Submission Details
• Date of letter: August 2, 2024
• Enclosed: Transcript of conference call from July 27, 2024
• Discussion focus: Financial and operational performance for Q1 ending June 30, 2024
• Signed by: Vinay Prakash Tripathi, Company Secretary
Performance Overview
• CEO Shalabh Saxena addressed:
• Underwhelming Q1 performance due to:
• Electoral disruptions
• Severe heat wave
• High attrition rates among branch managers
• Resulted in:
• Increased absenteeism
• Decline in portfolio quality (59% of arrears from five states)
• Mitigation measures:
• Halting new customer acquisitions in certain branches
• Enhancing support for branch managers
• Improving monitoring tools
• Optimism for turnaround in 3-4 months
Financial Highlights
• Borrowing: INR 1,554 crores (consistent year-over-year, down 55% sequentially)
• Marginal cost of borrowing: Decreased to 11.4%
• Net interest income: Increased by 47% year-over-year to INR 425 crores
• Profit before tax (PBT): Declined by 53% to INR 75 crores
• Profit after tax (PAT): Declined by 53% to INR 56 crores
• Anticipated asset under management (AUM): INR 14,000 crores by year-end
• Expected credit costs: Approximately 3.75%
Project Parivartan Insights
• High collection efficiency (98%) but significant contribution to gross non-performing assets (GNPA) (65%)
• Transition to weekly loan model is gradual
• Focus on normalizing operations across all branches
Concerns and Responses
• Net interest margin (NIM): Currently at 15%, higher than guidance
• Increased attrition rates attributed to market opportunities and workloads
• Credit costs anticipated to stabilize by the end of the current quarter
• Portfolio at Risk (PAR) for 1-30 days: Approximately 3.1-3.2%
Employee Attrition and Market Competition
• High attrition in Telangana primarily due to work-life balance challenges
• Other MFIs facing asset quality issues in states like Gujarat and Maharashtra
Stage 2 Coverage Increase
• Rise from 37-38% to 47-48% due to updated ECL model
• Higher provisioning requirements for Stage 1 and Stage 2 loans
Sector Challenges and Future Outlook
• Increased credit cost guidance from 2.5% to 3.75% reflects higher-than-expected credit costs
• Management remains cautious but optimistic about future improvements in asset quality and collections
• Anticipated recovery in performance in the following quarter
Conclusion
• Management expressed gratitude to participants and invited further inquiries.

Company Performance Highlights
• Best Year in History: Management reported the best performance in the company's history.
• Branch Expansion: Surpassed target with 1,642 branches opened (target was 1,500 for FY25).
• Customer Growth: Customer base reached 3.32 million, on track for 4 million by FY25.
Financial Achievements
• Disbursements: Q4 disbursements reached 3,970 crores, a 56% quarter-on-quarter increase and 30% year-on-year growth.
• Assets Under Management (AUM): Year-end AUM at 11,973 crores, a 41% increase from FY23.
• Net Worth and Income: Consolidated net worth of 3,645 crores; net interest income (NII) of 1,289 crores (up 59% YoY).
Strategic Focus
• Customer Acquisition: Added 1.4 million customers in FY24, a 59% rise; 4.4 lakh new customers in Q4.
• Portfolio Quality: Improved with an 80% provisioning rate and GNPA down to 1.5%.
• New Product Launches: Criss Financial introduced loans against property and nano enterprise loans.
Future Goals
• AUM Growth Target: Aiming for 20-25% growth in AUM, targeting 14,500 to 15,000 crores for the current year.
• Long-term Vision: Goal to reach 28,000 crores by FY28, reflecting a 22% annualized growth.
Operational Strategies
• Geographical Diversification: Focus on reducing geographical concentration risks and enhancing customer engagement.
• Credit Quality Management: Aiming for a stable credit cost of around 2% by Q3 or Q4.
Risk Management and Efficiency
• Expected Credit Loss (ECL) Model Update: Shift to a monthly data approach for improved accuracy.
• Cost-to-Income Ratio: Targeting below 40% as new business lines mature.
Customer Acquisition and Market Strategy
• Customized Credit Criteria: Tailored approach based on geography and customer history to avoid becoming a secondary lender.
• Competitive Market Engagement: Emphasis on strong customer relationships and local expertise in competitive regions.
Employee and Operational Costs
• Employee Benefit Expenses: Increased due to hiring; expected productivity improvements to stabilize costs by FY25.
Conclusion
• Commitment to Sustainable Growth: Management expressed gratitude for engagement and reaffirmed focus on sustainable growth strategies.

Submission Details
• Date of letter: January 25, 2024
• Enclosed: Transcript of Q3 FY24 earnings call (January 22, 2024)
• Signed by: Vinay Prakash Tripathi, Company Secretary and Compliance Officer
• Participants: CEO Shalabh Saxena, CFO Ashish Damani
• Disclaimer: Forward-looking statements included
Company Performance Highlights
• Management Transition: Significant progress under new management (Spandana 2.0)
• Financial Milestones:
• AUM surpassed INR 10,404 crores
• PAT of INR 372 crores for the first nine months
• Future Goals: Vision 2025 targeting INR 28,000 crores by FY 2028
Operational Developments
• Branch Expansion: 72 new branches opened, total of 1,574
• Project Parivartan: Transition to weekly repayment model aimed at scalability
• Challenges: Missed repayments and collection disruptions
• Customer Base Growth: Aiming for 28,000 customers by FY'28
Financial Performance in Q3
• Mobilization Growth: 8% year-on-year growth, totaling INR 2,279 crores
• Income Reports:
• 75% increase in income to INR 657 crores
• 60% rise in net income to INR 407 crores
• Profit after tax grew by 79% to INR 127 crores
• Challenges: Decline in PPOP by 7% due to lower income from direct assignments
Q&A Session Insights
• Interest Rate Clarifications: Decline in yields attributed to interest income reversals, not rate changes
• Asset Quality Concerns: Disruptions primarily from Project Parivartan; no significant external factors
• Credit Cost Management: Current credit cost at 1.4%, with a target below 2% by year-end
Future Outlook
• Loan Growth Target: 25% growth projected, aiming for AUM of INR 15,000 crores
• Resilience in Collections: Transition to weekly collections expected to mitigate disruptions
• Management Confidence: Anticipation of normalizing issues in Parivartan branches within 1-2 quarters
Conclusion
• Commitment to building a resilient and scalable model for future growth emphasized by management.

Submission Details
• Date: December 18, 2023
• Recipient: BSE Limited and National Stock Exchange of India
• Content: Transcript of conference call held on December 11, 2023
• Signatory: Ramesh Periasamy, Company Secretary and Chief Compliance Officer
Conference Call Highlights
• Opening Remarks by Shalabh Saxena
• Gratitude for support over six quarters
• Importance of people in microfinance
• Focus on execution, distribution, portfolio quality, governance, stakeholder relationships
• Commitment to continuous improvement
• Operational Updates
• Resolved manpower issues; strong management team established
• Shift to weekly customer interactions
• Growth targets: 4 million customers and INR 15,000 crores AUM by FY 2025; INR 28,000 crores AUM by FY 2028
• Strategic Vision: "Vision 28 by 28"
• Five themes: Portfolio, Protection, Partners, Productivity, People's Practice
• Goal to increase customer base to 6.2 million borrowers by FY '28
• Risk Management and Governance
• Joint Liability Group (JLG) model for risk management
• Focus on process standardization and borrower discipline
• Implementation of Loan Utilization Checks (LUC) and geotagging
• Technological Advancements
• Transition to cloud-based infrastructure
• Automation of loan application processes
• Plans for offline collections and blockchain-based KYC management
• Employee Engagement and Culture
• "Employee first" philosophy with competitive salaries
• Initiatives for employee satisfaction and retention
• Focus on diversity, inclusion, and learning organization
• Financial Performance and Future Outlook
• Successful fundraising: INR 5,800 crores in FY '23 and INR 6,100 crores in FY '24
• Target to increase bank borrowings and reduce reliance on NBFCs
• Commitment to maintaining capital adequacy above 25%
• Q&A Session Insights
• Addressed sustainability of ROA targets and industry consolidations
• Discussion on regulatory scrutiny of interest rates charged by MFIs
Interest Rates and Regulatory Scrutiny
• Concerns about interest rates charged by MFIs discussed
• Spandana's interest rate is approximately 12.1%
• Prepared to adjust rates based on market conditions
Return on Assets (ROA) and Return on Equity (ROE)
• Shift in focus from ROA to ROE as the company grows
• Sustainable ROA target set at 4.5%-5%
Subsidiary Criss Financial
• Holds non-MFI assets to comply with regulatory requirements
• Maintains Spandana's qualifying asset ratio
Organizational Preparedness for Growth
• Confidence in leadership and scalability planning
• Need for counter-cyclical buffers noted
Risk Management Strategies
• Importance of building counter-cyclical buffers emphasized
• Provision coverage ratio increased to 70%
• Conservative provisioning strategy reassured
Loan Against Property (LAP) Segment
• Targeting "missing middle" demographic
• Average loan size: INR 4.5 lakhs; conversion rate for LAP applications: 27%
• Cautious growth approach in this segment
Insurance and Diversified Portfolio
• Previous insurance product attempts ineffective
• Focus on maintaining a diversified portfolio and strong liquidity (INR 1,500 crores available)
• Aim for capital adequacy ratio above 25%
Conclusion
• Saxena thanked attendees and offered Madhubani paintings as tokens of appreciation
• Event officially closed by the emcee

Earnings Call Overview
• Date: November 7, 2023
• Transcript submitted to BSE and NSE
• Led by: Shalabh Saxena (MD & CEO) and Ashish Damani (President & CFO)
• Focus: Financial and operational performance for Q2 and half-year ending September 30, 2023
• Availability: Transcript on company website
• Note: Contains forward-looking statements with associated risks
"Spandana 2.0" Initiative
• Focus on enhancing management teams and governance
• Emphasis on customer acquisition and technology scaling
• Significant changes in culture, processes, and distribution strategies
• Operationalization of 292 new branches; target of 1,500 branches by FY2025
• Shift to weekly repayment model and focus on joint liability groups (JLG)
Performance Highlights
• New customer acquisition: 3.5 lakh in last quarter (183% YoY growth)
• Total customer base: 2.7 million
• Assets Under Management (AUM): 9,784 Crores (69% YoY increase)
• Diversification of AUM to mitigate geographical concentration risks
• Disbursements: 2,513 Crores (81% YoY increase)
• Asset quality: GNPA at 1.4%, NNPA at 0.42%
• Total income: 640 Crores (106% YoY increase), profit after tax: 125 Crores (127% YoY increase)
• Credit rating upgraded to A stable
Strategic Growth Plan: Vision 2025
• Expansion in seven key states, aiming to increase AUM contribution from 22% to 26% by year-end
• Target to ensure no single state exceeds 12% of total AUM
• Future goal: Reach 12,000 Crores in AUM by year-end
Q&A Session Insights
• Customer acquisition target: Exceeding 1 million, potentially reaching 1.1 million
• Credit costs: Current rate influenced by legacy provisioning; aim to keep below 2%
• Collection efficiency: Confidence in improvements despite temporary disruptions from "Project Parivartan"
• Customer relationships: 34% of customers have a single lender relationship with Spandana
Credit and Borrowing Insights
• Maximum ticket size: 80,000; current customer indebtedness at approximately 36,000
• Rejection rate for loans: 45% due to two-year tenure policy
• Current credit cost: 1.4%, with expectations for stability
• Improvement in marginal borrowing costs; NIM currently at 14.1%
Branch Operations and Collection Strategies
• 1,502 branches operational; plans to transition 450 branches to weekly collections by FY2025
• Recovery of bad debt: ₹54 crores in the first half, aiming for over ₹100 crores by year-end
• Net collection efficiency based on daily collections
Conclusion
• Management expressed optimism for future growth and thanked stakeholders for their support
• Ongoing work on Vision 2025 plan highlighted

Submission Details
• Date: July 31, 2023
• Submitted to: BSE Limited and National Stock Exchange of India
• Transcript Availability: On company website
• Signed by: Ramesh Periasamy, Company Secretary and Chief Compliance Officer
Conference Call Highlights
• CEO's Reflection: Shalabh Saxena discussed progress since Vision 2025 introduction.
• Key Priorities:
• Strengthening management team
• Enhancing governance and risk controls
• Customer acquisition and retention
• Scaling technology for a paperless process
• Implementing customer-focused initiatives
• Customer Growth:
• 2.6 lakh new borrowers added in Q1 FY24
• Total of 8.8 lakh new borrowers in FY '23
• Targeting over 3 million customers by year-end
Financial Performance
• Growth Metrics:
• Significant growth in disbursements, assets under management, and net interest income
• Improved portfolio quality and collection efficiency
• Credit Costs: Expected to be around 1%-1.25%, lower than initial projections.
Q&A Session Insights
• Collection Efficiency: Aiming for 99% net collection efficiency.
• Operational Expenses: Higher due to annual increments and increased headcount, expected to normalize.
• Household Income Evaluation: Not targeting households earning over INR 3 lakh.
• Growth Strategy: Cautious approach likened to a test match; aiming for INR 15,000 crores by FY '25.
• Net Interest Margins (NIMs): Slight improvements expected due to yield increases and lower borrowing costs.
• Write-offs and Recoveries: Technical write-off of INR 21 crores; total recoveries of INR 90 crores.
Transition to Weekly Collection Model
• New branches adopting a weekly model; existing monthly contracts phased out.
• Weekly model allows for lower EMI payments, enhancing customer manageability.
Growth Projections
• Expected to reach INR 10,000 crores soon; aiming for INR 11,750 to INR 12,000 crores by year-end.
• Cost-to-income ratio target: 35%-40%, with a preference for 37%-38%.
• Current return on assets (ROA): 6%, with potential for improvement.
Talent Acquisition Challenges
• Importance of retaining quality employees, especially branch managers.
• Strategy includes hiring freshers and lateral hires, with training provided by experienced staff.
AUM Growth Target
• Confirmed target for FY '24: around INR 10,750 crores.
• Focus on maintaining quality in lending despite performance fluctuations.
Regional Focus
• Leading states for disbursements: Madhya Pradesh and Orissa.
• Strategy to reduce concentration risk by expanding into seven states.
Closing Remarks
• Commitment to a clear strategy leading up to FY '25, balancing quantity with quality.
• Gratitude expressed to participants for their engagement.

Submission Details
• Date: May 9, 2023
• Submitted to: BSE and NSE
• Transcript Availability: Company website
• Signed by: Ramesh Periasamy, Company Secretary and Chief Compliance Officer
Conference Call Highlights
• Management Participation: Included MD and CEO Shalabh Saxena.
• Focus: Discussed financial and operational performance, future outlook, risks, and uncertainties.
Financial Performance
• Q4 FY23 Growth:
• Disbursements: INR 3,054 crores (30% increase from previous quarter).
• Annual Disbursements: INR 8,125 crores (141% increase from FY22).
• Assets Under Management (AUM): INR 8,511 crores (24.2% quarterly growth).
• New Customers: 4.3 lakh (95% increase).
• Portfolio Quality: GNPA at 2.07%, NNPA at 0.64%.
• Total Income: INR 533 crores (42% increase).
• Annual PAT: INR 12 crores (82% decrease due to one-time write-off).
Strategic Initiatives
• Vision 2025: Launched in July, outlining growth strategies.
• Branch Expansion: Opened 112 branches in Q4 FY23; target of 1,500 branches by FY24.
• Focus Areas for FY24:
• Operational optimization.
• Employee welfare.
• Technology-led microfinance solutions.
Customer Acquisition and Product Strategy
• AUM Target: INR 18,000 crores by FY25.
• New Business Segments: Loan Against Property (LAP) and Nano MSME loans.
• Customer Focus: Average ticket size reduced to INR 35,000; aim to keep indebtedness below 90% of industry average.
Financial Metrics and Projections
• Normalized Yield: 22.8%, increased to 25% for new loans.
• Credit Cost Guidance: Remains at 2%, with current performance suggesting stabilization around 1.2-1.3%.
• Provision Coverage Ratio (PCR): 70%, with ongoing evaluations.
Operational Insights
• Branch Opening Costs: Temporary spike expected to normalize.
• Loan Products: Focus on LAP targeting rural and semi-urban areas with a ticket size of INR 3-5 lakhs.
Closing Remarks
• Gratitude: Expressed by Shalabh Saxena to shareholders, stakeholders, and team.
• Commitment: Emphasis on learning, improvement, and engagement with participants.

Submission Details
• Date: February 7, 2023
• Submitted to: BSE Limited and National Stock Exchange of India
• Transcript Availability: Company website
• Signatory: Ramesh Periasamy, Company Secretary and Compliance Officer
Management Overview
• Led by: Shalabh Saxena (MD & CEO) and Ashish Damani (CFO)
• Focus: Transition from consolidation to growth under Vision '25
• Key Priorities:
• Strengthening management and governance
• Customer acquisition and technology scaling
• Opening ~100 new branches, targeting 1,500 total by next financial year
Financial Performance Highlights
• Disbursements: Increased by 70% to INR 2,361 crores
• New Borrowers: 77% rise, with 46% loans to new customers
• Assets Under Management (AUM): Grew by 19% to INR 6,852 crores
• Portfolio Quality: Non-arrear loans at 92.1%, GNPA decreased to 5.3%
• Provision Coverage Ratio: 52.5%
• Net Worth: Increased to INR 2,961 crores
• Total Income: Up 21% to INR 375 crores
• Profit After Tax: Increased by 29% to INR 71 crores
Competition and Borrowing Costs
• Impact of NBFC competition: Reduced funding premiums but rising repo rates increasing borrowing costs
• NIMs: Target to maintain above 13.5%
• Customer Trust: Important for choices beyond pricing
Future Growth and Strategy
• Disbursement Targets: Significant growth expected, specific FY '24 projections not provided
• Capital Adequacy: No additional capital needed for the next five quarters
• Yield Improvements: Expected increase of 50 to 75 basis points in the next year
Credit Costs and Efficiency
• Elevated Credit Costs: INR 44 crores (2.5% of AUM), linked to increased coverage ratio
• Stabilization Expectation: Credit costs projected to stabilize around 2%
Technology and Monitoring
• Technology Initiatives: Geotagging and digitizing audit processes to enhance monitoring
• Investment Perspective: Viewed as beneficial rather than costly
Closing Remarks
• Commitment: Focus on quality growth and stakeholder support emphasized by management.