Spandana Sphoorty Financial Ltd

Spandana Sphoorty Financial announced that CARE Ratings has downgraded rating has downgraded rating to CARE A- (Stable), for existing instruments of the Company. Long term rating (Rs 800 crore) - CARE A- (Stable); downgraded from CARE A Negative Non convertible debentures (Rs 500 crore) - CARE A- (Stable); downgraded from CARE A Negative Non convertible debentures (Rs 200 crore) - CARE A- (Stable); downgraded from CARE A Negative Commercial paper (Rs 100 crore) - CARE A2+; downgraded from CARE A1 Powered by Capital Market - Live

Spandana Sphoorty Financial announced that ICRA Ratings has downgraded rating to A- (Negative), for existing instruments of the Company as detailed below: Long term fund based - Term loan (Rs 2105 crore) - ICRA A- (Negative); downgraded from ICRA A (Negative) Non convertible debentures (Rs 423 crore) - ICRA A- (Negative); downgraded from ICRA A (Negative)Powered by Capital Market - Live

Spandana Sphoorty Financial has received downgrade in credit ratings for non convertible debentures and bank loans to IND A-/ Negative from IND A/ Negative. Powered by Capital Market - Live

India Ratings and Research stated that the downgrade and 'negative' outlook reflect the continued stress on Spandana's asset quality during FY25, leading to pressure on its consolidated profitability, largely on account of elevated credit costs and operating expenses. Furthermore, the infusion of the confidence equity capital, as guided by the management during Q4 FY25, is yet to be completed. India Ratings notes that, as per the management's estimates, the capital infusion will be completed by Q2 FY26. Spandana is one of the companies that have been most impacted by the microfinance crisis, and the rating action reflects the significant losses reported by the company during FY25, higher than the India Ratings' estimates for the period, post the declaration of H1 FY25 financial performance and in line with the agency's revised estimates. The agency expects the operating and financial performance to remain under pressure in the near term. The company witnessed a significant uptick in portfolio delinquencies in FY25, largely on account of increasing levels of borrower indebtedness, high field staff attrition, and operational challenges due to the transition to weekly collections mode from a monthly mode in select geographies (the transition has been paused at present due to headwinds in the sector), leading to weakening of the asset quality. The internal challenges were further exacerbated by external factors such as the impact of general elections in Q1 FY25, political movements in certain geographies, and adverse weather conditions. The ratings are supported by Spandana's geographically diversified loan portfolio and a healthy capitalisation profile, supported by the demonstrated track record of regular equity infusions. However, Spandana's overall cost of borrowings remains higher than that of its peers. The company also witnessed an uptick in the marginal cost of borrowing between Q1 FY25 and Q4 FY25. Thus, Spandana's ability to further diversify its funding profile and raise debt at improved rates compared to its peers would be a key rating monitorable. The ratings remain vulnerable to the risks associated with the microfinance business, including its modest borrower profile. This, however, is mitigated to some extent by the geographical diversification in Spandana's portfolio as well as the revised regulatory guidelines for the microfinance segment in FY22, which enable risk-based pricing for the industry. Spandana Sphoorty Financial is primarily engaged in the business of microfinance, providing small-value unsecured loans to low-income customers in semi-urban and rural areas. The scrip fell 1.32% to currently trade at Rs 280.05 on the BSE. Powered by Capital Market - Live

Net loss of Spandana Sphoorty Financial reported to Rs 434.30 crore in the quarter ended March 2025 as against net profit of Rs 128.64 crore during the previous quarter ended March 2024. Sales declined 38.62% to Rs 414.79 crore in the quarter ended March 2025 as against Rs 675.80 crore during the previous quarter ended March 2024. For the full year,net loss reported to Rs 1035.10 crore in the year ended March 2025 as against net profit of Rs 500.66 crore during the previous year ended March 2024. Sales declined 2.83% to Rs 2355.16 crore in the year ended March 2025 as against Rs 2423.71 crore during the previous year ended March 2024. ParticularsQuarter EndedYear EndedMar. 2025Mar. 2024% Var.Mar. 2025Mar. 2024% Var. Sales414.79675.80 -39 2355.162423.71 -3 OPM %-93.8158.40 --20.9262.20 - PBDT-570.42179.15 PL -1356.10690.98 PL PBT-577.62172.17 PL -1378.80670.57 PL NP-434.30128.64 PL -1035.10500.66 PL Powered by Capital Market - Live

Spandana Sphoorty Financial will hold a meeting of the Board of Directors of the Company on 30 May 2025.Powered by Capital Market - Live

The appointment was recommended by the nomination and remuneration committee (NRC). Damani currently serves as Spandana's president and chief financial officer. Damani has over 23 years of experience in the microfinance industry. Before joining Spandana in March 2022, he held various roles at Bharat Financial Inclusion , including that of CFO. He played a key role in guiding the company through sectoral challenges and led a borrowing program of Rs 12,000 crore prior to Bharat Financial's merger with IndusInd Bank. Damani is an alumnus of IIM Ahmedabad (AGMP) and holds a PGDBA from Symbiosis, Pune. Meanwhile, the board announced the resignation of Managing Director and CEO Shalabh Saxena, effective immediately. Saxena, who led the microfinance firm for over three years, stepped down to pursue other career opportunities. He will continue to support the company during his notice period to ensure a smooth leadership transition. Spandana Sphoorty Financial is primarily engaged in the business of microfinance, providing small-value unsecured loans to low-income customers in semi-urban and rural areas. The company reported a consolidated net loss of Rs 440.19 crore in Q3 FY25, compared with a net profit of Rs 127.40 crore posted in Q3 FY24. Revenue from operations tanked 12.8% year on year to Rs 572.59 crore in Q3 FY24. Powered by Capital Market - Live

Just Dial Ltd, Tata Elxsi Ltd, Suzlon Energy Ltd and Allcargo Logistics Ltd are among the other gainers in the BSE's 'A' group today, 21 April 2025.Spandana Sphoorty Financial Ltd soared 16.22% to Rs 315.2 at 11:47 IST. The stock was the biggest gainer in the BSE's 'A' group. On the BSE, 45619 shares were traded on the counter so far as against the average daily volumes of 39064 shares in the past one month. Just Dial Ltd spiked 11.62% to Rs 1027.55. The stock was the second biggest gainer in 'A' group. On the BSE, 2.55 lakh shares were traded on the counter so far as against the average daily volumes of 21414 shares in the past one month. Tata Elxsi Ltd surged 8.31% to Rs 5307. The stock was the third biggest gainer in 'A' group. On the BSE, 64022 shares were traded on the counter so far as against the average daily volumes of 32029 shares in the past one month. Suzlon Energy Ltd gained 7.68% to Rs 59.31. The stock was the fourth biggest gainer in 'A' group. On the BSE, 106.85 lakh shares were traded on the counter so far as against the average daily volumes of 80.44 lakh shares in the past one month. Allcargo Logistics Ltd added 7.09% to Rs 30.81. The stock was the fifth biggest gainer in 'A' group. On the BSE, 2.21 lakh shares were traded on the counter so far as against the average daily volumes of 3.86 lakh shares in the past one month. Powered by Capital Market - Live

Net loss of Spandana Sphoorty Financial reported to Rs 440.19 crore in the quarter ended December 2024 as against net profit of Rs 127.40 crore during the previous quarter ended December 2023. Sales declined 11.38% to Rs 554.76 crore in the quarter ended December 2024 as against Rs 626.03 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales554.76626.03 -11 OPM %-66.8463.16 - PBDT-581.99175.99 PL PBT-587.63170.35 PL NP-440.19127.40 PL Powered by Capital Market - Live

Spandana Sphoorty Financial will hold a meeting of the Board of Directors of the Company on 23 January 2025.Powered by Capital Market - Live