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Friday, July 26, 2013

SKS Microfinance posts Rs 5-cr profit in Q1

SKS Microfinance Ltd has posted a profit of Rs 5 crore in the first quarter ended June 30, 2013.

The country’s only listed micro-finance institution had incurred a Rs 39-crore loss in the corresponding quarter of the previous financial year.

This was the third consecutive quarter of profit for the company, which turned around after having been hit by losses after the microfinance crisis in Andhra Pradesh some years ago.

Rise in revenue

Revenues increased to Rs 117 crore (Rs 74.5 crore). Due to the increase in loan disbursements outside Andhra Pradesh, net interest income was higher, the company said in a release on Thursday.

In the last few quarters, the company’s turnaround strategy of fully providing for the Andhra Pradesh exposure, managing supply-side shocks, cost structure optimisation and recapitalisation led to profits, its Chief Financial Officer, S. Dilli Raj told Business Line.

The non-AP portfolio as on June 30, 2013 stood at Rs 2,003 crore.

“By the year-end, this will go up to Rs 2,800-3,000 crore, with a projected disbursal of about Rs 4,800 crore.

The profit after tax for the current financial year could be around Rs 60 crore,” he added.

Fresh provioning

During the quarter, SKS made an additional provision of Rs 11.7 crore towards its joint liability group loan portfolio in States other than AP. This entire provision related to just standard assets.

The SKS scrip gained marginally to end at Rs 99.45 on the Bombay Stock Exchange on Thursday.

Source: thehindubusinessline


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