Spandana Sphoorty Financial Limited has announced strong fund-raising record and liquidity position during Q4 FY2019-20.
Provisional Key Metrics (Consolidated):
- As of 31stMarch, 2020, the unaudited Gross AUM was Rs. 6,900 Crs, driven by strong loan demand from its borrower base. Of this, the on-book portfolio was Rs. 5,017 Crs and the assigned portfolio outstanding was Rs. 1,883 Crs.
- The unaudited total borrowings (including PTC) were Rs. 3,073 Crs, spread across a large and diversified base of 32 lenders.
- Given that a substantial portion of the quarter's collections happened prior to the 24th March 2020 lockdown, the company does not expect any significant impact on profitability for the quarter.
The company had an equity base of Rs. 2,505 Crs as of December 31, 2019, with a substantial capital adequacy ratio of 50.5%. The company expects its March 31, 2020 equity base to be approximately Rs. 2,650 Crs, and are hence well capitalized for all eventualities.
The company said that it continued to receive strong support from its lenders during Q4 and March 2020 as well. During Q4, the company raised a total amount of Rs. 1,942 Crs, out of which Rs. 1,262 Crs through assignment transactions and Rs. 147 Crs was raised through securitization transaction. In March 2020 alone, the company has raised a total amount of Rs. 848 Crs, including Rs. 490 Crs raised through assignment transaction with the State Bank of India, post the lockdown, on 30th March 2020.
A unique aspect of Spandana has been its ability to do high volume of securitization and assignment transactions wherein the risk on the underlying portfolio can be transferred to the investor/assignee. In Spandana's history, Q4 FY2019-20 registered the highest value of assignment transactions. During FY2019-20, the company has concluded assignment transactions of Rs. 2,841 Crs and securitization transactions totalling Rs. 935 Crs. Consequently, more than 38% of the AUM is securitized or assigned, indicating significant de-risking of the balance sheet.
Mirroring the assistance the company has extended to its own borrowers, and in line with RBI policy, the company has requested for moratorium on all our facilities from the lenders till 31st May 2020. The company also continues to work with the lenders to raise more funds, to support its mission of providing vital capital to economically-weaker women in rural India.
As of 31st March 2020, the company had lien-free cash balance of Rs. 537 Crs. Hence, notwithstanding the above, the company has sufficient liquidity to service all its obligations and comfortably maintain the operations.