SKS Microfinance announces results for third Quarter

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.sks microfinance 2011 results

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 Period01-October 2010 to 31-December-2010 (Third Quarter)
Result TypeUnaudited, Non-Cumulative, Non-Consolidated

SKS Microfinance – Q3 Numbers

DescriptionAmount( in lakhs)
Net Sales/Income from Operations36334.91
Other Operating Income2133.14
Increase/Decrease in Stock in trade and work in progress
Consumption of Raw Materials
Purchase of traded goods
Employees Cost8866.60
Other Expenditure14817.31
Total Expenditure24064.44
Profit from Operations before Other Income, Interest & Exceptional Items14403.61
Other Income479.29
Profit before Interest & Exceptional Items14882.90
Profit after Interest but before Exceptional Items5179.76
Exceptional items
Profit(+)/Loss(-) from Ordinary Activities before tax5179.76
Tax Expense1764.30
Net Profit(+)/Loss(-) from Ordinary Activities after tax3415.46
Extraordinary Items
Net Profit (+) / Loss (-) for the period3415.46
Dividend (%)
Face Value (in )10.00
Paid-up Equity Share Capital7212.68
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 / Encumbered0.00
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-encumbered26675527.00
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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