SKS Microfinance Ltd has posted a net loss of Rs 428 crore in the third quarter ended December 31, 2011.
The Hyderabad-based company had earned Rs 34 crore net profit in the corresponding quarter of previous financial year.
The loss was due to Rs 358.66 crore provisions and write-offs made during the period under review, largely on account of Andhra Pradesh Microfinance crisis.
“In the absence of virtual certainty of future taxable profits supported by convincing evidence, the net deferred tax asset amounting to Rs 353 crore as at December 31, 2011, has not been recognised,” SKS said in its un-audited financial results communicated to the Bombay Stock Exchange on Thursday.
The total revenue decreased to Rs 83.82 crore (Rs 384 crore).
The company's disbursals and collections were hit in Andhra Pradesh, its main market, since the enactment of Andhra Pradesh Microfinance (Regulation of Moneylending) Act, 2010.
During the quarter, SKS founder, Mr Vikram Akula stepped down as Executive Chairman and Director of the company.
Mr P. H. Ravi Kumar, Independent Director, took over as the Non-Executive Interim Chairman of the company in November 2011.
SKS scrip rose 0.70 per cent to end at Rs 93.55 on the Bombay Stock Exchange on Thursday.