Spandana Sphoorty Financial Ltd (SSPL) saw its shares fall by 13% today following the announcement of a substantial consolidated loss of ₹216 crore for Q2 FY25, attributed to a sharp increase in provisions for stressed loans. This is a stark shift from the ₹125 crore profit reported in the same quarter last year.
Key Financial Highlights:
- Net Interest Income (NII): Grew 9% YoY to ₹341 crore, up from ₹312 crore in Q2 FY24.
- Net Interest Margins (NIMs): Declined to 12.8% from 14.1% YoY.
- Impairment on Financial Instruments: Jumped nearly six-fold to ₹516.41 crore, compared to ₹90.5 crore a year ago.
Management’s Take:
CEO and Managing Director Shalabh Saxena cited sector-wide headwinds, including extended election periods, severe weather conditions like intense heat waves, and flooding, as factors that disrupted operations. Other challenges included high employee attrition, local debt relief drives, and increased borrower leverage, all contributing to the challenging quarter.
Spandana’s performance reflects the broader issues impacting the microfinance sector, leading to a significant impact on investor sentiment and a sharp fall in the company’s stock today.
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