SKS Microfinance rose 2.94% to Rs 192.70 at 11:06 IST on BSE after net profit galloped 1763.5% to Rs 21.40 crore on 54.8% growth in total income to Rs 139.66 crore in Q3 December 2013 over Q3 December 2012.
The Q3 result was announced after market hours on Friday, 24 January 2014.
Meanwhile, the S&P BSE Sensex was down 310.79 points or 1.47% at 20,822.77.
On BSE, so far 2.50 lakh shares were traded in the counter as against average daily volume of 2.62 lakh shares in the past one quarter.
The stock hit a high of Rs 196.80 and a low of Rs 188.05 so far during the day. The stock had hit a 52-week high of Rs 209.85 on 24 December 2013. The stock had hit a 52-week low of Rs 95.60 on 24 May 2013.
The stock had underperformed the market over the past one month till 24 January 2014, sliding 9.21% compared with the Sensex's 0.48% rise. The scrip had, however, outperformed the market in past one quarter, surging 17.85% as against Sensex's 1.97% rise.
The small-cap company has equity capital of Rs 108.21 crore. Face value per share is Rs 10.
SKS Microfinance's loan disbursements on sequential basis grew 43.04% to Rs 1399 crore in Q3 December 2013 (YoY growth of 79%). Consequently, the non-Andhra Pradesh portfolio grew 16.51% to Rs 2364 crore in Q3 December 2013 over Q2 September 2013 (YoY growth of 58.02%). The company had incremental draw-downs of Rs 566 crore in Q3 December 2013.
Mr. M.R. Rao, Managing Director & CEO, SKS Microfinance said, "The growth momentum has returned, and disbursements have gained traction with a 43% quarter-on-quarter growth and 79% year-on-year growth. The non-Andhra Pradesh portfolio has registered 58% year-on-year growth and 17% quarter-on-quarter growth. Our efficiency initiatives have been yielding results with reduction in Opex as a percentage of credit assets. In Q4 FY 2014 too, we do not plan to increase branches or headcount. However, the portfolio outstanding could grow by another 15% quarter on quarter, and that is when we will register further efficiency gains".
Mr. S. Dilli Raj, Chief Financial Officer, SKS Microfinance said, "Growth in credit assets, effective liquidity management and operating leverage playing out have placed our Return on Assets (ROA) and Return on Equity (ROE) in the best-of-the-breed league. Economic value of the unavailed deferred tax provision of Rs 567 crore has also started showing up on the profit and loss statement. Sufficient liquidity, a positive asset liability management (ALM) structure and a strong distribution network equip us to address the huge unmet demand potential of the rural credit segment we target".
SKS Microfinance had a net worth of Rs 432 crore and capital adequacy of 28.1% (21.6% without taking RBI dispensation on provisioning for the Andhra Pradesh portfolio) as of 31 December 2013. Cash and bank balances as at 31 December 2013 stood at Rs 309 crore.
SKS Microfinance before market hours today, 27 January 2014 said that its board of directors will meet on 4 February 2014, interalia, to consider and approve Business Plan for FY 2015 & FY 2016.
SKS Microfinance is a non banking financial company - micro finance institution (NBFC-MFI), registered and regulated by the RBI, whose mission is to provide financial services to low-income households. SKS operates across 15 states of India. They include: Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala and Punjab.
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