Spandana’s PAT grows 127%YoY to ₹125 Cr in Q2FY24. Income up by 106%, AUM grows 69% to ₹9,784 Cr.

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Spandana Sphoorty Financial Limited (NSE: SPANDANA, BSE: 542759) (“Spandana”) announced its unaudited financial results for the quarter ended Sep 30, 2023 today. The growth reported across metrics is in-line with management’s targets for the current year.

Highlights for Q2FY24:

  • AUM                                 – ₹9,784 Cr; +69% over Q2FY23 (₹5,782 Cr)
  • New Customer Acquisition –3.5 Lacs vs Q2 FY23 – 1.2 L, YoY growth 183%;
  • Disbursement                                 – ₹2,513 Cr; +81% over Q2FY23 (₹1,391 Cr)
  • GNPA                                 – 1.40% (1.63% in Q1FY24)
  • NNPA                                 – 0.42% (0.49% in Q1FY24)
  • Income                                                 – ₹640 Cr;+106% over Q2FY23 (₹310 Cr)
  • Net Income                                 – ₹412 Cr; +89% over Q2FY23 (₹219 Cr)
  • NIM                                 – 14.1% vs. 13% in Q2FY23
  • PAT                                                 – ₹125Cr; +127% over Q2FY23 (₹55 Cr)

Mr. Shalabh Saxena, CEO and Managing Director, while announcing the results stated, “During the quarter our AUM grew 69% YoY to ₹9,784 Cr with disbursements at ₹2,513 Cr which was a growth of 81% YOY. We added 3.5L new borrowers taking our total borrower count to 27 Lakhs, a growth of 24%. All the financial parameters showed a positive trend with PAT increasing 127% to ₹125 Cr, GNPA and NNPA further improving to 1.40% and 0.42% respectively from 1.63% and 0.49% respectively at the end of Q1FY24.Asides, we have added 292 branches during the calendar year, taking the count of operational branches to 1,407.We will be operationalizing additional 110 branches in the next 3 months, thus taking thebranch strength to over 1,500. During the quarter, we soft launched Nano enterprise loans for shopkeepers & retailers on the back of Loan Against Property which we launched in Q1. We have seen good demand for these products and we will scale up these business lines as we progress.As a management team, we are comfortable with the progress made thus far and are confident of achieving our goals as set under the Vision – 2025.”

Highlights forthe Quarter 2, FY2024 are:

  1. AUM – ₹9,784 Cr a 69% growth over Q2FY23 (₹5,782 Cr) and 11% growth over Q1FY24 (₹8,848 Cr).
  2. Disbursement &New CustomerAcquisition – New customer acquisition led growth continues with about 3.5 lakh new customers added during the quarter.
    1. Disbursement was₹2,513 Cr (Q2 FY23 – ₹1,391 Cr), YoY growth 81%; (Q1FY24 – ₹1,664 Cr), QoQ growth of 51%.
    2. New customer addition during the quarter was 3.5 Lacs (Q2 FY23 – 1.2 L) aYoY growth of 183% and a QoQ growth of 34%(Q1FY24 – 2.6L)
    3. The borrower count at the end of quarter was about 27L a growth of 24% over Q2FY23 (~22L); ~12% growth over Q1FY24 (~24L)
  3. Borrowings-
    1. ₹3,191 Cr was mobilized in Q2 FY24 v/s ₹1,080 Cr in Q2FY23, a growth of 195%.
  4. Asset Quality –
    1. GNPA – 1.40% (Q1 FY24 – 1.63%); &7.37% as on 30-Sep-22
    2. NNPA – 0.42% (Q1 FY24 – 0.49%); &3.84% as on 30-Sep-22
    3. PCR – Provision Coverage Ratio is 70.26%
  5. Collection Efficiency-
    1. Net collection efficiency was at 97.7% vs. 98.1% in Q1FY24.
    2. Gross Collection Efficiency at 100.3%
  6. Financial Performance YoY-
    1. Income: ₹640 Cr (₹310 Cr in Q2FY23) – growth of 106% YoY
    2. Net income: ₹412 Cr (₹219 Cr in Q2FY23) – growth of 89% YoY
    3. Yield: 24.5% (19.5% in Q2FY23) – improvement of 496 bps
    4. NIM of the portfolio is 14.1% improvement of 113 bps over Q2 of previous year.
    5. Pre-Provision Operating Profit (PPOP): ₹258 Cr (₹110 Cr in Q2FY23) – growth of 134%
    6. Profit after tax: ₹125Cr (₹55 Cr –Q2FY23) – growth of 127%