
533
375
299
259
310
191
162
219
+51%
384
254
+168 bps
22.8%
21.2%
19.5%
11.8%
10.8%
11.2%
11.5%
12.4%
17.6%
16.4%
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
*Includes Net gain on fair value change of ₹44 Cr toward DA transaction undertaken in Q4FY23
Q2 FY23
Q1 FY23
Q4 FY22 ₹7 Cr income on ARC transaction recognized in Q4FY23 and ₹5 Cr in Q3FY23 as per IndAS. Including this, Yield is 23.2% in Q4 and 21.5% in Q3
Q4 FY23
Q3 FY23
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Cost of borrowing for Q4FY23 is 11.4% including expenses reversal of ₹13 Cr which were recognized upfront in previous quarter
NIM^ (%)
Cost to Income (%)
Opex to AUM (%)
13.5%
13.9%
13.0%
69.8% 68.7%
10.5%
9.9%
49.7%
-847 bps
44.7%
36.2%
8.5%
8.0%
7.7%
-39 bps
7.2%
6.8%
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
^₹7 Cr income on ARC transaction recognized in Q4FY23 and ₹5 Cr in Q3FY23 as per IndAS. Including this, Yield is 23.2% in Q4 and 21.5% in Q3. Normalized Finance cost is 9.0% for Q4, excluding ₹13 Cr upfront expenses recognized till previous quarter. Due to above, normalized NIM is 13.9% in Q4 and 13.5% in Q3 vs. actual 15% in Q4 and 13.8% in Q3
13
Financials showing a healthy movement (2/2)
PPOP & PBT (₹ Cr)
PAT (₹ Cr)
+85%
261
110
84
141
96
139
58
38
51
+44%
-301
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
PPOP
PBT
ROA (%)
1.8%
+132 bps 4.5%
5.9%
3.8%
+48% 71
106
55
29
-220
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
ROE (%)
4.1%
+433 bps 9.8%
14.1%
7.7%
-14.2%
-29.8%
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
14
Ready to pursue growth agenda as operating vectors stabilized (Revenue, Credit Cost, Provisioning)
Total Income (₹ Cr)
1,480
1,477
Operating Cost (₹ Cr)
Finance Cost (₹ Cr)
+26%
457
362
540
-15%
458
FY22
FY23
FY22
FY23
FY22
FY23
Average AUM reduction of 13% and income reversal of ₹38 Cr against write off in Q1 primarily led to flat income
Opex growth in-line with business growth
Average borrowing reduction of 13% led to reduction in finance cost by 15%
PPOP (₹ Cr)
577
-3%
562
Credit Cost (₹ Cr)
+13%
544
481
PAT (₹ Cr)
70
-82%
12
FY22
FY23
FY22
FY23
FY22
FY23
Driven by higher NPA and SMA buckets at the start of the year
15
Consolidated Income Statement
Particulars (₹ Cr)
Revenue from Operations
Interest 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
Q4 FY23
Q3 FY23
Q4 FY22
FY23
FY22
419.3
65.7
13.1
498.1
34.9
533.0
337.7
8.4
8.5
354.7
20.3
375.0
260.8
8.3
17.7
286.8
12.3
299.1
149.0
120.7
107.9
-
85.5
3.7
34.0
272.2
260.8
122.2
138.6
33.0
105.6
-
69.2
2.6
41.8
234.4
140.6
44.6
96.0
24.7
71.4
-
64.1
2.7
66.6
241.3
57.8
20.0
37.8
9.2
28.6
1,277.5
1,336.5
84.5
38.7
1,400.8
76.3
1,477.0
457.9
-
305.7
10.9
140.4
914.9
562.1
544.3
17.8
5.4
12.4
78.2
48.0
1,462.8
17.2
1,480.0
540.1
0.1
228.4
9.2
124.8
902.6
577.4
480.6
96.9
27.0
69.8
16
Consolidated Balance Sheet Net-worth increased to ₹3,099 Cr
ASSETS (₹ Cr)
Financial Assets
Mar 31, 2023
Mar 31, 2022
Cash and bank balances
1,004.5
1,202.3
LIABILITIES & EQUITY (₹ Cr) Financial Liabilities Debt Securities
Borrowings (Other than Debt Securities)
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
7,759.8
5,518.4
189.4
122.1
2.4
94.6
9,075.8
6,817.7
1.3
39.5
196.9
24.9
4.7
17.4
22.2
-
18.8
184.2
6.8
7.1
17.4
24.3
Total Non-financial assets
306.8
258.6
Subordinated Liabilities
Other Financial liabilities
Total Financial Liabilities
Non-Financial Liabilities Current Tax Liabilities (net)
Provisions
Other Non-Financial liabilities
Total Non-Financial Liabilities
Equity
Equity Share Capital
Other Equity
Equity attributable to shareholders of the company
Non-Controlling Interest
Total Equity
Total Assets
9,382.6
7,076.3
Total Liabilities and Equity
Mar 31, 2023
Mar 31, 2022
3,368.8
2,685.5
20.0
155.3
1,778.2
1,973.7
20.2
131.2
6,229.6
3,903.3
4.0
6.3
43.5
53.8
28.2
4.0
50.9
83.1
71.0
69.1
3,028.0
3,018.5
3,099.0
3,087.6
0.2
3,099.2
9,382.6
2.4
3,089.9
7,076.3
17
Rating outlook revision driven by improved performance
SSFL rating outlook revised by ICRA to “Positive” from “Stable” during the quarter CFL rating outlook revised by ICRA to “Positive” from “Stable” during the quarter CFL received a rating of BBB+/ Stable from India Ratings in March 2023
Positive ALM (₹ Cr)
Credit Rating – Spandana Sphoorty Financial Ltd
3,088
3,212
2,387
2,128
1,837
1,286
504
502
491
392
421
1,548
797
upto 1m# 1m to 2m 2m to 3m 3m to 6m 6m to 12m 1Y to 3Y 3Y to 5Y Over 5Y
Assets
Liabilites
137
84
156
Rating Instrument
Rating Agency
Rating
Year
Bank Facilities / NCD’s / MLD’s
ICRA
A- Positive
Mar 2023
Bank Facilities / NCD’s/ MLD’s CPs
Bank Facilities
India-Ra
CRISIL
A Stable A1
A Stable
Jan 2023
Sep 2022
Credit Rating – Criss Financial Ltd
Rating Instrument
Rating Agency
Rating
Year
•
•
Positive ALM on cumulative basis with assets maturing faster than liabilities
Closing Cash and Bank balance (Rs. 1,005 Cr as on 31 Mar’23), sufficient to meet future liquidity needs.
Bank Facilities / MLD’s
Bank Facilities
ICRA
India-Ra
BBB Positive
BBB+ Stable
Mar 2023
Mar 2023
18
Spandana Sphoorty Financial Limited
….Committed to low-income households
THANK YOU
18
Years