SKS Microfinance Ltd posted a net loss of Rs 219 crore in the first quarter ended June 30, 2011 due to a re-classification of assets and provisioning in Andhra Pradesh portfolio. In the corresponding quarter of the previous year, the Hyderabad-based company earned a profit of Rs 66 crore. According to the unaudited financial results of the company, the total revenue too declined significantly at Rs 163 crore (Rs 306 crore). The loss per share stood at Rs 30.24. “Due to the continued evolving environment, with no precedence following the enactment of AP MFI Act and the resultant impact on the field operations in Andhra Pradesh, the company reassessed its estimates on the portfolio in the AP,'' SKS said in a notice to the BSE. As a consequence, all loans that were due for 180-720 days were classified as sub-standard assets with a provision of 10 per cent.
Meanwhile, the board of directors of the company approved a proposal to make Qualified Institutional Placement (QIP) of eligible securities up to Rs 900 crore by issue of equity shares and/or any securities convertible into equity shares to qualified institutional buyers. SKS' scrip declined 2.01 per cent to at Rs 521.70 on the BSE on Tuesday.