Spandana Sphoorty Financial Ltd (SSPL), a leading microfinance lender, reported a consolidated loss of ₹216 crore in Q2 FY25, impacted by a significant rise in provisions for stressed loans. This marks a stark contrast to the consolidated net profit of ₹125 crore reported in the same period last year.
Key Financial Highlights:
- Net Interest Income (NII): Increased by 9% year-on-year to ₹341 crore in Q2 FY25, compared to ₹312 crore in Q2 FY24.
- Net Interest Margins (NIMs): Declined to 12.8% from 14.1% in Q2 FY24.
- Impairment on Financial Instruments: Surged nearly six-fold to ₹516.41 crore, up from ₹90.5 crore a year ago.
CEO and Managing Director Shalabh Saxena attributed the challenging quarter to sector-wide headwinds. Operations were affected by extended election periods, intense heat waves, and disruptive weather patterns including heavy rainfall and flooding. Additionally, issues such as high attrition rates, localized debt relief campaigns like the Karza Mukti Abhiyan, and increased leverage among borrowers also impacted the company’s performance.
This quarter’s results underscore the pressures facing the microfinance sector, making SSPL a stock to watch in the coming sessions.
