1. SKS Microfinance reports higher net profit at Rs 78 crore

SKS Microfinance reports higher net profit at Rs 78 crore

Loan disbursements jumped by 57% on y-o-y basis to Rs 2,665 crore in the second quarter from Rs 1,693 crore in the same period last fiscal

By: | Hyderabad | Updated: October 21, 2015 12:23 AM
sks microfinance

Loan disbursements jumped by 57% on y-o-y basis to Rs 2,665 crore in the second quarter from R1,693 crore in the same period last fiscal

SKS Microfinance has posted a net profit of Rs 78 crore in Q2 as against Rs 61.2 crore in the previous quarter. In the same quarter last fiscal, the profit had stood at Rs 56.8 crore.

The gross loan portfolio (GLP), excluding the states of Andhra Pradesh and Telangana, registered 14% growth q-o-q and 80% y-o-y growth to Rs 5,462 crore as opposed to Rs 3,043 crore in Q2 last fiscal and Rs 4,797 crore in Q1 this year.

The loan disbursements jumped by 57% on y-o-y basis to Rs 2,665 crore in Q2 from Rs 1,693 crore in Q2 last fiscal. During the quarter, the company had incremental drawdowns of Rs 1,569 crore from Rs 1,100 crore in the same period last year. The company has increased its profit guidance from Rs 235 crore to Rs 290 crore for FY16.

The marginal cost of borrowings stood at 11.2% while its weighted average cost of borrowings was 12.1% at Q2-FY16. The unavailed deferred tax benefit of Rs 425 crore will be available to offset tax on future taxable income.

Also, a minimum alternate tax (MAT) benefit of Rs 23 crore in Q2-FY16 has conservatively not been availed as P&L credit, despite supporting accounting standards, the companys said.

With effect from October 1, the company has been charging an interest rate of 20.75%, considered the lowest rate among global micro finance institutions, on its unsecured micro loans post three interest rate reductions.

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