Shares of non-banking financial company (NBFC) Spandana Sphoorty Financial Ltd soared by 4.14 percent to Rs 659 on BSE at 9:56am, following a strong earnings performance in the March quarter.
The Hyderabad-based company specializing in rural loans reported a consolidated net profit of Rs 105.55 crore, marking a staggering 268 percent increase from the preceding December quarter. However, for FY23, the company's post-tax net profit declined to Rs 12.31 crore compared to Rs 69.8 crore in the previous year due to asset write-offs amounting to Rs 702 crore in the first quarter of FY23.
Despite the decline in profits for the year, Spandana Sphoorty's Managing Director and Chief Executive, Shalabh Saxena, remained optimistic about the company's growth prospects. He announced that the company aims to disburse Rs 11,500 crore in loans in FY24 and plans to open 400 new branches. For the reporting quarter, Spandana Sphoorty's total income grew to Rs 533 crore, a 42 percent increase from the December quarter, while the core net interest income rose to Rs 384 crore.
The company's assets under management increased to Rs 8,511 crore as of March 31, 2023, compared to Rs 6,581 crore in the year-ago period.
Stock Performance
The Spandana Sphoorty Financial Ltd stock has given a return of 14 percent since the start of this year. Thus, comfortably outperforming the benchmark Nifty50 index which has lost 0.67 percent of its value during the same duration.
On a 3-year basis, i.e., ever since its listing on August 19, 2019 the Spandana Sphoorty stock has lost 19.73 percent of its value. Whereas the benchmark Nifty50 index has given a return of 83.45 percent.
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