Hot Pursuit     17-Jan-24
ICRA revises outlook on credit ratings of Spandana Sphoorty to 'positive'
Spandana Sphoorty Financial said that the credit rating agency ICRA has revised the outlook for various instruments of the company to 'positive’ from 'stable’.

The agency has reaffirmed the rating on the term-loan and debentures of Spandana Sphoorty at “[ICRA] A”.

ICRA stated that the revision in the rating outlook factors in the steady improvement in Spandana Sphoorty Microfinance’s (SSFL) borrowing profile, characterised by a reduction in the marginal borrowing cost and the addition of new lenders.

The marginal cost of borrowing has reduced over the last four quarters, but is higher compared to some of the industry peers. Going forward, SSFL’s ability to diversify its liability profile further and keep the borrowing rates under control would be crucial from a rating perspective.

SSFL’s consolidated assets under management (AUM) stood at Rs. 9,784 crore as of September 2023, catering to about 27 lakh borrowers through a network of 1,502 branches spread across 19 states. Its portfolio remains diversified with no state accounting for more than 20% of the portfolio.

The ratings also consider the risks associated with the marginal borrower profile, unsecured lending, business, and political risks along with the high pace of growth. SSFL’s ability to manage such risks while expanding to new geographies would be crucial.

ICRA takes note of the new management team and various initiatives for risk management, technology and operational improvements, which shall partly offset the impact of the above risks.

Spandana Sphoorty Financial is a rural-focused non-banking financial company and a microfinance lender (NBFC-MFI) with a geographically diversified presence in India. The company offers income generating loans under the joint liability group (JLG) model, predominantly to women from low-income households in rural areas.

The MFI has reported 127% jump in consolidated net profit to Rs 125 crore in Q2 FY24 from Rs 55 crore in Q2 FY23. Total income from operations increased by 105% year-over-year to Rs 610 crore during the period under review.

The scrip shed 0.90% to currently trade at Rs 1147.60 on the BSE.

Previous News
  Spandana Sphoorty Financial to hold board meeting
 ( Corporate News - 20-Apr-24   09:34 )
  Spandana Sphoorty Financial schedules board meeting
 ( Corporate News - 17-Apr-24   16:04 )
  Spandana Sphoorty Financial approves NCD issuance of Rs 100 cr
 ( Corporate News - 15-Mar-24   15:46 )
  Spandana Sphoorty to raise Rs 100 cr via NCDs
 ( Hot Pursuit - 15-Mar-24   14:31 )
  Spandana Sphoorty Financial to conduct board meeting
 ( Corporate News - 13-Mar-24   09:21 )
  Spandana Sphoorty Financial allots 38,125 equity shares under ESOP
 ( Corporate News - 06-Mar-24   11:41 )
  Spandana Sphoorty Financial approves raising up to Rs 70 cr via NCDs
 ( Corporate News - 04-Mar-24   14:18 )
  Spandana Sphoorty Financial to convene board meeting
 ( Corporate News - 29-Feb-24   12:31 )
  Spandana Sphoorty board to mull NCD on March 4
 ( Hot Pursuit - 29-Feb-24   08:36 )
  Spandana Sphoorty Financial Ltd leads losers in 'A' group
 ( Hot Pursuit - 22-Feb-24   15:00 )
  Spandana Sphoorty Financial announces board meeting date
 ( Corporate News - 06-Feb-24   15:45 )
Other Stories
  Gujarat State Petronet Ltd leads losers in 'A' group
  22-Apr-24   15:00
  Suratwwala Business Group Ltd leads losers in 'B' group
  22-Apr-24   14:45
  GSPL plunges as pipeline tariff gets slashed
  22-Apr-24   14:43
  Volumes jump at ITI Ltd counter
  22-Apr-24   14:30
  NTPC arm inks MoU with Indus Towers
  22-Apr-24   14:22
  United Breweries CFO Radovan Sikorsky resigns
  22-Apr-24   14:19
  Telecom stocks edge lower
  22-Apr-24   14:00
  Jio Financial rises after recording PAT of Rs 311 crore in Q4
  22-Apr-24   13:22
  Pavna Inds hits the roof after signing auto component supply agreement with OLA Electric
  22-Apr-24   13:19
  Jindal Stainless Ltd rises for third straight session
  22-Apr-24   13:05
Back Top