SKS Microfinance gains after strong Q4 earnings

SKS Microfinance rose 2.6% to Rs 260.60 at 11:11 IST on BSE after net profit jumped 904.1% to Rs 27.11 crore on 44.5% growth in total income to Rs 147.38 crore in Q4 March 2014 over Q4 March 2013.

The Q4 result was announced after market hours on Monday, 28 April 2014.

Meanwhile, the S&P BSE Sensex was down 130.17 points or 0.58% at 22,501.44.

On BSE, so far 2.55 lakh shares were traded in the counter as against average daily volume of 3.38 lakh shares in the past one quarter.

The stock hit a high of Rs 269.25 and a low of Rs 258.20 so far during the day. The stock had hit a 52-week high of Rs 282.40 on 22 April 2014. The stock had hit a 52-week low of Rs 95.60 on 24 May 2013.

The stock had outperformed the market over the past one month till 28 April 2014, surging 24.54% compared with the Sensex's 1.31% rise. The scrip had also outperformed the market in past one quarter, jumping 36.74% as against Sensex's 9.42% rise.

The small-cap company has equity capital of Rs 108.21 crore. Face value per share is Rs 10.

SKS Microfinance's loan disbursement rose 22% year-on-year (YoY) and 13% quarter-on-quarter (QoQ) to Rs 1580 crore in Q4 March 2014. Full year disbursement rose 44% to Rs 4788 crore FY 2014 in FY 2013.

Non-AP portfolio rose 41% YoY and 20% QoQ to Rs 2837 crore as of 31 March 2014.

The un-availed deferred tax benefit stood at Rs 558 crore as on 31 March 2014 and will be available to offset tax on future taxable income, SKS Microfinance said. Given the carried forward tax loss, no tax provision was required in FY 2014, SKS Microfinance said in a statement.

SKS Microfinance reported a net profit of Rs 69.85 crore in the year ended 31 March 2014 (FY 2014) as against net loss of Rs 297.14 crore in the year ended 31 March 2013 (FY 2013). Total income rose 54.5% to Rs 544.84 crore in FY 2014 over FY 2013.

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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