Q1 2025 Spandana Sphoorty Financial Ltd Earnings Call Transcript
Key Points
- Spandana Sphoorty Financial Ltd (BOM:542759) reported a 47% YoY increase in net interest income to INR425 crores.
- The company received two rating upgrades: India Ratings upgraded to A+ Stable from A Stable, and ICRA upgraded to A+ Stable from A Positive.
- Disbursement for the quarter was INR2,283 crores, showing a 37% YoY growth.
- The LAP and Nano loans business under Criss Financial Limited crossed INR100 crores, delivering a yield of 23.75% with almost 100% collection efficiency.
- The company has implemented several measures to improve portfolio quality, including stopping new-to-credit customers, pausing new member acquisition in 14% branches, and enhancing bench strength in 60% branches by 20%.
- The company experienced a significant increase in GNPA to 2.6% from 1.63% a year ago, and NNPA increased to 0.53%.
- High attrition rates in key geographies (Madhya Pradesh, Rajasthan, Gujarat, Maharashtra, and Telangana) affected operations, with branch manager attrition at 10.5% in these states.
- The severe heat wave and election disruptions led to higher absenteeism and operational challenges, impacting portfolio quality.
- Credit cost guidance for the year has been increased to 3.75% from the previously guided 2.5%, indicating expected further slippages.
- The company has reduced its AUM growth guidance for the fiscal year, reflecting the operational challenges faced in Q1.
Ladies and gentlemen, good day, and welcome to the Spandana Sphoorty Financial Limited Q1 FY25 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Shalabh Saxena, MD and CEO of Spandana Sphoorty Financial Limited. Thank you and over to you, sir.
Thank you very much. Good afternoon to all of you. Thank you for your interest in Spandana and for taking time out to join us on this call.
While the results have been uploaded, I am presenting to you the why of the results. Obviously, the outcome has been below par compared to the past 8 quarters
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