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SKS Microfinance Limited reported a net profit of Rs 2.7 crore for the quarter ended March, 2013, as compared with a net loss of Rs 329.53 crore in the corresponding quarter previous year.
The fourth quarter marks an improvement in profitability after a turnaround made by the company in the last quarter ending December, 2012, with a net profit of Rs 1.15 crore following the seven successive quarters of losses. Total income for the quarter grew 13 per cent at Rs 101.98 crore as compared with Rs 90.2 crore in the corresponding previous quarter.
It could improve profitability on account of robust growth in assets with the core interest income in non-Andhra Pradesh states increasing 15 per cent to Rs 90 crore in the quarter, the company said.
"With fully providing for the AP exposure, managing the supply-side shock, cost structure optimisation and recapitalisation as the building blocks of our turnaround strategy, we returned to profitability in the third quarter and, with second quarter of profitability, the financial turnaround of SKS is completed and sustained," S Dilli Raj, chief financial officer of SKS, said in a statement.
For the full year ended March, 2013, the microlender's net loss stood at Rs 297.14 crore as compared with a net loss of Rs 1,360.6 crore in the previous year. The total income from operations, however, decreased 23.76 per cent to Rs 332.2 crore from Rs 435.7 crore in the previous year.
