Conference Call with Spandana Sphoorty Financial Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript. Management in attendance: Shalabh Saxena and senior team
Spandana Sphoorty Financial announced Q4FY22 Result: Spandana Sphoorty announces FY22 Results, ends fiscal year with successful transition and a positive growth trajectory Debt Equity Ratio: low 1.2X leverage Net profit margin: healthy 8.1% ROA and ROE: 6.9% and 16.6% Provision Coverage: 10.6% on On-book portfolio (648 crores) Net NPA: 6%, in line with COVID-impacted industry benchmarks CRAR – robust 51.09%, providing significant balance sheet cushion and runway for future growth Mr. Shalabh Saxena- Managing Director and CEO while commenting on the performance and future outlook of the Company said: FY 22 was a watershed year and it is a matter of great pride that we successfully managed the various disruptions during the year. With successful transition of management, a reasonably good Quarter 4 (on key business parameters) and various efforts undertaken to strengthen the fundamentals of business, we feel confident of charting a quality growth path for Spandana in the coming years. As a team we have articulated a Vision 2025 for the company where we are planning to scale up our business to an AUM of 15,000 crore levels (~2x from the present) in the next 3 years. Our immediate 5 priorities will be People: Reinforce the middle & Senior management team Strengthen Governance, Risk & Control with added focus on refining Processes Focus on Customer Acquisition led business growth while ensuring retention of existing customers Technology scale up to deliver an end-to-end paperless customer experience Customer led initiatives with emphasis on Product, Service & meeting their life cycle needs. With a clear focus on rural India, we are confident of increasing our market share by riding on the significant anticipated growth in these markets. The entire organization is taking incremental steps each day to converge on achieving the articulated objectives defined in the Vision 2025 for the company. Result PDF
Spandana Sphoorty Financial declares Q4FY22 result: The focus of the new management has been to consolidate, strengthen and scale up business to ensure quality growth. Spandana’s consolidated disbursement was Rs. 864 crores in the month of March’22 alone, which was in-line with pre-Covid levels. The total disbursement for Q4 FY22 was Rs. 1,385 crores, demonstrating the scalability of the new IT system. In addition to disbursement-led growth, the management is focused on maintaining a healthy collection efficiency and strong asset quality. Consolidated total AUM as of March’22 was approximately Rs. 6,533 crores. About 44% of the on-book AuM was generated through new disbursements in FY22 and has a collection efficiency of ~107% and ~110% in the quarter ended March’22 and for the month of March’22 respectively. The total non-restructured (on book) portfolio is Rs. 5,046 crores. Collection efficiency (including arrears) for this portfolio was ~100% for quarter ended Mar’22 and ~107% for the month of Mar’22, respectively. Only 15% of the on-book AuM (Rs. 994 crores) is the restructured book, wherein no moratorium was given to the customers in order to be conservative. Since microfinance customers need time to regularize their income cycles, this book took some time to regularize. Collection efficiency of this book was ~64% for the quarter ended March’22 and ~74% for the month of March ’22 alone. The company is carrying total balance sheet provisions of approximately Rs. 621 crores (equivalent to ~10.3% of the on-book portfolio), which is sufficient to cover any potential risk. Result PDF