Bharat Financial surprises positively in a tough quarter

Healthy prospects, reasonable stock valuations emerge as key positives

A better-than-expected showing in the December 2016 quarter (Q3) boosted the stock of Bharat Financial Inclusion (BFIL), or the erstwhile SKS Microfinance, on Wednesday. The scrip surged 10 per cent to Rs 745.15 against one per cent rise in the S&P BSE Sensex. In the quarter, hit by demonetisation, there was a sequential fall in the company’s loan disbursements, assets under management (AUM) growth as well as the net interest margin, which is a profitability indicator. Despite these adversities, the company restricted the decline in net profit to two per cent sequentially. The net profit figure of Rs 143 crore