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Spandana Sphoorty Q2 Results Review - Gradually Approaching Business Normalcy: ICICI Securities

Management and operational stability to help improve earnings trajectory going forward.

<div class="paragraphs"><p>A lady holding 500 rupee Indian banknote for photograph.&nbsp;(Photo: Usha Kunji / Source: BQ Prime)</p></div>
A lady holding 500 rupee Indian banknote for photograph. (Photo: Usha Kunji / Source: BQ Prime)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

ICICI Securities Report

Q2 FY23 was a quarter of consolidation for Spandana Sphoorty Financial Ltd. with focus on:

  1. building foundation to ensure sustainable growth in the coming years,

  2. containing forward flow in the participating portfolio,

  3. rebuilding the liability engine, and

  4. strengthening the management team.

Progression towards achieving these milestones are on track. Further, management sounded confident about Spandana’s full-year FY23 disbursement target of Rs 80 billion despite a muted H1 FY23 (when only Rs 27 billion was disbursed).

Assets under management growth reviving to 5% QoQ, gross borrowing of more than Rs 10 billion versus Rs 1.5 billion in Q1 FY23 with declining marginal cost of borrowing, credit cost at less than 2% versus an average of more than 10% during the past six quarters, and return on asset of more than 3% summarise Spandana’s Q2 FY23 performance.

Click on the attachment to read the full report:

ICICI Securities Spandana Q2FY23 Results.pdf

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