SKS Microfinance jumped 10.93% to Rs 100 at 15:02 IST on BSE after the company reported net loss of Rs 38.84 crore for Q1 June 2012, much lower than net loss of Rs 218.74 crore in Q1 June 2011.
The result was announced after market hours on Friday, 3 August 2012.
Meanwhile, the BSE Sensex was up 241.78 points or 1.41% to 17,439.71.
The stock surged on high volumes. On BSE, 25.51 lakh shares were traded in the counter as against average daily volume of 7.51 lakh shares in the past one quarter.
The stock hit a high of Rs 104.20 and a low of Rs 92.40 so far during the day. The stock had hit a record low of Rs 54.40 on 31 May 2012. The stock had hit a 52-week high of Rs 403.75 on 4 August 2011.
The stock had outperformed the market over the past one month till 3 August 2012, jumping 31.7% compared with the Sensex's 1.31% fall. The scrip had, however, underperformed the market in past one quarter, sliding 9.85% as against Sensex's 0.27% rise.
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The small-cap company has an equity capital of Rs 103.76 crore. Face value per share is Rs 10.
SKS Microfinance's total income declined 55% to Rs 79.45 crore in Q1 June 2012 over Q1 June 2011.
Commenting on the first quarter performance, Mr. S Dilli Raj, Chief Financial Officer, SKS Microfinance said, "We embraced the principle that, in a crisis period, cash flows are more important than balance sheet and balance sheet is more important than P&L. We raised incremental debt of Rs 1360 crore in Q4 March 2012 and held a cash and bank balance of Rs 403 crore at the end of Q1 June 2012. The write-off of Rs 1128 crore on the Andhra Pradesh portfolio cleansed the balance sheet. Now the focus is on P&L and hence the headcount and branch network rationalization. Our immediate priority is to return to the path of profitability and with the capital raise we should reach there sooner than later".
SKS Microfinance (SKS) is a non-banking finance company (NBFC-MFI), registered and regulated by RBI, whose mission is to provide financial services to low-income households. SKS operates across 18 states in India.
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