SKS Microfinance Ltd’s net profit increased in the first quarter ended June 30, 2014 at Rs 49 crore compared to Rs 4.96 crore in the corresponding quarter of previous year.

The total revenue has gone up by 30 per cent to Rs 152 crore (Rs 117 crore), the company said in a release on Thursday.

Its portfolio excluding the states of Andhra Pradesh and Telangana registered a 39 per cent increase to Rs 2,783 crore from Rs 2,003 crore in the previous year.

When contacted its President S Dilli Raj told Business Line that the increase in profit was mainly driven by portfolio growth, decrease in cost of borrowing and advantage the company had due to Rs 400 crore capital raised during the quarter through Qualified Institutional Placement.

SKS had also announced a one per cent reduction in the interest rate charged from borrowers from 24.55% to 23.55% with effect from October 1, 2014 as it could reduce its cost of borrowing by one per cent to 12.6%.

As of June 30, 2014, it had a net worth of Rs 891 crore with capital adequacy of 39.6 per cent. Cash and cash equivalents stood at Rs 488 crore. The unavailed deferred tax benefit of Rs 542 crore would be available to offset tax on future taxable income.

Former managing director of Indian Railway Finance Corporation, S Balachandran, had joined SKS Board as a director, the release added.

SKS Microfinance scrip marginally gained 0.69 per cent to end at Rs 276.45 on the Bombay Stock Exchange on Thursday.

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