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Non-banking Financial company Spandana Sphoorty Financial announced Q3FY24 results:
Financial Performance:
- Assets Under Management (AUM): Spandana's AUM has increased by 52% YoY to Rs 10,404 crore.
- Profit After Tax (PAT): PAT has seen a growth of 79%, reaching Rs 127 crore, with income rising by 75%.
Operational Performance:
- New Customer Acquisition: The company acquired 3.4 Lakh new customers, marking a YoY growth of 56%.
- Disbursements: Disbursements amounted to Rs 2,543 crore, an 8% increase from the previous year.
- Borrower Base: At the end of the quarter, the borrower count stood at approximately 29.6 Lakh, a 32% increase compared to the same quarter of the previous year.
Borrowings and Credit Rating:
- Borrowings: The company mobilized Rs 2,279 crore, an increase of 8% from the previous year.
- Credit Rating Outlook: ICRA updated Spandana's outlook to Positive, with a rating of A (Positive) from the previous A (Stable).
Asset Quality:
- Gross Non-Performing Assets (GNPA): GNPA is reported at 1.61%, showing a substantial improvement from 5.31% as on the same quarter of the previous year.
- Net Non-Performing Assets (NNPA): NNPA is at 0.48%, down from 2.52% YoY.
- Provision Coverage Ratio: The Provision Coverage Ratio stood at 70.45%.
Collection Efficiencies:
- Net Collection Efficiency: Reported at 97.2%, while Gross Collection Efficiency was at 99.9%.
Capital Adequacy:
- Capital to Risk (Weighted) Assets Ratio (CRAR): The CRAR at the end of December 2023 was 35%, indicating a strong capital position.
Shalabh Saxena, CEO and Managing Director, while announcing the results stated, “Q3FY24 was a quarter where Spandana crossed a milestone by reaching Rs 10,404 crore AUM. Aside from the PAT for 9 months ended December 2023 was an all-time high of Rs 372 crore in the history of Spandana surpassing the full-year profits of previous years.
End of the quarter we reached a borrower base of ~3 million while still maintaining good portfolio quality with GNPA at 1.61% & NNPA at 0.48%. We continue to execute on our strategy of customer acquisition-led growth as reflected in the healthy addition of about 3.4 L borrowers during the quarter thus taking the customer acquisition for this year to 9.5 Lac customers. Income was up 75% YOY to Rs 657 crore while PAT at Rs 127 crore for the quarter has seen an increase of 79% YoY.
Microfinance business presents a good opportunity for pan India players and as an established player we are cautiously optimistic about our progress in the current year. Both our Distribution & Liability franchisee is shaping well and we are taking the right steps to strengthen the organization for robust growth in the coming quarters.”
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