Spandana Sphoorthy Financial reported 3.8% fall in Sep-20 quarter top line revenues yoy at Rs344.84cr. While interest income was higher yoy in the Sep-20 quarter, the overall revenues were lower due to sharply lower gains on fair value changes. While the impact of the COVID quarter was limited, there are signals of higher financial asset impairment.
For the Sep-20 quarter, the operating profits were down 52.3% at Rs91.42cr. This sharp fall was largely on account of the impairment of financial instruments increasing 6-fold on a yoy basis. This resulted in the operating margin or OPM virtually halving from 53.42% in the Sep-19 quarter to 26.51% in Sep-20 quarter.
Profit after tax (PAT) for the Sep-20 quarter was up 46.15% at Rs66.85cr. This was largely because Spandana had to take an Rs145cr deferred tax hit in the Sep-19 quarter. PAT margins improved from 12.76% to 19.39% in Q2.
Financial highlights for Sep-20 compared yoy and sequentially
|
|
Spandana Sphoorthy Financial |
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
344.84 |
358.47 |
-3.80% |
325.97 |
5.79% |
|
Operating Profit |
91.42 |
191.48 |
-52.26% |
78.41 |
16.59% |
|
Profit After Tax (PAT) |
66.85 |
45.74 |
46.15% |
59.04 |
13.23% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
₹ 10.34 |
₹ 7.31 |
|
₹ 9.12 |
|
|
Operating Margins |
26.51% |
53.42% |
|
24.05% |
|
|
PAT Margins |
19.39% |
12.76% |
|
18.11% |
|
Key takeaways from the Sep-20 quarter results
-
There are indications of stress on the lending portfolio of the company considering the higher provisioning made for asset impairment losses. This could be an area to watch out for even as profit growth has been positive. However, this bottom line growth is more due to the impact of the deferred tax hit in Sep-19 quarter.
Related Tags: