Spandana Sphoorty Financial Limited has informed the Exchange about Investor Presentation
Ref: SSFL/Stock Exchange/2023-24/111
Date: October 30, 2023
To BSE Limited, Department of Corporate Services P. J. Towers, 25th Floor, Dalal Street, Mumbai – 400001
Dear Sir/Madam,
To National Stock Exchange of India Limited, Listing Department Exchange Plaza, C-1, Block G Bandra Kurla Complex, Bandra (E) Mumbai – 400051
Sub: Investor presentation on the unaudited financial results of the Company for the quarter and half year ended September 30, 2023.
Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations”).
Pursuant to Regulation 30 of SEBI LODR Regulations, please find enclosed herewith a copy of Investor Presentation of the Company on the unaudited financial results for the quarter and half year ended September 30, 2023.
Kindly take the same 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, Rangareddi TG 500081 IN Ph: +9140-45474750 | contact@spandanasphoorty.com, www.spandanasphoorty.com
Celebrating Bharat!
Spandana Sphoorty Financial Limited
Madhubani Art
Q2 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
YOY - AUM up 69%, customer Acquisition up 183%, PAT up 127%, Income up 106%
Delivering customer acquisition led growth
Deepening lender relationships
Client Addition
3.5 L
YoY +183%
QoQ 34%
Borrower count
27 L
YoY +24%
QoQ 12%
Strong growth in Disbursement & AUM
Disbursement
AUM
₹2,513 Cr
YoY +81%
QoQ 51%
₹9,784 Cr
YoY +69%
QoQ 11%
Lending partners
54
Funds raised
₹3,191 Cr
YoY +195%
QoQ 107%
Comfortable cash & capital position Cash & Bank balance
CRAR
36.6%
₹1,850 Cr
Stable portfolio quality
Robust financial performance
1 – 90 Dpd
GNPA
NNPA
Income
PPOP
PAT
2.04%
1.40%
0.42%
₹640 Cr
₹258 Cr
₹125 Cr
YoY -369 bps
QoQ +68 bps
YoY -597 bps
QoQ -23 bps
YoY -343 bps
QoQ -7 bps
YoY +106%
QoQ +21%
YoY 134%
QoQ +36%
YoY +127%
3
QoQ +5%
3
24% YoY growth in borrower base Momentum on increasing distribution sustained – 199 new branches added
No. of borrowers (in L)
Branch count
21.7
22.4
22.6
27.0
24.1
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Number of employees
No. of Employees
8,426
8,732
10,016
10,671
12,677
No. of Loan officers excluding trainees
8,504
7,103
7,033
5,659
5,478
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
1,502*
323
1,227 64
1,303
140
1,115
1,115
1,163
1,163
1,179
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Monthly Weekly
Total
*95 branches yet to start operations
AUM per branch (₹ Cr)
7.3
7.2
7.0^
6.1
5.5
Sep-22
Sep-23 ^For operational branches; AUM / Branch with tenure >1 year is ₹8.6 Cr
Dec-22
Jun-23
Mar-23
4
Focus on new customer acquisition sustained 183% YoY growth in borrower addition; ~31% new borrowers from 7 focus states
New customers acquired (in ‘000)
31% customer acquisition from 7 focus states
QoQ 34%
YoY +183%
350
260
1. Bihar 2. Rajasthan 3. Uttar Pradesh 4. West Bengal 5. Haryana 6. Tamil Nadu 7. Gujarat
7 Focus States 31%
123
Other States 69%
Q1 FY24
Q2 FY24
Q2 FY23
22% AUM from 7 focus states
5
AUM growth momentum continues ~69% YoY growth in AUM; 81% YoY growth in Disbursement
AUM (₹ Cr) - YoY Growth of 69%
AUM (₹ Cr) – QoQ Growth of 11%
9,784
69%
5,782
43.6% Share of top 3 states
6,852
5,782
8,511
8,848
11%
9,784
Q2FY23
Q2FY24
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Q2FY24
Disbursement (₹ Cr)
QoQ 51%
2,513
YoY +81%
1,664
1,391
Q1FY24
Q2FY24
Q2FY23
6
Net Collection Efficiency at 97.7%, Current book at 96.7%
Collection Efficiency (%)
AUM (₹ Cr) & Current book (%)
101.3% 102.1% 102.5% 101.5% 100.3%
10,000
93.3%
94.5%
97.6%
98.1%
97.7%
9,500
9,000
8,500
8,000
7,500
7,000
6,500
6,000
5,500
5,000
86.9%
5,782
96.6%
97.1%
92.1%
8,848
8,511
6,852
Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
Gross CE
Net CE
Q2FY23
Q3FY23 AUM (in ₹ Cr)
Q4FY23
Q1FY24
Q2FY24
Current Book (% of AUM)
9,784
100.0%
96.7%
95.0%
90.0%
85.0%
80.0%
75.0%
70.0%
65.0%
7
Portfolio quality: 1-90 book at 2.04%
1 – 90 dpd
14.40%
7.51%
5.73%
1 – 30 dpd
8.36%
4.03%
2.86%
2.59%
1.54% 1.36% 2.04%
1.16%
0.58% 0.55% 0.85%
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Q1 FY24
Q2 FY24
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Q1 FY24
Q2 FY24
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%
0.60%
0.42% 0.39%
0.59%
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Q1 FY24
Q2 FY24
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Q1 FY24
Q2 FY24
8
GNPA reduces to 1.40%; NNPA at 0.42%
18.65%
10.46%
6.69%
3.24%
7.37%
3.84%
5.31%
2.52%
2.07%
1.63%
0.64%
0.49%
1.40%
0.42%
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Q2FY24
GNPA
NNPA
9
Portfolio risk sufficiently covered with PCR at 70.26%
Provisioning & Coverage
Stage 1
Current
- 1-30
Stage 2
Stage 3
Total
Q2 FY24
Q1 FY24
Loans Outstanding (₹ Cr)
% of Loans Outstanding
ECL Provision (₹ Cr)
Coverage
Loans Outstanding (₹ Cr)
% of Loans Outstanding
ECL Provision (₹ Cr)
8,817
8,740
77
107
127
9,052
97.41%
96.56%
0.85%
1.19%
1.40%
100%
85
82
2
43
89
216
0.96%
0.94%
3.07%
39.68%
70.26%
2.39%
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
Coverage
1.04%
1.03%
2.97%
38.59%
70.10%
2.47%
Q2 FY24
Q1 FY24
Impairment on financial instruments in Q2FY24
SSFL
Consolidated
SSFL
Consolidated
GNPA
NNPA
PCR
1.27%
1.40%
1.49%
1.63%
0.38%
0.42%
0.45%
0.49%
70.00%
70.26%
70.00%
70.10%
* Represents impairment cost pertaining to loans disbursed prior to April’21 & Security Receipts
- On write-off’s
- On GNPA
- On stage 1, 2 & others
Sub-total
Others*
Total
Amount (₹ Cr)
% of average loan O/s
6.43
8.03
17.18
31.64
58.41
1.4%
2.6%
90.05
4.1%
10
Liability relationships being strengthened ~195% YoY growth in fund mobilization
Incremental borrowing (in ₹ Cr)
Cost of borrowing
QoQ 107%
YoY +195%
3,191
12.6%
12.7%
12.4%
12.6%
12.5%
12.3%
12.5%
12.3%
11.2%
11.5%
Q2 FY23
Q3 FY23
Q4 FY23
Q1 FY24
Q2 FY24
Cost of Borrowing
Marginal Cost of Borrowing
1,542
Diversified borrowing mix
1,080
Q1 FY24
Q2 FY24
Q2 FY23
1%
38%
14%
47%
Q2 FY23
1%
42%
14%
43%
Q3 FY23
2%
36%
17%
45%
Q4 FY23
2%
32%
18%
48%
Q1 FY24
2%
5%
28%
21%
44%
Q2 FY24
Banks
NBFC
DFI
FPI
Capital Markets
11
Income and profitability continue to trend higher YoY – Net Income up 89%, PAT up 127%
Total Income* (₹ Cr)
Net Income*^ (₹ Cr)
QoQ 21%
YoY +106%
640
Q2 FY24
QoQ +36%
258
YoY +134%
527
Q1 FY24
PPOP* (₹ Cr)
189
Q1 FY24
Q2 FY24
310
Q2 FY23
110
Q2 FY23
QoQ 26%
412
YoY +89%
328
Q1 FY24
Q2 FY24
PAT (₹ Cr)
QoQ +5%
YoY +127%
119
125
Q1 FY24
Q2 FY24
219
Q2 FY23
55
Q2 FY23
*Includes Net gain on fair value change of ₹42 Cr toward DA transaction undertaken in Q2FY24 & ₹3 Cr in Q1FY24 ^Net Income = Total income less finance cost
12
Yields improve further while NIM remains stable NIM stable at 14.1% and yield improves to 24.5%
Yield (%)
Cost of Borrowing (%)
QoQ +41 bps
YoY +496 bps
24.0%
24.5%
19.5%
QoQ +1 bps
YoY +131 bps
12.5%
12.5%
11.2%
Q1 FY24
Q2 FY24
Q2 FY23
Q1 FY24
Q2 FY24
Q2 FY23
NIM (%)
Gearing (x)
QoQ -11 bps
YoY +113 bps
14.2%
14.1%
13.0%
1.98
2.31
Q1 FY24
Q2 FY24
Q2 FY23
Q1 FY24
Q2 FY24
1.31
Q2 FY23
13
ROA at 5.7%, Cost to Income at 41.8%, ROE at 15.1%
Cost to income* (%)
Opex to AUM (%)
QoQ -89 bps
YoY -791 bps
49.7%
42.7%
41.8%
Q1 FY24
Q2 FY24
Q2 FY23
QoQ +19 bps
YoY -136 bps
6.4%
Q1 FY24
6.6%
Q2 FY24
8.0%
Q2 FY23
ROA (%)
ROE (%)
QoQ -19 bps
YoY +187 bps
5.9%
5.7%
Q1 FY24
Q2 FY24
3.8%
Q2 FY23
QoQ -10 bps
YoY +737 bps
15.2%
15.1%
Q1 FY24
Q2 FY24
7.7%
Q2 FY23
*Normalized for Net gain on fair value change of ₹42 Cr toward DA transaction undertaken in Q2FY24 & ₹3 Cr in Q1FY24
14
Net-worth increases to ₹3,360 Cr; CRAR at 36.6%
Net-worth (₹ Cr)
CRAR (%)
45.3%
3,099
3,228
3,360
2,867
2,961
39.1%
36.3%
37.6%
36.6%
Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
Q2 FY23
Q3 FY23
Q4 FY23
Q1 FY24
Q2 FY24
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
Finance cost
Net Income
Expenses
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
Q2 FY24 Q1 FY24
Q2 FY23
QoQ
YoY
H1FY24
H1FY23
YoY
540
60
11
610
30
640
228
412
112
5
38
155
258
90
168
42
125
490
13
9
512
16
527
200
328
103
3
32
139
189
29
161
41
119
276
6
15
298
12
310
91
219
72
2
35
109
110
26
84
29
55
10%
370%
15%
19%
91%
21%
14%
26%
9%
45%
18%
12%
36%
215%
4%
3%
5%
95%
845%
(29)%
105%
140%
106%
149%
89%
56%
93%
11%
42%
134%
250%
99%
45%
127%
1,029
73
20
1,122
46
1,168
427
740
215
8
71
294
447
119
328
83
245
520
10
17
548
21
569
188
381
151
5
65
220
161
377
(217)
(52)
(165)
98%
601%
16%
105%
117%
105%
127%
94%
42%
69%
10%
33%
178%
(69)%
16
Sep 30, 2023 Mar 31, 2023
LIABILITIES & EQUITY (₹ Cr)
Sep 30, 2023 Mar 31, 2023
Consolidated Balance Sheet
ASSETS (₹ Cr)
Financial Assets
Cash and bank balances
Loan Portfolio
Investments
Other financial assets
1,850
8,862
129
145
1,005
7,760
189
122
Total Financial Assets
10,986
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
-
91
121
28
5
17
21
1
40
197
25
5
17
22
283
11,269
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
4,000
3,743
20
86
7,849
4
15
41
60
71
3,288
3,359
0.3
3,360
11,269
3,369
2,685
20
155
6,230
4
6
43
54
71
3,028
3,099
0.2
3,099
9,383
17
Annexure
18
Positive ALM and Stable Ratings
Positive ALM (₹ Cr)*
Credit Rating – Spandana Sphoorty Financial Ltd
3,286
3,137
2,858
2,553
2,024
2,185
1,504
1,308
1,028
508
448
504
202
79
84
160
upto 1m 1m to 2m 2m to 3m 3m to 6m 6m to 12m 1Y to 3Y 3Y to 5Y Over 5Y
Assets
Liabilites
•
•
Positive ALM on cumulative basis with assets maturing faster than liabilities
Closing Cash and Bank balance (₹1,850 Cr as on 30 Sep’23)
Rating Agency
Rating Instrument
Rating
Year
ICRA
Bank Facilities / NCD’s / MLD’s
A Stable
Aug 2023
India-Ra
Bank Facilities / NCD’s/ MLD’s
A Stable
Aug 2022
CPs
A1
Jan 2023
CRISIL
Bank Facilities
A Stable
Sep 2022
Credit Rating – Criss Financial Ltd
Rating Agency
Rating Instrument
Rating
Year
ICRA
Bank Facilities / MLD’s
BBB+ Stable Aug 2023
India-Ra
Bank Facilities
BBB+ Stable Mar 2023
* Standalone
19
Well diversified presence
AUM concentration*
District level concentration
State
Odisha Madhya Pradesh Karnataka Andhra Pradesh Maharashtra Bihar Jharkhand Chhattisgarh Rajasthan Gujarat Uttar Pradesh Telangana West Bengal Haryana Kerala Tamil Nadu Goa Pondicherry Uttarakhand Total
% of AUM
Largest
1.9%
Q2FY24 15% 15% 11% 11% 10% 9% 7% 5% 5% 4% 4% 1% 1% 1% 0.3% 0.3% 0.2% 0.1% 0.03% 100%
Q2FY23 16% 17% 11% 11% 9% 7% 6% 6% 5% 5% 3% 1% 0.6% 1% 1% 0.1% 0.3% 0.1% - 100%
Top 5
7.8%
Top 10
13.4%
Top 20
22.8%
Others
77.2%
Branch level concentration
Largest
0.3%
Top 5
1.2%
Top 10
2.2%
Top 20
4.3%
Others
95.7%
20
* Standalone
Metrics over the years
AUM (₹ Cr)
Disbursement (₹ Cr)
8,157
6,829
6,581
9,784
8,511
4,372
FY19
FY20
FY21
FY22
FY23
Net Income* (₹ Cr)
1,113
1,082
940
1,019
691
FY19
FY20
FY21
FY22
FY23
*Net Income = Total income less finance cost
H1 FY24
740
H1 FY24
8,004
8,125
6,426
4,969
3,373
FY19
FY20
FY21
FY22
FY23
PAT (₹ Cr)
352
312
145
70
12
FY19
FY20
FY21
FY22
FY23
4,177
H1 FY24
245
H1 FY24
21
Rapid branch expansion over past 9 months
Borrowers (in L)
Employees
Borrowers / Branch & LO
25.7
24.6
24.5
27.0
23.5
22.6^
12,677
10,016
8,224 8,644 8,763
6,655
2,658 2,541
697
590
2,324
2,097
1,840 1,795
432
382
318
317
3000
2500
2000
1500
1000
500
0
FY19 FY20 FY21 FY22 FY23
H1 FY24
^Loans outstanding of ~6 L borrowers written-off
FY19 FY20 FY21 FY22 FY23
H1 FY24
Borrowers / Branch
Loan Officers*
Branches
AUM / Branch & LO (₹ Cr)
FY19 FY20 FY21 FY22 FY23
H1 FY24 Borrowers / LO
8,504
7,103
5,665 6,157
1,010 1,052 1,120
925
1,502
1,227
4,350
3,526
FY19 FY20 FY21 FY22 FY23
H1 FY24
*No. of Loan officers excluding trainees
FY19 FY20 FY21 FY22 FY23
H1 FY24
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
4.7
1.2
7.8
6.8
1.6
1.4
6.9
6.5
5.9
1.1
1.2
1.2
FY19 FY20 FY21 FY22 FY23
H1 FY24
AUM / Branch (₹ Cr)
AUM / LO (₹ Cr)
850
750
650
550
450
350
250
150
50
-50
3.0
2.5
2.0
1.5
1.0
0.5
0.0
22
Thank you!
Investor Relations
Strategic Growth Advisors Pvt. Ltd Abhishek Shah / Krunali Shah +91 99306 51660 / +91 98209 87564
Spandana Sphoorty Financial Limited