Spandana Sphoorty posts Rs 59 crore loss in Q2

Kolkata: Spandana Sphoorty Financial, which was caught in a bitter fight between its promoter and private equity investor Kedaara Capital, reported a net loss of ₹59 crore in the September quarter, pulled down by the high provisions made to cover asset quality risks. It had reported ₹63 crore net profit in the year-ago period.

The microfinance lender delayed the announcement of its second-quarter result as it failed to complete the audit in time due to the flux in management, including the exit of founder Padmaja Reddy on November 2 last year.

Its total income, however, rose to ₹373 crore from ₹346 crore.

"Such change in management and other factors such as an increase in the portfolio at risk and NPA ratios due to higher delinquencies caused by Covid-19 pandemic have resulted in a breach of some of the covenants relating to borrowings," Spandana Sphoorty said in a regulatory filing to the stock exchanges, without giving details about the NPA ratios.

"The company has been regularly servicing all its borrowings and has sought forbearance/ waiver from the lenders with respect to non-compliance with the covenants, wherever applicable," it said.

Till mid-December 2021, Spandana saw about a 7% increase in cash collections as compared with the average of those recorded in the quarter ended September 30, 2021.