The scrip of SKS Microfinance Ltd has declined 4.99 per cent on BSE on Wednesday to touch the lower circuit limit of Rs 301.15.

The stock of the Hyderabad-based company closed at Rs 316.95 on Tuesday.

“There are no fresh triggers for the fall of scrip other than a gloomy outlook for the company which has been reporting increasing loss for the last two consecutive quarters,'' an analyst from a broking firm told Business Line when contacted.

In the fourth quarter of last fiscal (ending March 2011), SKS posted a loss of Rs 69.77 crore, which had gone up to Rs 218.74 crore in the first quarter of the current fiscal due to lack of fresh disbursal and little recovery of old loans in Andhra Pradesh. It had provided/ written off Rs 126 crore in the first quarter ended June 30, on its AP portfolio.

SKS, which had an outstanding portfolio of Rs 1,257 crore in AP as on June 30, now has 12.1 per cent recovery.

The company did not rule out the possibility of further write-offs/ provision as the situation in AP continues to be ‘challenging'.

The volatility in the share movement in the last two months in general, and since April in particular, is also quite noticeable even if there were no identified external triggers always.

Reacting to reports that SEBI would probe into its share movements, SKS earlier said any investigation would be ‘welcome'.

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