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SKS microfinance’s Q4FY12 net loss widens at Rs 330 crore

08 May 2012 Evaluate

Hurt by higher bad debt provisions and loan write-offs, India's only listed micro-lender SKS Microfinance reported a fifth straight quarterly loss. The company’s net loss widened to Rs 330 crore for the three months ended March from a loss of Rs 69.77 crore for the same period a year earlier. Total income of the Hyderabad-based firm in the fourth financial quarter fell 69% to Rs 52.8 crore. The company’s debt provisions and write-offs climbed to Rs 278 crore from Rs 106 crore.

However, the company reported 11% quarter on quarter (Q-o-Q) portfolio growth at Rs 1320 crore in Q4FY12 in its non-Andhra Pradesh operations reversing the declining trend over the previous five quarter. The company has been under a cloud since 2010 after the state of Andhra Pradesh, the hub of the industry, accused micro-lenders of exploiting poor borrowers with exorbitant lending rates and abusive debt collection practice.

Meanwhile, the company has continued to maintain its high collection efficiencies in 17 non-Andhra Pradesh states with the collection figure for the quarter ending March 2012 standing at 95%.

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