See slight positive surprise on PAT for FY14: SKS Micro

Ekta: The company had guided a profit of around Rs 55-60 crore for FY14 post Q1 numbers. Given the nine months profit that you generated of around Rs 42 crore, the company needs around Rs 13-18 crore in the fourth quarter to achieve the guidance. Is SKS then in a position to surpass the profit guidance for FY14?

A: We guided Rs 55 crore to Rs 60 crore for this year and year-to-date (Y-T-D) profit after tax (PAT) are at Rs 42.5 crore. So normally Q4 is probably the best quarter in a financial year. That is the seasonality into this business. So there could be a slight positive surprise on the PAT level for FY14.

Ekta: What will your guidance on net interest income (NII) be, what is the sustainable run rate?

A: NII is a function of how much of off balance sheet transactions we do also. So without getting into the nitty-gritty, what we are doing is we have already shared it with the BSE and NSE that we have a board meeting on February 4 to get the business plan for FY15-16 approved, probably will come back again and give a detailed guidance on those numbers.

Latha: So this February 4 board meeting is it for restating guidance or is there a change in strategy itself?

A: No, as we said it is primarily business plan approval, understandably as you are right. So the whole product and other strategies will also be reviewed and end of the day business plan is a mere translation of those strategies. So that will get approved on February 4 and we will issue a guidance on that.