In a move to step up confidence levels, which were dealt a blow by the acrimonius exit of SKS Microfinance founder Vikram Akula, SKS Trust Advisors ? the original promoter of SKS and an entity run by persons close to Akula ? has raised its shareholding in the micro-finance company to 9.01%. It has also sought a seat on the company’s board of directors. SKS Trust, run independently by Biksham Gujja, a scientist and mentor to Vikram Akula, is also mulling a further increase in stake as well.

After the exit of Akula in November 2011, the firm had lost about 80% value of in share price and nearly Rs 1,290 crore was written off. SKS Trust, which is the original promoter and one of the largest shareholders, has stayed away from any active participation for the last two years.

Speaking to FE, Biksham Gujja, chairman of SKS Trust, said the stake of SKS Trust was increased from 7.72% to 9.01% as on July 9, 2013. “We are reiterating for a board seat and our presence will increase the confidence levels and strengthen operations of the company. If required, we may buy more stake in the company depending on the situation,” he said.

On July 19, SKS Trust wrote another letter to the management of the SKS Microfinance requesting for a board seat . “Since we are entitled for the board’s seat, we have been requesting the management for quite some time,” he said. However, in its reply, SKS Micro said, `?We follow the procedure prescribed in this regard under the Company Act, 1956, which is applicable to all shareholders.”

SKS Trust Advisors said it had 7.9% stake in June and 7.84% in March 2013. This means the combined holding of SKS Trust Advisors and Akula together is 9.84% which place them little below 10% mark that allows the minority shareholders to move the CLB.

NBFC net up 85%

SKS Microfinance has registered a net profit of R5 crore in Q1 against a loss of R38.8 crore in the same period last year. Seqentially, company’s net profit grew by 85.18% from R2.7 crore in the previous quarter. This is the company’s third consecutive quarter of profit after the turnaround in the third quater of FY13 when it recorded a profit of R1.2 crore.

The company has registered a four-fold increase in operating profit to R16 crore in Q1 from R4 crore in Q4 last fiscal. Total revenue increased by 21% to R123 crore from R102 crore in Q4 of FY13. Net interest income increased by 26% to R63 crore in the first quarter of the current financial year from R50 crore in previous quarter as a 51% increase to R830 crore from R550 crore in the same period.

The non-Andhra Pradesh portfolio grew by 63% to R2,003 crore from R1,229 crore on a Q-o-Q basis. The average portfolio outstanding increased by 14% between Q4 FY13 and Q1 FY14, said a company statement. fe Bureau