SKS Microfinance Q1 net profit at Rs 5 cr

Total income of the company rose 58% to 117 crore

SKS Microfinance, the sole listed micro-lender in the country, posted a net profit of Rs 5 crore in the first quarter of the current financial year ended June 30, against a net loss of Rs 39 crore in the corresponding quarter previous year. Total income increased 58 per cent to Rs 117 crore from Rs 74 crore in the same period. SKS has posted profit for the third consecutive quarter after its turnaround in the third quarter of 2012-13.

“Our third consecutive quarter of profit in Q1-FY14 is a result of our team’s tireless implementation in the last few quarters of the four-pronged turnaround strategy of fully providing for the AP exposure, managing the supply-side shock, cost structure optimisation and recapitalisation,” Chief Financial Officer S Dilli Raj stated in a press release.

The company’s provisions and write-offs during the quarter increased 10 per cent to Rs 11 crore. There was no tax provision for this quarter, too, given the carried-forward losses.