Spandana Sphoorty Financial Limited has informed the Exchange about Investor Presentation
Ref: SSFL/Stock Exchange/2023-24/064
Date: July 24, 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 unaudited financial results of the Company for the quarter ended June 30, 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 unaudited financial results for the quarter ended June 30, 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
Celebrating India!
Q1 FY24 Investor Presentation
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
Significant progress made on 5 priorities Part of Vision 2025 articulated in July 2022
Status
1
People
2
Strengthen Governance, Risk and Control
3
Customer Acquisition led growth
4
Scale-up of technology to deliver an end-to-end paperless process
5
Customer focused initiatives with emphasis on Product and Service
3
YOY - AUM up 60%, Client addition up 144%, NII up 102%, GNPA 1.63%, PAT ₹119 Cr v/s loss of ₹220 Cr in Q1, FY23.
Delivering customer acquisition led growth
Improving Portfolio Quality
Client Addition
Disbursement
AUM
1 – 90 DpD
GNPA
NNPA
2.6 L
₹1,664 Cr
₹8,848 Cr
1.36%
1.63%
0.49%
YoY +144%
QoQ -39%
YoY +26%
QoQ -45%
YoY +60%
QoQ +4%
YoY -615 bps
QoQ -18 bps
YoY -506 bps
QoQ -44 bps
YoY -276 bps
QoQ -15 bps
Deepening Lender Relationships
Robust Financial Performance
Lending Partners
Funds raised
Cash & Bank balance
Net Interest Income
PPOP
PAT
47
₹1,540 Cr
₹1,056 Cr
₹328 Cr
₹189 Cr
₹119 Cr
YoY +102%
QoQ -15%
YoY +273%
QoQ -27%
Q1FY23 - ₹220 Cr
QoQ +13%
4
Momentum on increasing distribution sustained 188 branches added over last 2 quarters; ~13% YoY growth in borrower base
No. of borrowers (in L)
21.3
21.7
22.4
22.6
24.1
86% Rural
AUM per branch
(In ₹ Cr)
6.9
6.8*
6.1
14% Semi-Urban / Urban
5.5
5.3
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Number of employees
No. of Employees
8,294
8,426
8,732
10,016
10,671
No. of Loan officers
6,099
6,374
6,718
7,800
8,190
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
*AUM per Operational branch is ₹7.2 Cr at the end of Jun-23
Branch count
1,117
1,115
1,115
1,227
1,163
64
1,303 140 1,163
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Monthly Weekly
5
Focus on new member acquisition sustained 144% YoY growth in borrower addition; ~26% new borrowers from 7 focus states
New Members acquired (in ‘000)
26% from 7 focus states
427
260
219
123
144%
106
Q1FY23
Q1FY24
Q2FY23
Q3FY23
Q4FY23
1. Rajasthan 2. Uttar Pradesh 3. Bihar 4. West Bengal 5. Haryana 6. Tamil Nadu 7. Gujarat
7 Focus States 26%
Other States 74%
6
AUM growth momentum continues ~60% YoY growth in AUM; 26% YoY growth in Disbursement
60% AUM Growth over last 4 Quarters
AUM – QoQ Growth of 4%
8,848
60%
4%
8,848
8,511
6,852
5,513
5,513
5,782
Q1FY23*
Q1FY24
Q1FY23*
Q2FY23
Q3FY23^
Q4FY23#
Q1FY24
Disbursement (in ₹ Cr)
26%
1,664
1,320
1,391
3,054
2,361
*₹702 Cr written-off in Q1; ^Post Sale of ₹117 Cr portfolio to ARC; # Post sale of ₹133 Cr portfolio to ARC
Q1FY23
Q1FY24
Q2FY23
Q3FY23
Q4FY23
7
Net Collection Efficiency improves to 98.1%, Current book at 97.1%
Collection Efficiency (%)
AUM & Current book
106.1%
101.3% 102.1% 102.5% 101.5%
94.0%
93.3%
94.5%
97.6%
98.1%
8,500
8,000
7,500
7,000
6,500
6,000
5,500
5,000
92.1%
6,852
85.8%
86.9%
5,782
5,513
8,511
96.6%
8,848
105.0%
97.1%
100.0%
95.0%
90.0%
85.0%
80.0%
75.0%
70.0%
65.0%
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
Gross CE
Net CE
Q1FY23*
Q2FY23 AUM (in ₹ Cr)
Q3FY23^
Q4FY23#
Q1FY24
Current Book (% of AUM)
* ₹702 Cr written-off in Q1FY23; ^ Post Sale of ₹117 Cr portfolio to ARC; # Post sale of ₹133 Cr portfolio to ARC
8
Portfolio quality: 1-90 book at 1.36% Improvement of +0.18% over previous quarter
1 – 90 dpd
14.40%
1 – 30 dpd
8.36%
7.51%
5.73%
4.03%
2.86%
2.59%
1.54%
1.36%
1.16%
0.58%
0.55%
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
31 – 60 dpd
3.41%
1.93%
1.49%
61 – 90 dpd
2.57%
1.55%
1.38%
0.83%
0.54%
0.42%
0.60%
0.42%
0.39%
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
9
… accompanied by GNPA and NNPA reduction
18.65%
10.46%
6.69%
3.24%
7.37%
3.84%
5.31%
2.52%
42% of GNPA is from Pre-April’21 book
2.07%
0.64%
1.63%
0.49%
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Flows: 0.5% of AUM has moved forward while balance has been pulled back or stayed in same bucket
10
GNPA
NNPA
Portfolio risk sufficiently covered with PCR at 70%
Provisioning & Coverage
Stage 1
Current
- 1-30
Stage 2
Stage 3
Total
Q1 FY24
Q4 FY23
Loans Outstanding (₹ Cr)^
% of Loans Outstanding
ECL Provision (₹ Cr)
Coverage
Loan Outstanding (₹ Cr)^
% of Loan Outstanding
ECL Provision (₹ Cr)
8,191
8,144
46
68
137
8,395
97.56%
97.01%
0.55%
0.81%
1.63%
100%
85
84
1
26
96
207
1.04%
1.03%
2.97%
38.59%
70.10%
2.47%
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
Coverage
1.16%
1.15%
2.91%
38.88%
69.10%
2.93%
Q1 FY24
Q4 FY23
Impairment on financial instruments in Q1FY24
Amount (₹ Cr)
GNPA
NNPA
PCR
SSFL
Consolidated
SSFL
Consolidated
1.49%
1.63%
1.95%*
2.07%
0.45%
0.49%
0.58%
0.64%
70.00%
70.10%
70.00%
69.10%
- On write-off’s
- On GNPA
- On stage 1, 2 & others
- On Security Receipts
Capital Adequacy (CRAR %)
38.02%
37.60%
36.87%
36.34%
- Amount receivable from assignment portfolio
Total
* Post sale of ₹133 Cr portfolio to ARC in Q4FY23 ^ Excludes DA book
6.36
(5.63)
(6.26)
8.12
26.00
28.58
11
Lender relationships being strengthened ~894% YoY growth in fund mobilization
Total borrowing (in ₹ Cr)
Diversified borrowing mix^
2,402
2,138
1,540
1,080
155
7%
31%
4%
₹6,868 Cr
40%
18%
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q1FY24
• Marginal cost of borrowing slightly lower at 12.3% for Q1FY24 vs. 12.6% in Q4FY23
• Weighted average cost of borrowing at 12.5% vs. 12.4% end of Q4FY23
65% borrowings from Banks / FI’s
PSU
Private Banks
NBFC
FPI
Capital markets
^ Including Direct Assignment transactions executed since FY23 with outstanding of ₹486 Cr as on 30-Jun-23
12
Income and Yields continue to trend higher NII up 102%, Yield at 24%, PAT ₹119 Cr (-₹220 Cr in Q1 FY23)
Total Income* (₹ Cr)
Net Interest Income* (₹ Cr)
Yield (%)
Cost of Borrowing* (%)
YoY +104%
527
QoQ -1%
533
YoY +102%
328
QoQ -15%
384
YoY +765 bps 24.0%
QoQ +120 bps
22.8%
YoY +71 bps
12.5%
QoQ +9 bps
12.4%
11.8%
259
162
16.4%
Q1 FY23
Q1 FY24
Q4 FY23
Q1 FY23
Q1 FY24
Q4 FY23
Q1 FY23
Q1 FY24
Q4 FY23
*Includes Net gain on fair value change of ₹3 Cr toward DA transaction undertaken in Q1FY24 & ₹44 Cr in Q4FY23
₹7 Cr income on ARC transaction recognized in Q4FY23 as per IndAS. Including this, Q4 Yield is 23.2%
Q1 FY23
Q1 FY24
Q4 FY23 *Cost of borrowing for Q4FY23 is 11.4% including expenses reversal of ₹13 Cr which were recognized upfront in previous quarter
NIM^ (%)
PPOP (₹ Cr)
PBT (₹ Cr)
PAT (₹ Cr)
YoY +434 bps
QoQ +38 bps
14.2%
13.9%
YoY +273%
QoQ -27%
261
189
9.9%
51
Q1FY23 - ₹301 Cr
QoQ +16%
Q1FY23 - ₹220 Cr
QoQ +13%
161
Q1 FY23
Q1 FY24
139
Q4 FY23
119
Q1 FY24
Q1 FY23
-220
106
Q4 FY23
Q1 FY23
Q1 FY24
Q4 FY23
Q1 FY23
Q1 FY24
Q4 FY23
-301
^₹7 Cr income on ARC transaction recognized in Q4FY23 as per IndAS. Including this, Yield is 23.2% in Q4. 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 vs. actual 15% in Q4. Higher NIM is also due to muted leverage in Q1FY24
13
ROA at 5.9%, Opex to AUM 6.4%; Net-worth increases to ₹3,228 Cr
Cost to income (%)
Opex to AUM (%)
Net-worth (₹ Cr)
68.7%
42.7%
Q1 FY23
Q1 FY24
36.2%
Q4 FY23
7.7%
6.4%
6.6%
Q1 FY23
Q1 FY24
Q4 FY23
ROA (%)
ROE (%)
5.9%
5.9%
15.2%
14.1%
-14.2%
Q1 FY23
Q1 FY24
Q4 FY23
-29.8%
Q1 FY23
Q1 FY24
Q4 FY23
2,817
2,867
2,961
3,099
3,228
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Gearing
1.1x
1.3x
1.7x
2.0x
2.0x
CRAR
47.9%
45.3%
39.1%
36.3%
37.6%
14
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
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
Q1 FY24
Q4 FY23
Q1 FY23
490
13
9
512
16
527
200
103
3
32
338
189
29
161
41
119
419
66
13
498
35
533
149
85
4
34
272
261
122
139
33
106
244
4
2
250
9
259
97
79
2
30
208
51
352
(301)
(81)
(220)
15
Jun 30, 2023 Mar 31, 2023
LIABILITIES & EQUITY (₹ Cr)
Jun 30, 2023 Mar 31, 2023
Consolidated Balance Sheet
ASSETS (₹ Cr)
Financial Assets
Cash and bank balances
Loan Portfolio
Investments
Other financial assets
1,056
8,203
166
78
1,005
7,760
189
122
Total Financial Assets
9,504
9,076
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
-
61
159
26
5
17
15
283
9,787
1
40
197
25
5
17
22
307
9,383
Financial Liabilities
Debt Securities
Borrowings (Other than Debt Securities)
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 Liabilities and Equity
3,574
2,788
20
122
6,504
4
14
36
54
71
3,157
3,228
0.2
3,228
9,787
3,369
2,685
20
155
6,230
4
6
43
54
71
3,028
3,099
0.2
3,099
9,383
16
Annexure
17
Positive ALM and Stable Ratings
Positive ALM (₹ Cr)*
Credit Rating – Spandana Sphoorty Financial Ltd
3,233
3,166
2,527
2,267
1,355
1,527
1,365
1,442
394
430
303
446
417
75
73
156
upto 1m 1m to 2m 2m to 3m 3m to 6m 6m to 12m 1Y to 3Y 3Y to 5Y Over 5Y
Assets
Liabilites
Rating Agency
Rating Instrument
Rating
Year
ICRA
Bank Facilities / NCD’s / MLD’s
A- Positive Mar 2023
India-Ra
Bank Facilities / NCD’s/ MLD’s
A Stable
CPs
A1
Jan 2023
CRISIL
Bank Facilities
A Stable
Sep 2022
Credit Rating – Criss Financial Ltd
•
•
Positive ALM on cumulative basis with assets maturing faster than liabilities
Closing Cash and Bank balance (Rs. 1,055 Cr as on 30 Jun’23), sufficient to meet future liquidity needs.
Rating Agency
Rating Instrument
Rating
Year
ICRA
Bank Facilities / MLD’s
BBB Positive Mar 2023
India-Ra
Bank Facilities
BBB+ Stable Mar 2023
* Standalone
18
Well diversified presence
AUM concentration*
District level concentration
Largest
2.0%
Top 5
7.8%
Top 10
Top 20
Others
13.7%
23.0%
Branch level concentration
Largest
0.3%
Top 5
1.3%
Top 10
2.4%
Top 20
4.6%
Others
79.0%
95.4%
19
* Standalone
Thank you!
Spandana Sphoorty Financial Limited
Investor Relations
Rahul Dhamale Head – Investor Relations +91 40 4547 4763 investor.relations@spandanasphoorty.com
Strategic Growth Advisors Pvt. Ltd Abhishek Shah / Krunali Shah +91 99306 51660 / +91 98209 87564