Spandana Sphoorty stock slips 5% on Rs 58-crore loss in Q2

Shares of Spandana Sphoorty Financial fell nearly 5% today after the microfinance firm reported a loss of Rs 58 crore for the quarter ended September 2021. It reported a profit of Rs 66.76 crore during the corresponding period of previous fiscal.

The share opened with a loss of 3.58%  at Rs 399.95 against the previous close of Rs 414.80 on BSE. It touched an intraday low of Rs 395, falling 4.77% in early trade. 

The shares trade 4.63% away from its 52-week low of Rs 384 hit on November 30, 2011. The stock hit 52-week high of Rs 830 on January 14, 2021 . It has lost 12.71% in the last five days.

Spandana Sphoorty stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The share has lost 47.17% in one year and fallen 12.51% since the beginning of this year.

In a week, the share has declined 12.81%. Total 0.17 lakhs shares of the firm changed hands amounting to a turnover of Rs 66.37 lakh on BSE. Market cap of the firm fell to Rs 2,593 crore.

The company made high provisions to cover asset quality risks which dented profit in  the September quarter.

The firm announced its financial earnings with a delay 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.

It failed to complete the audit in time amid the flux in management, including the exit of founder Padmaja Reddy on November 2 last year.

"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.