Spandana Sphoorty reports net loss of ₹204 Crore in Q2

29 Oct 2024 , 10:26 AM

On Monday, October 28, 2024, Spandana Sphoorty’s reported a net loss of ₹204 Crore in Q2FY25, compared to a profit of ₹116.3 Crore in the previous year. The microfinance institution’s (MFI) results reflect the sector’s current stress, which is also reflected in asset quality. 

The MFI’s gross NPA ratio increased to 4.86% from 2.6% the prior quarter. The net NPA ratio also jumped to 0.99% from 0.53% year on year, indicating a significant deterioration in the company’s loan quality.

Spandana Sphoorty’s assets under management (AUM) increased by 7.7% year on year to ₹10,537 Crore in September 2024, but decreased by 10.1% sequentially.

Spandana Sphoorty’s net interest income (NII) rose by 9.5% YoY to ₹395.7 Crore, but decreased by 5.1% QoQ. The company’s operational earnings decreased to ₹219.7 Crore, down 9.3% YoY and 19% QoQ due to rising sectoral pressures and provisioning needs.

Provisions increased by 468.56% YoY to ₹491.86 Crore, up from ₹86.51 Crore in the same period last year. Quarterly provisions increased by 143.7% from ₹201.8 Crore in the preceding quarter.

In the quarter, disbursements decreased by 40% to ₹1,514 Crore from ₹2,512 Crore in the previous corresponding period. The company prioritised helping existing borrowers during these challenging times. 

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