SKS Microfinance plunges over 8% on muted results
Shares of SKS Microfinance on Tuesday closed with a decline of over 8 percent on the bourses, after they pared some of the losses from a 10-percent intra-day plunge on the back of poor second-quarter results.
The country's only listed micro-finance company on Monday reported a net loss of Rs 384 crore for the July-September quarter on account of lower income and higher provisioning Monday, which was a market holiday.
Reacting to the muted numbers, the shares of SKS Microfinance opened on a sluggish note this morning and then tanked by as much as 10 percent on the BSE to touch its lowest permissible limit for the day at at Rs 188.15.
This was also the stocks' lowest level in a year.
At the end of Monday's trade, the stock was quoted at Rs 192.15, down 8.06 percent on the BSE.
On the NSE, the stock settled for the day at Rs 193.10, down by 7.70 percent.
On the volume front, over 5.89 lakh shares exchanged hands on the BSE and more than 15.42 lakh shares got traded on the NSE.
Marketmen attributed the sharp fall in the counter as a knee-jerk reaction to the company's poor Q2 numbers.
The company reported a net loss of Rs 384 crore for the September quarter, as against a profit of Rs 80.55 crore in the July-September quarter of the previous fiscal.
During the quarter, SKS's provisions against bad loans rose to Rs 353 crore, a twenty-fold jump from Rs 17 crore in the year-ago period.