SKS Microfinance has reported a 38.4 per cent fall in net profit to Rs 34.15 crore for the quarter ending December 31, 2010, as compared with the Rs 55.45 Crore net profit that it had reported for the corresponding period in 2009. The revenues of SKS Microfinance during the quarter increased by 44.5 per cent to Rs 384.68 crore from Rs 266.21 crore reported in 2009.
Loan Provisioning
The decrease in profit is a result of a 10-fold increase in provisioning and writing off of bad loans arising in the state of Andhra Pradesh. According to a statement issued by the company’s spokesperson on Monday evening to the press, the amount provisioned included an additional Rs 26.98 Crore to meet the recommendations of the Malegam committee.
The Malegam Committee had stated than an MFI will have to at all times, maintain an aggregate provision for loan losses, which shall be either 1 percent of the outstanding loan portfolio, or 50 percent of the aggregate loan installments overdue between 90 days and 180 days, or 100 percent of the such instalments due for over 180 days, whichever is higher.
The share prices of SKS on the National Stock Exchange (BSE) lost more than 3 percent and closed at Rs 661 on Tuesday. For the three months ending 31st December, SKS’s share price has dropped by more than 50 percent while the Sensex has gained 2.19 percent.
The detailed breakup of SKS Microfinance Results are given below
| Result Period |
01-October 2010 to 31-December-2010 (Third Quarter) |
| Result Type |
Unaudited, Non-Cumulative, Non-Consolidated |
SKS Microfinance – Q3 Numbers
| Description |
Amount( in lakhs) |
| Net Sales/Income from Operations |
36334.91 |
| Other Operating Income |
2133.14 |
| Increase/Decrease in Stock in trade and work in progress |
- |
| Consumption of Raw Materials |
- |
| Purchase of traded goods |
- |
| Employees Cost |
8866.60 |
| Depreciation |
380.53 |
| Other Expenditure |
14817.31 |
| Total Expenditure |
24064.44 |
| Profit from Operations before Other Income, Interest & Exceptional Items |
14403.61 |
| Other Income |
479.29 |
| Profit before Interest & Exceptional Items |
14882.90 |
| Interest |
9703.14 |
| Profit after Interest but before Exceptional Items |
5179.76 |
| Exceptional items |
- |
| Profit(+)/Loss(-) from Ordinary Activities before tax |
5179.76 |
| Tax Expense |
1764.30 |
| Net Profit(+)/Loss(-) from Ordinary Activities after tax |
3415.46 |
| Extraordinary Items |
- |
| Net Profit (+) / Loss (-) for the period |
3415.46 |
| Dividend (%) |
- |
| Face Value (in ) |
10.00 |
| Paid-up Equity Share Capital |
7212.68 |
| Reserves excluding Revaluation Reserves |
- |
| Basic EPS before Extraordinary items (in ) |
4.74 |
| Diluted EPS before Extraordinary items (in ) |
4.47 |
| Basic EPS after Extraordinary items (in ) |
4.74 |
| Diluted EPS after Extraordinary items (in ) |
4.47 |
| Public Shareholding (Number of Shares) |
45451239.00 |
| Public Shareholding (%) |
63.02 |
| Promoter & Promoter group Number of Shares Pledged / Encumbered |
0.00 |
| Promoter & Promoter group Shares Pledged / Encumbered (as a % of total shareholding of Promoter and Promoter Group) |
- |
| Promoter & Promoter group Shares Pledged / Encumbered (as a % total share capital of the company) |
- |
| Promoter & Promoter group Number of Shares Non-encumbered |
26675527.00 |
| Promoter & Promoter group Shares Non-encumbered (as a % of total shareholding of Promoter and Promoter Group) |
100.00 |
| Promoter & Promoter group Shares Non-encumbered (as a % total share capital of the company) |
36.98 |
|
|
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