Shares of SKS Microfinance lost about 10 per cent during intra-day trading on Tuesday, a day after the Andhra Pradesh-based company reported poor second-quarter earnings.
On the Bombay Stock Exchange (BSE), the shares touched an intra-day low of Rs 188.2, its lowest level in a year, before some buying activity helped it to pare some of the losses. It touched a high of Rs 202.8, before settling the day at 192.2, down eight per cent, when compared to Friday’s close of Rs 209. A total of 0.6 million shares changed hands on the BSE, with the turnover pegged at Rs 11.6 crore.
India’s largest micro-lender, SKS Microfinance’s net loss mounted to Rs 385 crore in the quarter ended September 30. Shrinking income, rising expenses and higher provisions dragged the company's earnings during the three-month period.
On the National Stock Exchange, the shares ended the day at 192.6, after touching a low of Rs 188.3. On Friday, the shares closed at Rs 209.1. Yesterday, the markets remained shut on account of Eid. The counter clocked a turnover of Rs 30.3 crore with 1.5 million shares being traded on Tuesday.
In the first three months of this financial year, SKS’ net loss was Rs 219 crore, lower than the just concluded July-September quarter. The second quarter earnings indicate that business activities continue to remain weak, despite initiatives taken by micro-lenders and their regulator, the Reserve Bank of India.
A year ago, SKS reported a net profit of Rs 80.5 crore. Earnings have been shrinking since October 2010, when the sector was hit by a crisis as the Andhra Pradesh government restricted micro-lending in the state.
In July-September quarter, SKS saw one of its most high-profile investors, George Soros, reducing its stake in the firm.