SKS Microfinance Q1 loss at Rs 39 cr
Hyderabad: SKS Microfinance Friday said its net loss has narrowed down to Rs 39 crore in the quarter ended June 30, from a net loss of Rs 329 crore in the quarter ending March 31, 2012.
SKS's revenue from non-Andhra Pradesh states rose by 11 percent to Rs 79 crore in the first quarter of this fiscal from Rs 72 crore in the fourth quarter in previous fiscal, a statement said.
The collection efficiency in the non-Andhra Pradesh states continued to be robust with the collection figure at 98 percent in April-June period compared to 95 percent in January-March quarter, it added.
The company held a cash and bank balance of Rs 403 crore at the end of June quarter, said S Dilli Raj, Chief Financial Officer, SKS Microfinance.
"We embraced the principle that, in a crisis period, cash flows are more important than balance sheet and balance sheet is more important than Profit & Loss (P&L).
"We raised incremental debt of Rs 1,360 crore in Q4-FY12 ...The write-off of Rs 1,128 crore on the AP portfolio cleansed the balance sheet," he said.
Our immediate priority is to return to the path of profitability and with the capital raise we should reach there sooner than later, Dilli Raj said.
Now, SKS said, the focus is on P&L and hence the headcount and branch network rationalisation. It reduced the number of branches by 103 and slashed headcount by 2,619 quarter on quarter.
Its personnel cost stood at Rs 48 crore in April-June quarter as against Rs 56 crore in January-March quarter.
SKS shares ended 0.72 percent down at Rs 90.15 apiece on the BSE.
SKS Microfinance Limited (SKS) is a non-banking finance company (NBFC-MFI), registered and regulated by the Reserve Bank of India. It operates across 18 states.