Spandana Sphoorty's net profit rises 268% to Rs 105 cr in March quarter

Microlender Spandana Sphoorty Financial on Tuesday reported a 268 per cent jump in its consolidated March quarter net profit to Rs 105.55 crore.
 

The Hyderabad-based company, specialising in rural loans, had posted a post-tax profit of Rs 71.36 crore in the preceding December quarter.
 

For FY23, its post-tax net profit declined to Rs 12.31 crore against Rs 69.8 crore in the year-ago period. A statement from Spandana Sphoorty said the company had to write off Rs 702 crore worth of assets in the first quarter of FY23, which resulted in a massive decline in the profit.
 

Its managing director and chief executive Shalabh Saxena said the company aims to disburse Rs 11,500 crore in loans in FY24 and will be opening 400 new branches as well.
 

For the reporting quarter, its total income grew to Rs 533 crore, up 42 per cent, when compared to the December quarter, while the core net interest income rose to Rs 384 crore.
 

The overall assets under management stood at Rs 8,511 crore as of March 31, 2023, against Rs 6,581 crore in the year-ago period.
 

On the asset quality front, the lender showed a sharp improvement, with the gross non-performing assets ratio coming at 2.07 per cent against 18.7 per cent in the year-ago period.
 

The Spandana scrip closed 6.14 per cent up at Rs 632.15 apiece on the BSE on Tuesday ahead of the announcement of results.