Spandana Sphoorty Financial Q4 Results: Net profit rises 22% YoY to Rs 129 crore

Kolkata: Microfinance lender Spandana Sphoorty Financial has reported a 22% year-on-year rise in March quarter net profit backed by steady business and revenue growth.

The net profit for the quarter stood at Rs 129 crore against 106 crore in the year-ago period.

Its quarterly net interest margin, a key profitability metrics, improved to 14.6% from 13.9% seen in the year ago quarter. This was helped by a lower incremental cost of borrowing to 11.7% for the quarter while the average cost of funds was 12.2% for FY24.

Its net interest income for the quarter stood at Rs 378 crore, 41% higher than what it was in the same period last year.

The pre-provision operating profit however saw a modest 2% annual rise at Rs 266 crore for the quarter.The lender grew its assets under management 41% year-on-year to Rs 11973 crore while improving asset quality through better collection efficiency from the field. It is looking to grow its AUM 20-25% in FY25 to reach around Rs 15000 crore, as per its vision document for 2025.”While we will continue to sustain the momentum in FY25, we are particularly focused on improving efficiencies and productivity of the distribution,” managing director Shalabh Saxena said.The growth was driven by customer acquisition of 1.4 million in FY24 taking the active customer base of the company to over 3.3 million.

The lender’s gross non-performing assets ratio stood at 1.50% at the end of March against 2.07% a year back. Net NPA ratio was at 0.30% against 0.64%, with provision coverage ratio rising to 80% from 70.45% a quarter prior to this.