On Jan 10, 2025, Spandana Sphoorty share price continued its losing streak for the second straight day with a drop of ~7% at 10:20 AM. Spandana Sphoorty share price opened at ₹452.60 and touched the day low of ₹405.75. In the past 2 trading sessions, the shares of Spandana Sphoorty slipped over 12%. The fall in Spandana Sphoorty share price came after a substantial gain of over 40% in 2 trading sessions on Jan 7 and Jan 8.
The company has recently through an exchange filing clarified the increase in volume of shares and it has disclosed all the material information/announcement that may have bearing on the operations/performance of the Company which include all the necessary disclosures in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).
Spandana Sphoorty stated that the microfinance sector has faced several challenges over the past two quarters. The company’s operations were initially impacted by the prolonged elections and intense heatwave during the summer of 2024, and further disrupted by heavy rainfall and floods in certain states between July and September 2024. Additionally, issues such as higher-than-usual attrition rates, localised initiatives like Karza Mukti Abhiyan, and the increasing leverage of borrowers also affected the sector.
In light of these factors, Spandana adopted a cautious and selective approach to lending during the quarter, prioritising portfolio quality improvement and serving existing customers. As a result, while the company’s income increased by 10% year-on-year to ₹707 crore and net interest income (NII) rose by 9% year-on-year to ₹341 crore, higher delinquencies led to increased impairment costs, resulting in a reported loss of ₹216 crore. The Gross Non-Performing Assets (GNPA) at the end of the quarter stood at 4.86%, while the Net Non-Performing Assets (NNPA) were 0.99%.
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Published on: Jan 10, 2025, 11:26 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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