Spandana Sphoorty net profit rises 50% to Rs 75 crore in March quarter

Spandana Sphoorty

Microfinance lender Spandana Sphoorty on Monday reported an over 50 percent jump in net profit at Rs 75 crore for the quarter ended March 2022. The results have been published with a delay due to management-level issues.

The company had posted a net profit of Rs 49.3 crore in the same quarter of FY21. On May 30, Spandana had informed the stock exchanges about delay in submitting the financial results for the financial year ended March 31, 2022 as it was facing disruptions due to management-level problems.

The company said it was nearing an in-principle settlement with its erstwhile managing director Padmaja Reddy to amicably resolve all differences, including reconciliation of all historical matters. The company's total income during the quarter ended March 2022 fell by about 38 percent to Rs 299.10 crore, as against Rs 480.30 crore in the year-ago period, Spandana said in a regulatory filing.

Net profit for the full year 2021-22 fell by over 17 percent to Rs 120 crore, as against Rs 146 crore in 2020-21. Total income during the year was also down to Rs 1,480 crore from Rs 1,505.60 crore.

Shalabh Saxena, managing director and CEO, said FY22 was a watershed year and the company successfully managed the various disruptions during the period. "With successful transition of management, a reasonably good Q4 (on key business parameters) and various efforts undertaken to strengthen the fundamentals of business, we feel confident of charting a quality growth path for Spandana in the coming years," Saxena said.

He said its 'Vision 2025' has planned to scale up its business assets under management (AUM) to Rs 15,000 crore over the next three years, which is over two-times from the present AUM. Spandana Sphoorty Financial is a rural-focused non-banking financial company and a microfinance lender (NBFC-MFI). It offers income generating loans under the joint liability group (JLG) model, predominantly to women from low-income households in rural areas.

Padmaja Reddy, also the founder of the company, had resigned from her position as MD on November 2, 2021. However, certain disputes arose between her and the board of directors and she was removed as MD. Last month, Spandana said the company and Reddy had resolved their differences and agreed to part ways on amicable terms. It also said she continues to be a substantial shareholder and member of the company's board.

Stock of Spandana closed at Rs 430.95 apiece on BSE, up by 3.49 percent.