Shares of Spandana Sphoorty Financial Ltd plunged to ₹324.20, locking in a 5% lower circuit on Friday, January 24, 2025, following the announcement of a dismal Q3 FY25 financial performance. The microfinance lender reported a net loss of ₹393.9 crore, a sharp contrast to the net profit of ₹127 crore it posted in the corresponding quarter of FY24.
Key Financial Highlights:
- Net Loss: ₹393.9 crore compared to a net profit of ₹127 crore in Q3 FY24.
- Total Income: ₹573 crore, down 13% YoY.
- Net Interest Income (NII): ₹265 crore, a 14% YoY decline.
- AUM: ₹8,936 crore, a 14% YoY decrease from ₹10,404 crore in Q3 FY24.
- Disbursements: ₹1,443 crore, down 43% YoY from ₹2,543 crore in Q3 FY24.
Operational Metrics:
- Asset Quality:
- Gross NPA: 4.85%
- Net NPA: 0.98%
- Provision Coverage Ratio: 80%
- Collection Efficiency:
- Gross: 92.4%, down from 93.7% in Q2 FY25.
- Net: Flat at 90.7% QoQ.
The company’s borrowings dropped significantly, down 62% YoY to ₹872 crore, reflecting its calibrated disbursement strategy to manage liquidity amidst sectoral challenges.
Management Commentary:
CEO and Managing Director Shalabh Saxena remarked, “The microfinance industry in India has been going through a challenging phase in the current financial year. Factors such as borrower leverage, dilution of the JLG model, and poor centre meeting attendance continue to impact the sector.”
Market Reaction:
Investors reacted negatively to the company’s significant losses, higher credit costs, and declining disbursements, causing the stock to hit a 5% lower circuit in Friday’s trading session.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
