SKS Microfinance incurs Rs 330 cr loss

SKS Microfinance Limited, the only listed microfinance company in the country, has incurred a net loss of Rs 329.5 crore for the quarter ended March 2012. The loss amount is 372 per cent higher than the loss of Rs 69.76 crore incurred in the corresponding quarter of the previous year.

Total income during the quarter stood at Rs 66.15 crore, a 61.5 per cent decline, as compared to the income of Rs 174.73 reported in the same period last year.

The company's total loss during 2011-12 stood at Rs 1360.69 crore as against a loss of Rs 111.63 crore in 2010-11. SKS plunged into a crisis after the Andhra Pradesh (AP) government enacted a legislation in 2010 curtailing microfinance activity in the state. AP had been the industry hub at that time.

The company stated in a press release on Monday that it had brought down the AP exposure to Rs 236 crore from a high of Rs 1,491 crore in October 2010 by writing off Rs 272 crore in the fourth quarter of FY 12.

On the other hand, SKS said it continued to maintain high collection efficiencies in 17 non-AP states with the collection figures in the quarter under consideration standing at 95 per cent. The company also stated that it had obtained an incremental credit of Rs 1,360 during the quarter.

“Post the draw-down of Rs 1,000 crore in Q4 of FY12, which is 2.4 times larger than the sum of Rs 417 crore obtained during the nine months ended March 2011, the funding concerns are behind us,” SKS chief financial officer Dilli Raj said, adding that the company’s non-AP portfolio would grow from now on.

SKS stock price closed at Rs 94.70 on BSE on Monday, registering a 1.35 per cent decline over the previous close of Rs 96.