Spandana Sphoorty Financial Limited — PPTs, 23-01-2025: Investor Presentation

**Financial Highlights:** Spandana Sphoorty Financial Limited’s Q3 FY25 results reflect ongoing challenges, with AUM declining 14% YoY to ₹8,936 Cr amid a deliberate slowdown in disbursement. Key metrics include a net interest income of ₹657 Cr, down 13%, while PPOP fell to ₹78 Cr due to lower AUM and higher operating expenses. PAT registered a loss of ₹440 Cr, significantly impacted by impairment costs.

**Strategic Initiatives and Growth Drivers:** The company has focused on cautious lending and customer retention, deploying customer retention associates to recover from GNPA. The strategic goal includes diversifying borrower bases and improving collections, with promising signs of collection efficiency recovery at 97.8% in December 2024.

**Business Developments:** Spandana aims to raise ₹750 Cr to boost liquidity, with approximately 17% of assets held as cash. Branch expansion in northern states is ongoing to mitigate concentration risk.

**Market Position and Competitive Advantage:** The company is adjusting its product offerings to manage elevated attrition rates and enhance credit discipline among borrowers. While market conditions remain challenging, Spandana's proactive approach and liquidity position suggest a positive outlook.

**Investor Implications:** With a focus on recovery and controls, as well as efforts to strengthen financial health, investors should monitor Spandana's progress closely as it adapts to industry challenges for potential long-term growth.