Spandana Sphoorty Financial Ltd Share Price – NSE /  BSE

Finance, Small Cap

Spandana Sphoorty Financial has received reaffirmation in credit rating and revision in outlook from ICRA as under:

Long term fund based term loan (Rs 2105 crore) - [ICRA]A+ (Negative); reaffirmed and outlook revised to Negative from Stable

Non convertible debentures (Rs 423 crore) - [ICRA]A+ (Negative); reaffirmed and outlook revised to Negative from Stable

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Ashapura Minechem Ltd, Ideaforge Technology Ltd, Firstsource Solutions Ltd and Symphony Ltd are among the other losers in the BSE's 'A' group today, 29 October 2024.

Spandana Sphoorty Financial Ltd tumbled 15.66% to Rs 388.1 at 14:47 IST.The stock was the biggest loser in the BSE's 'A' group.On the BSE, 2.62 lakh shares were traded on the counter so far as against the average daily volumes of 27745 shares in the past one month.

Ashapura Minechem Ltd lost 10.67% to Rs 217.35. The stock was the second biggest loser in 'A' group.On the BSE, 3.97 lakh shares were traded on the counter so far as against the average daily volumes of 36529 shares in the past one month.

Ideaforge Technology Ltd crashed 9.41% to Rs 550. The stock was the third biggest loser in 'A' group.On the BSE, 1.47 lakh shares were traded on the counter so far as against the average daily volumes of 19280 shares in the past one month.

Firstsource Solutions Ltd fell 8.21% to Rs 342.15. The stock was the fourth biggest loser in 'A' group.On the BSE, 8.53 lakh shares were traded on the counter so far as against the average daily volumes of 2.77 lakh shares in the past one month.

Symphony Ltd slipped 7.89% to Rs 1502.4. The stock was the fifth biggest loser in 'A' group.On the BSE, 32981 shares were traded on the counter so far as against the average daily volumes of 19328 shares in the past one month.

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Total income fell by 4% YoY to Rs 707 crore during the quarter. Net interest income (NII) rose by 9% to Rs 341 crore in Q2 FY25 over Q2 FY24.

Pre-provision operating profit (PPOP) declined by 12% to Rs 228 crore in Q2 FY25 from Rs 258 crore in Q2 FY24.

Impairment charge on financial instruments for the September’24 quarter was Rs 516 crore, which is significantly higher as compared with the impairment charge of Rs 90 crore recorded in the same period last year.

Accordingly, the company reported a pre-tax loss of Rs 289 crore in Q2 FY25 as against a pre-tax profit of Rs 168 crore in Q2 FY24.

GNPA ratio was at 4.86% as on 30 September 2024 as against 2.60% as on 30 June 2024. NNPA ratio stood at 0.99% as on 30 September 2024 as against 0.53% as on 30 June 2024. Provision coverage ratio as on 30 September 2024 was at 79.66%.

Disbursements for the quarter were Rs 1,514 crore as compared to Rs 2,512 crore in Q2 FY24, decline of 40% on YoY basis. AUM as on 30 September 2024 was Rs 10,537 crore, up 8% YoY.

Shalabh Saxena, CEO and managing director, said: Microfinance sector has been facing multiple headwinds over the last two quarters. The operations that were initially impacted by long drawn elections and intense heat wave during summers of 2024 were further disrupted by heavy rainfall and floods in certain states during the months of July to September 2024.

A number of other issues like higher-than-normal attrition levels, localized drives like Karza Mukti Abhiyan and increasing leverage of borrowers all had an impact on the sector.

Keeping all these factors in view, Spandana was cautious and very selective in its lending during the quarter. The focus during the quarter was on improving portfolio quality and serving existing customers.

The management team has taken up various measures to address the challenges including increasing bench strength, strengthening branch level controls, introducing technology and people interventions, refining of credit policy and focusing on softer aspects. With improvement in the operating environment and the various initiatives undertaken, we expect the situation to normalize in the coming quarters.”

Spandana Sphoorty Financial is a registered with the RBI as a non-banking financial company - micro finance institution (NBFC-MFI). The company is engaged in undertaking microfinance loans business in India in a joint liability group (JLG) and loan against property (LAP) lending model. The company provides micro loans with a tenure of 1-2 years to women borrowers from low-income households for income generation activities like agriculture, handlooms & handicrafts, cattle raring, cottage industries & micro entrepreneurial ventures like tailoring, grocery stores amongst others, education and healthcare.

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Net loss of Spandana Sphoorty Financial reported to Rs 216.32 crore in the quarter ended September 2024 as against net profit of Rs 125.19 crore during the previous quarter ended September 2023. Sales rose 12.47% to Rs 686.38 crore in the quarter ended September 2024 as against Rs 610.26 crore during the previous quarter ended September 2023.

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