SKS Microfinance clocks Rs 16.3Cr net profit in Q2; NII doubles to Rs 68Cr

Public-listed microlender SKS Microfinance Ltd recorded a net profit of Rs 16.3 crore in the three months ended September June 30, 2013 against a net loss of Rs 262 crore in the year-ago period, due to a sharp cut in provisions and write-offs and a rise in income from operations.

The country’s second-largest MFI and the only one listed on the stock exchange, booked a profit of Rs 1.2 crore for the first time in the quarter ended December 31, 2012, when it turned around after seven consecutive quarters of losses, caused by regulatory clamps on its business in Andhra Pradesh. It has been profitable since.

The firm’s interest income from portfolio loans almost doubled to Rs 104 crore against Rs 53 crore. Net interest income was up two times at Rs 68 crore against Rs 34 crore a year ago and rose 7 per cent over the first quarter ended June 30, 2013.

WestBridge Capital-backed firm reported incremental funding of Rs 1,010 crore last quarter compared with Rs 215 crore in Q1 FY14 and Rs 405 crore in Q2 FY13.

Loan disbursement grew 42 per cent (YoY) and 18 per cent (QoQ) to Rs 978 crore.

The firm’s non-AP portfolio as on September 30, 2013 stood at Rs 2,029 crore. The firm said the entire net provisioning of Rs 4 crore in Q2 FY14 is on standard assets and it has voluntarily topped up the provisioning on securitised/assigned/managed portfolio to a minimum of 1 per cent compared with 0.25 per cent earlier.

SKS had a net worth of Rs 411 crore and capital adequacy at 31.0 per cent as of September 30, 2013.

The firm had ROE of 16.2 per cent in Q2 FY14 and closed the quarter with cash and bank balance of Rs 630 crore.

SKS’ total outstanding gold loan portfolio was pegged at Rs 64 crore, forming 3.2 per cent of its non-AP gross loan portfolio.

(Edited by Joby Puthuparampil Johnson)

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