Spandana Sphoorty Financial Limited · NSE:SPANDANA

Spandana Sphoorty Financial — Q3 FY2023 Earnings Presentation

42 slides from Spandana Sphoorty Financial's earnings presentation, Jan 31, 2023

  1. Slide 1: Outcome of Board Meeting cover letter

    Ref: SSFL/Stock Exchange/2022-23/138 Date: January 31, 2023 To To BSE Limited, National Stock Exchange of India Limited, Department of Corporate Services Listing Department P. J. Towers, 25th Floor, Exchange Plaza, C-1, Block G Dalal Street, BandraKurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 4

  2. Slide 2: Auditor's Review Report on Standalone Results

    Walker Chandiok &Co LLP Walker Chandiok & Co LLP 11th Floor, Tower II, One International Center, S B Marg, Prabhadevi (W), Mumbai - 400013 Maharashtra, India T +91 22 6626 2699 F +91 22 6626 2601 Independent Auditor’s Review Report on Unaudited Standalone Quarterly Financial Results and Year to Date

  3. Slide 3: Auditor's Review Report (continued)

    Spandana Sphooty Financial Limited Independent Auditor’s Review Report on Unaudited Standalone Quarterly Financial Results and Year to Date Results of the Non- Banking Financial Company (‘NBFC’) pursuant to the Regulation 33 and Regulation 52 read with Regulation 63 of the SEBI (Listing Obligations

  4. Slide 4: Standalone Financial Results Q3 FY23

    ==> y SPANDANA ed od SPANDANA SPHOORTY FINANCIAL LIMITED Statement of Unaudited Standalone Financial Results for the Quarter and nine months ended December 31, 2022 (Rupees in millions unless otherwise stated) CIN : L65929TG2003PLC040648 Galaxy, Wing B, 16th Floor, Plot No. 1, Sy No. 83/1, Hyderabad

  5. Slide 5: Notes to Standalone Financial Results

    Zw*R SPANDANA SPANDANA SPHOORTY FINANCIAL LIMITED (CIN: L659297G2003PLCD40648) Statement of Unaudited Standatone Financial Results for the Quarter and Nine months ended December 31, 2022 Notes: 1 10 These financial results have been prepared in accordance with the recognition and measurement princip

  6. Slide 6: Notes to Standalone Financial Results (continued)

    —_— “= AN SPANDANA iL 2 14 Notes: SPANDANA SPHOORTY FINANCIAL LIMITED (CIN: L65929TG2003PLC040648) Statement of Unaudited Standalone Financial Results for the Quarter and Nine months ended December 31, 2022 ‘The Company operates in a single business segment ie. financing, since the nature of the loa

  7. Slide 7: Annexure-1: Regulation 52(4) Disclosures

    —_— S EE ~~ SPANDANA SPANDANA SPHOORTY FINANCIAL LIMITED (CIN: L65929TG2003PLC040648) Annexure-1 (Rupees in millions unless otherwise stated) Disclosures required by Regulation 52(4) of SEB! (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the Quarter and Nine months ended Dec

  8. Slide 8: Auditor's Review Report on Consolidated Results

    Walker Chandiok &Co LLP Walker Chandiok & Co LLP 11th Floor, Tower Il, One International Center, S B Marg, Prabhadevi (W), Mumbai - 400013 Maharashtra, India T +91 22 6626 2699 F +91 22 6626 2601 Independent Auditor's Review Report on Unaudited Consolidated Quarterly Financial Results and Year to Da

  9. Slide 9: Auditor's Review Report on Consolidated Results (continued)

    Spandana Sphoorty Financial Limited Independent Auditor’s Review Report on Unaudited Consolidated Quarterly Financial Results and Year to Date Results of the Non- Banking Financial Company (‘NBFC’) pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation

  10. Slide 10: List of entities included in the Statement

    Spandana Sphoorty Financial Limited Independent Auditor’s Review Report on Unaudited Consolidated Quarterly Financial Results and Year to Date Results of the Non- Banking Financial Company (‘NBFC’) pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation

  11. Slide 11: Consolidated Financial Results Q3 FY23

    SPANDANA SPANDANA SPHOORTY FINANCIAL LIMITED (CIN: L65929TG2003PLC040648) Statement of Unaudited Consolidated Financial Results for the Quarter and nine months ended December 31, 2022 (Rupees in millions uniess otherwise stated) Quarter ended Nine months ended Year ended Sr.No,| Particulars 31-Dec-2

  12. Slide 12: Notes to Consolidated Financial Results

    SPANDANA SPANDANA SPHOORTY FINANCIAL LIMITED (CIN: L65929TG2003PLC040648) Statement of Unaudited Consolidated Financial Results for the Quarter and Nine months ended December 31, 2022 Notes: 1 Place: Hyderabad Mat Date: January 31, 2023 These consolidated financial results of the Spandana Sphoorty F

  13. Slide 13: Disclosure under Regulation 54(2) and 54(3)

    Ref: SSFL/Stock Exchange/2022-23/139 Date: January 31, 2023 To To BSE Limited, National Stock Exchange of India Limited, Department of Corporate Services Listing Department P. J. Towers, 25th Floor, Exchange Plaza, C-1, Block G Dalal Street, BandraKurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 4

  14. Slide 14: Security cover for secured debt securities

    Spandana Sphoorty Financial Limited Limited Review for the quarter and period ended 31 December, 2022 (Rupees in millions unless otherwise stated) Column B Column C Column D Column E Column F Column Column H Column I Column Column K Column L Column Column N Column Column A G J M O Exclusive Charge E

  15. Slide 15: Regulation 32 and 52(7) cover letter

    Ref: SSFL/Stock Exchange/2022-23/140 Date: January 31, 2023 To To BSE Limited, National Stock Exchange of India Limited, Department of Corporate Services Listing Department P. J. Towers, 25th Floor, Exchange Plaza, C-1, Block G Dalal Street, BandraKurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 4

  16. Slide 16: Utilisation of proceeds of non-convertible securities

    Statement indicating utilisation and deviation/ variation in the use of proceeds of issue of listed Non-convertible Securities for the quarter ended December 31, 2022 [Regulations 52(7) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

  17. Slide 17: Statement of deviation/variation in use of proceeds

    B. Statement of deviation/ variation in use of Issue proceeds: Particulars Remarks Name of listed entity Spandana Sphoorty Financial Limited Mode of Fund Raising Public issue/ Private placement Type of instrument Non-convertible Securities (Debentures) Date of raising funds 20-10-2022 09-11-2022 09-

  18. Slide 18: Deviation/variation statement (continued)

    Original Object Modified Original Modified Funds utilised Amount of Remarks, if any object, if any allocation allocation, if deviation/ any variation for the quarter according to applicable object (in Rs. crore and in %) On-lending NA 60.00 NA 60.00 0 NA On-lending NA 25.00 NA 25.00 0 NA On-lending

  19. Slide 19: Press release cover letter

    Ref: SSFL/Stock Exchange/2022-23/141 Date: January 31, 2023 To To BSE Limited, National Stock Exchange of India Limited, Department of Corporate Services Listing Department P. J. Towers, 25th Floor, Exchange Plaza, C-1, Block G Dalal Street, BandraKurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 4

  20. Slide 20: Spandana reports 29% QoQ increase in PAT

    Spandana reports 29% QoQ increase in PAT; Disbursement increases by 70% with 19% growth in AUM as Asset Quality Improves Hyderabad, January 31, 2023: Spandana Sphoorty Financial Limited (NSE: SPANDANA, BSE: 542759) (“Spandana”) announced its unaudited financial results subject to limited review for

  21. Slide 21: About Spandana Sphoorty; Disclaimer

    About Spandana Sphoorty: Spandana Sphoorty Financial Ltd. is a rural-focused non-banking financial company and a microfinance lender (NBFC-MFI) with a geographically diversified presence in India. The company offers income generating loans under the joint liability group (JLG) model, predominantly t

  22. Slide 22: Earnings presentation cover letter

    Ref: SSFL/Stock Exchange/2022-23/142 Date: January 31, 2023 To To BSE Limited, National Stock Exchange of India Limited, Department of Corporate Services Listing Department P. J. Towers, 25th Floor, Exchange Plaza, C-1, Block G Dalal Street, BandraKurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 4

  23. Slide 23: Spandana Sphoorty Financial Limited Q3 FY23

    Spandana Sphoorty Financial Limited ….Committed to low-income households Q3 FY23 Investor Presentation 18 Years

  24. Slide 24: Safe Harbor

    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 f

  25. Slide 25: Q3 FY23 Business Performance

    Q3 FY23 Business Performance

  26. Slide 26: Q3 FY23: Increased momentum across all parameters

    Q3 FY23: Increased momentum across all parameters 19% QoQ growth in AUM Calibrated Start of Growth Engine Improving Asset Quality Client Addition Disbursement AUM 1 – 90 DpD GNPA NNPA 2.19 L ₹2,361 Cr ₹6,852 Cr 2.6% 5.3% 2.5% 77% QoQ 70% QoQ 19% QoQ 310 bps QoQ 210 bps QoQ 130 bps QoQ Healthy Fund R

  27. Slide 27: Positive movement across all key operational growth vectors

    Positive movement across all key operational growth vectors No. of borrowers AUM per Branch (In lakhs) (In ₹ Cr) +3.2% +10.9% 6.1 23.5 21.3 21.7 22.4 5.9 87% Rural 5.5 13% Urban 5.3 Mar-22 Jun-22 Sep-22 Dec-22 Mar-22 Jun-22 Sep-22 Dec-22 Number of Employees Branch count No. of Employees 8,763 8,294

  28. Slide 28: New member acquisition drives growth

    New member acquisition drives growth 77% growth over Q2; 46% loan to new members Split of Disbursements (loan count) Q2FY23 Q3FY23 46% 46% 54% 54% Existing member loans New member loans New members acquired (in ‘000) +77% 219 123 101 106 Q4FY22 Q1FY23 Q2FY23 Q3FY23 6

  29. Slide 29: Strong momentum in disbursement

    Strong momentum in disbursement ~70% increase over Q2 Disbursement (in ₹ Cr) +70% 2,361 1,385 1,391 1,320 Q4FY22 Q1FY23 Q2FY23 Q3FY23 7

  30. Slide 30: Improvement in current book from 68.4% to 92.1%

    Improvement in current book from 68.4% to 92.1% Collection efficiency continues to be stable AUM & Current Book Collection Efficiency (Incl. Arrears) Post Apr-21 48% 70% 82% 92% (% of AUM) 95.0% 7,000 18.5% 106.1% 6,852 102.4% 102.1% 101.3% 6,800 92.1% 90.0% 6,600 86.9% 85.8% 6,400 85.0% 6,200 6,089

  31. Slide 31: Consistent improvement in (1 to 90) book

    Consistent improvement in (1 to 90) book… 1 to 90 book down by 54% QoQ 14.4% 1 to 90 Book 8.4% 1 to 30 DPD 7.5% 4.0% 5.7% 2.9% 2.6% 1.2% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 31 to 60 DPD 61 to 90 DPD 3.4% 2.6% 1.6% 1.9% 1.4% 1.5% 0.9% 0.8% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23

  32. Slide 32: GNPA & NNPA reduction

    … accompanied by GNPA & NNPA reduction… 17.2% 8.9% 7.4% 6.7% 5.3% 3.8% 3.2% 2.5% Q4FY22 Q1FY23 Q2FY23 Q3FY23* GNPA NNPA • Provisions for NPA amounts to ₹191 Cr • Total provisions of ₹272 Cr (4.0% of AUM) on Balance Sheet – sufficient to cover any risk in the portfolio * Post Sale of ₹117 Cr portfoli

  33. Slide 33: Adequate provision on the Balance Sheet

    … with adequate provision on the Balance Sheet Pre-Apr’21 book (7.7% of AUM) contributes 70% of GNPA Q3 FY23 Q2 FY23 Provisioning & Coverage AUM AUM % AUM ECL Provision Coverage % AUM ECL Provision Coverage (₹ Cr) (₹ Cr) Stage 1 6,390 93.25% 41 0.63% 5,190 89.76% 32 0.61% Current 6,311 92.10% 39 0.6

  34. Slide 34: Lender support continues to be strong

    Lender support continues to be strong ~98% growth in fund mobilization; 8 new lenders onboarded in Q3FY23 Total Borrowings (in ₹ Cr) +98% 2,138 1,080 691 738 308 155 79 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 • Marginal cost of borrowing stable at 12.66% for Q3FY23 vs. 12.64% in Q2FY23 • We

  35. Slide 35: Diversified borrowing profile; Capital Adequacy at ~39%

    Diversified borrowing profile; Capital Adequacy at ~39% Diversified Funding Mix Net-worth and Capital Adequacy (As on 31-Dec-22) Capital 42.4% 42.4% 46.8% 51.1% 47.9% 45.3% 39.1% Adequacy Capital infusion of Net worth (Rs. crs) ₹ 290 Cr 8% 3,088 2,961 2,817 2,867 2,743 2,763 2,733 39% ₹5,199 Cr 33%

  36. Slide 36: Financials showing a healthy movement (1/2)

    Financials showing a healthy movement (1/2) Total Income (₹ Cr) Net Interest Income (₹ Cr) Yield# (%) Cost of Borrowings (%) +21% +16% +200 bps 11.8% 254 21.5% 11.5% 375 10.8% 11.2% 310 219 19.5% 299 191 259 17.6% 162 16.4% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23 Q2FY23

  37. Slide 37: Financials showing a healthy movement (2/2)

    Financials showing a healthy movement (2/2) PPOP & PBT (₹ Cr) PAT (₹ Cr) +28% +29% 71 141 96 29 55 110 84 58 38 51 -301 Q4FY22 Q1FY23 Q2FY23 Q3FY23 -220 Q4FY22 Q1FY23 Q2FY23 Q3FY23 PPOP PBT ROA (%) ROE (%) +210 bps +80 bps 3.8% 4.5% 7.7% 9.8% 1.8% 4.1% -14.2% -29.8% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY2

  38. Slide 38: Consolidated Income Statement

    Consolidated Income Statement Particulars (₹ Cr) Q3 FY23 Q2 FY23 Q3 FY22 Revenue from Operations Interest income 337.7 276.5 328.5 Net gain on fair value changes 8.4 6.3 10.1 Other Income 8.5 14.9 7.5 Total income from operations 354.7 297.7 346.1 Non-operational Income 20.3 12.5 3.7 Total income 37

  39. Slide 39: Consolidated Balance Sheet

    Consolidated Balance Sheet Net-worth increased to ₹2,961 Cr ASSETS (₹ Cr) Dec 31, 2022 Mar 31, 2022 LIABILITIES & EQUITY (₹ Cr) Dec 31, 2022 Mar 31, 2022 Financial Liabilities Financial Assets Debt Securities 2,914.5 1,778.2 Cash and cash equivalents 1,024.6 727.2 Borrowings (Other than Debt Securit

  40. Slide 40: Annexure

    ‘~™ => rN Annexure

  41. Slide 41: Stable credit rating with comfortable liquidity position

    Stable credit rating with comfortable liquidity position Positive ALM^ (₹ Cr) Rating Instrument Rating Agency Rating Year Assets CRISIL/ A Stable/ Bank Facilities / NCD’s Sep 2022 2,560 Liabilites ICRA A- Stable 2,102 Bank Facilities / NCD’s/ MLD’s India-Ra A Stable Aug 2022 1,802 1,585 Bank Facilit

  42. Slide 42: Thank You

    Spandana Sphoorty Financial Limited ….Committed to low-income households THANK YOU Name/Title – Q2FY23 18 Years

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