Spandana Sphoorty tumbles after weak Q2 result

Spandana Sphoorty Financial slumped 4.05% to Rs 398 after the NBFC reported a consolidated net loss of Rs 57.9 crore in Q2 FY22 as against a consolidated net profit of Rs 66.7 crore reported in Q2 FY21.

Total revenue from operations increased by 14.7% to Rs 395.6 crore in Q2 FY22 from Rs 344.8 crore registered in Q2 FY21. The microfinance institution posted a pre tax loss of Rs 71.5 crore in Q2 FY22 as against a profit before tax of Rs 91.4 crore reported in Q2 FY21.

The company reported an impairment on financial instrument and other provision of Rs 241.3 in Q2 FY22. Meanwhile, finance cost jumped 78% year on year to Rs 149.7 crore in Q2 FY22. The NBFC's debt to equity ratio stood at 1.81 as of Q2 FY22.

In a separate announcement, the microfinance lender announced that the company's board will meet on 10 January 2022 to consider the proposal to raise funds by way of further issue of securities through public and/or private offerings including qualified institutions placement or other permissible mode.

Spandana Sphoorty Financial is a rural-focused non-banking financial company and a microfinance lender (NBFC-MFI) with a geographically diversified presence in India.

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