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Profit is expected to get support from operating profit but may get impacted by higher base (in the year-ago period) due to lower provisions. Profit in Q2FY15 jumped to Rs 56.7 crore from Rs 16.34 crore year-on-year.
Analysis of SKS Microfinance results
SKS had guided a profit of around Rs 55-60 crore for FY14 post Q1 numbers. The company has already generated about Rs 42 crore profit in the first nine months. For the company, the fourth quarter is the best quarter. Dilli Raj, the CFO expects a slight positive surprise on PAT level for FY14.
Hyderabad-based SKS Microfinance, which had gone through a turbulent phase sprang a positive surprise by reporting a net profit of Rs 5 crore in the first quarter (April-June) against a net loss of Rs 39 crore in the corresponding quarter of the previous financial year.
SKS Microfinance has slipped 5% to Rs 114 after reporting a net loss of Rs 262 crore for the quarter ended September 2012 as compared to loss of Rs 39 crore in previous quarter due to higher provisioning.
Dilli Raj, chief financial officer of SKS Microfinance says, the company should revert to the path of profitability by Q3.
The "India Shining" marketing slogan was created back in 2004 by the BJP and truly India Inc lived up to it for as many as seven years in a row. But sadly this is about to change and clear signs of it now visible from both market and macro data reported in last one year.
Shares of SKS Microfinance, India's largest and only listed microfinance company, fell over 8% in opening trades after it posted a third consecutive quarter of loss.
Vikram Akula is confident of a revival in collections and says that in 18 out of 19 states, outside of Andhra, loan repayment have been to the tune of 96%.
SKS Microfinance, India's largest and only listed microfinance company, reported a net loss of Rs 69.77 crore (Rs 697.7 million) for Q4FY11, compared with a profit of Rs 628.9 million (Rs 62.89 crore) a year earlier.