SKS Mircofinance Q1 net profit flat at Rs 49.3 crore

Microfinance company SKS Microfinance today reported a near flat net profit at Rs 49.3 crore in the April-June quarter over the year-ago period.
The company had reported a net profit of Rs 49.69 crore during the same period last year.
Net interest income grew by 41 per cent at Rs 89 crore from Rs 63 crore last year, the company said in a release issued here today.
During the period, the company reduced its cost of borrowing by 1 per cent, to 12.6 per cent, from 13.5 per cent in the same period last year.
It's portfolio, excluding Andhra Pradesh and Telangana, registered a 39 per cent year-on-year increase at Rs 2,783 crore in the April-June period, from Rs 2,003 crore last year.

Loan disbursements grew by 40 per cent to Rs 1,160 crore in the period from Rs 830 crore.

As of June 30, 2014, SKS Microfinance had a net worth of Rs 891 crore and capital adequacy of 39.6 per cent. Cash and cash equivalents stood at Rs 488 crore.
It said the unavailed deferred tax benefit of Rs 542 crore would be available to offset tax on future taxable income.
Given the carried forward tax loss, it did not made any tax provision during first quarter.
The company also announced a one per cent reduction in interest rate it charges from borrowers to 23.55 per cent from 24.55 per cent with effect from October 1.

It also announced addition of S Balachandran to its Board of Directors. He has 35 years of experience in the government and corporate sector, including an overseas assignment.
Balachandran has held many key positions in past such as Additional Member (Budget), Ministry of Railways, Managing Director of the Indian Railway Finance Corporation and Joint Director in the office of the Comptroller and Auditor General of India.