SKS Microfinance surged 4.9% to Rs 133.90 at 9:17 IST on BSE after the company reported net profit of Rs 2.70 crore in Q4 March 2013, as against net loss of Rs 329.53 crore in Q4 March 2012.
The company announced Q4 results after market hours on Wednesday, 8 May 2013.
Meanwhile, the S&P BSE Sensex was up 28.49 points or 0.14% at 20,018.67.
On BSE, 87,000 shares were traded in the counter as against average daily volume of 2.40 lakh shares in the past one quarter.
The stock hit a high of Rs 138.80 and a low of Rs 133 so far during the day. The stock had hit a 52-week high of Rs 198.90 on 13 December 2012. The stock had hit a record low of Rs 54.40 on 31 May 2012.
The stock had underperformed the market over the past one month till 8 May 2013, rising 6.24% compared with the Sensex's 8.42% surge. The scrip had also underperformed the market in past one quarter, declining 3.66% as against Sensex's 2.59% rise.
The small-cap company has equity capital of Rs 108.21 crore. Face value per share is Rs 10.
SKS Microfinance's total income rose 42.3% to Rs 101.98 crore in Q4 March 2013 over Q4 March 2012.
SKS Microfinance said it could improve profitability in Q4 March 2013 on account of robust growth in assets with the core interest income in non-Andhra Pradesh states increasing by 15% to Rs 90 crore in Q4 March 2013 over Q3 December 2012. The company's loan disbursements surged 65% to Rs 1295 crore in Q4 March 2013 over Q3 December 2012 while incremental draw downs registered a 201% jump on sequential basis to Rs 1704 crore in Q4 March 2013. The non-Andhra Pradesh loan portfolio outstanding on sequential basis surged 35% to Rs 2016 crore in Q4 March 2013.
The company's cost of borrowing has come down significantly to 12% in Q4 March 2013 over Q3 December 2012 while collection efficiency in 16 non-AP states has further improved to 99.9% in Q4 March 2013, from 99.8% in Q3 December 2012, SKS Microfinance said in a statement.
Foreign Institutional Investors (FIIs), which held 13.41% stake in the company as on 31 March 2012, raised their exposure to 35.94% as on 31 March 2013, SKS Microfinance said in a statement.
SKS Microfinance's net worth stood at Rs 390 core as on 31 March 2013. The company's capital adequacy ratio (CAR) as of 31 March 2013 stood at 32.8% while cash and bank balance stood at Rs 895 core as on 31 March 2013.
Commenting on the company's performance, Mr S. Dilli Raj, CEO, SKS Microfinance said, "With fully providing for the AP exposure, managing the supply-side shock, cost structure optimization and recapitalization as the building blocks of our turnaround strategy, we returned to profitability in Q3 FY 2013 and, with second quarter of profitability, the financial turnaround of SKS Microfinance is completed and sustained. These gains should accelerate on account of our strong capital base, robust liquidity as also improved productivity and cost efficiencies. Our debt-equity leveraging improved to 4.1 times in Q4 FY 2013 from 2.7 times in Q3 FY 2013 (2.3 in FY 2012)".
SKS Microfinance reported net loss of Rs 297.14 crore in the year ended 31 March 2013 (FY 2013), lower than net loss of Rs 1360.60 crore in the year ended 31 March 2012 (FY 2012). Total income declined 25.4% to Rs 352.56 crore in FY 2013 over FY 2012.
SKS Microfinance is a non-banking finance company (NBFC), registered and regulated by the Reserve Bank of India, whose mission is to provide financial services to low-income households.
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