SKS Microfin posts Rs 39-cr loss in first quarter
SKS Microfinance Limited, the only publicly-listed microfinance institution in the country, reported a net loss of Rs 38.83 crore for the June quarter.
The company incurred a net loss of Rs 183 crore during the same period a year ago. Total income from operations stood at Rs 74.48 crore against Rs 160.64 crore in the corresponding quarter last year, reflecting a decline of 53.63 per cent.
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In a press release on Friday, SKS said its networth of Rs 398 crore, as at June 2012, increased to Rs 617 crore after a qualified institutional placement, and would increase to Rs 650 crore after the proposed preferential allotment.
“We embraced the principle that, in a crisis period, cash flows are more important than balance sheet and balance sheet is more important than P&L (profit and loss). We raised an incremental debt of Rs 1,360 crore in the fourth quarter of FY12, and held a cash and bank balance of Rs 403 crore at the end of Q1 of FY13," said S Dilli Raj, chief financial officer of SKS Microfinance.
Raj said the write-off of Rs 1,128 crore on the Andhra Pradesh portfolio cleansed the balance sheet and that the company’s focus now was on P&L and hence the headcount and branch realisation.
“Our immediate priority is to return to the path of profitability and with the capital raise, we should reach there sooner than later," he added.
The non-Andhra Pradesh costs reduced to Rs 9.5 crore during the quarter under review, from Rs 32 crore in the sequential quarter.
The company’s branch consolidation and headcount realisation continued in the first quarter, with the number of branches being reduced by 103 and headcount by 2,619, quarter-on-quarter, the release said.