SKS Microfinance posts Rs 2.7-crore profit in Q4

Our Bureau Updated - May 08, 2013 at 10:03 PM.

SKS Microfinance Ltd has posted a net profit of Rs 2.7 crore in the fourth quarter ended March 31, 2013.

In the corresponding period of the previous financial year, the company incurred a loss of Rs 320 crore, SKS Micro said in a release on Wednesday.

When contacted, its Chief Financial Officer Dilli Raj told

Business Line that higher disbursements at Rs 1,295 crore, a 15 per cent hike in core interest income in non-AP portfolio, among others, drove the company to profits for a second consecutive quarter.

SKS, which suffered losses for seven consecutive quarters due to the Andhra Pradesh microfinance crisis in 2010 and subsequent AP MFI Act, turned red with Rs 1.1-crore profit in the third quarter of last fiscal.

For the full year 2012-13, the loss was at Rs 297 crore. In the FY12, the loss was 136 crore. The total revenue declined to 332 crore (Rs 436 crore).

OUTLOOK

The company is expecting about Rs 55-60 crore profit in the current financial year on a disbursement target of Rs 4,500 crore (Rs 32,86 crore), Dilli Raj said.

“We are also thinking of re-entering retail insurance as some issues with the insurance regulator are closed now,’’ he said. When asked if disbursals were resumed in Andhra Pradesh post a Supreme Court ruling allowing it to do so, he refused to comment.

Foreign institutional investors, who held 13.41 per cent stake in the company at the end of 2011-12, increased their stake to 35.94 per cent as on March 31, 2013. SKS Micro scrip gained 1.03 per cent on the Bombay Stock Exchange on Wednesday to end at Rs 127.65.

naga.gunturi@thehindu.co.in

Published on May 8, 2013 13:00