Spandana Sphoorty drops after poor Q1 result

Spandana Sphoorty Financial declined 2.99% to Rs 594.45 on BSE after the microfinance company reported a 36.9% decline in consolidated net profit to Rs 59 crore in Q1 June 2020 from Rs 93.4 crore in Q1 June 2019.

Provision and write-off related to Covid-19 and others was Rs 89.30 crore in Q1 June 2020. The company's total income grew by 7.2% to Rs 327 crore in quarter ended 30 June 2020 from Rs 304.90 crore posted in quarter ended 30 June 2019. Consolidated profit before tax came at Rs 78 crore in Q1 June 2020, lower than Rs 143 crore in Q1 June 2019. The result was announced after market hours yesterday, 31 August 2020.

The company's net interest income came at Rs 264 crore in Q1 June 2020 which is 37% higher than Rs 193 crore posted in Q1 June 2019. Net interest margin declined to 15.5% in Q1 June 2020 from 16.5% reported in the same period last year.

Spandana Sphoorty's Asset Under Management (AUM) stood at Rs 6,835 crore at the end of June 2020. The company could disburse Rs 49 crore in Q1 June 2020 as compared to Rs 1,963 crore disbursed in the same period last year. The company clarified lower disbursement was on account of COVID-19 pandemic. As of 30 June 2020, the company has Rs 764 crore as Cash & Cash equivalent balance and sanctions in pipeline over Rs 1,200 crore.

Spandana Sphoorty is a non-banking financial company - micro finance institution (NBFC-MFI).

Powered by Capital Market - Live News