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SKS Micro pegs Q1 operational loss at Rs 30-50 cr

G. Naga Sridhar Hyderabad | Updated on March 12, 2018 Published on July 13, 2012

SKS Microfinance Ltd has indicated that the operational loss during the first quarter of current financial year could be between Rs 30 crore and Rs 50 crore.

In its guidance to the Bombay Stock Exchange on Friday, the Hyderabad-based company said the “adverse financial performance of the company may continue for the rest of fiscal 2013.”

Explaining the reasons, it said an increase in the amount of loans assigned by it resulted in the enhanced levels of cash bank balance at Rs 689 crore as on March 31, 2012. This was not quickly redeployed, which in turn resulted in a relatively lower outstanding portfolio of loans.

“These and other factors resulted in our operational income being insufficient to meet the finance costs, personnel expenses and operating expenditure of the company,” SKS said.

As a consequence of these factors and present business conditions, the company expects to incur an operational loss in the first quarter of fiscal 2013.

In the fourth quarter of 2011-12, it suffered a net loss of Rs 330 crore.

QIP ISSUE

Meanwhile, the board of directors had decided on a QIP (Qualified Institutional Placement)e by way of issue of equity shares at its meeting held on Thursday.

July 12 was fixed as the relevant date for the purpose and accordingly the floor price is Rs 75.40 a share.

It approved preferential allotment of 44.50 lakh equity shares at issue price of Rs 75.40 a share to Kumaon Investment Holdings, a promoter of the company.

Shares of the Hyderabad-based company declined by 7.26 per cent to close at Rs 84.30 on the BSE on Friday.

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Published on July 13, 2012
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