Spandana in good books

Spandana Spoorty posted a very set of earnings for Q4FY20 with total income rising 64% (YoY) at Rs.440 crore. Net Interest income (NII) was up 56% at Rs.263 crore and margins improved 71 bps from 15.9% to 16.6%.

In Q4, provision and write-off related to Covid and other was at Rs.129 crore and total impairment on Financial Instruments was at Rs.188 crore.

The company ended the quarter with a net profit of Rs.83 crore, up 13%.

Its disbursements for FY20 were up 67%. Asset quality is good with Gross NPA at 0.36% and Net NPA at 0.07%.

On the Covid update, the company said that 79% of Spandana’s branches became operational by April-end; on 20th April, it started with only approximately 30% field staff strength but increased to almost 50% by April-end. The field staff started collecting from those borrowers who didn’t want to avail moratorium and now by end of May, all its branches have become operational and more than 92% of the staff resumed work.

The stock price has reacted positively to this news with the stock now frozen at its 5% UC at Rs.535.50 but this was after it first hit the 5% LC too at Rs.484.50.