SKS Micro jumps on turnaround

SKS Microfinance is doing very well today morning, currently up 5.21% at Rs.134.40, with an intra day high and low at Rs.138.80 and Rs.132.50 respectively. Volumes have doubled up from its two week average of over 2 lakh shares to 4.20 lakh shares today morning.

The stock is in the green after the company reported a turnaround in its Q4FY13 numbers. It  posted a net profit of Rs 2.7 crore v/s a net loss of Rs.330 crore in Q4FY12. Total income rose 44% at Rs.95 crore (YoY). The company has stated that it could vastly improve the performance due to robust growth in assets with  the  core interest income in non-Andhra Pradesh states increasing by 15% to Rs 90 crore in Q4FY13 v/s Rs.78 crore in Q3FY13.

What also helped is that is the decline in its cost of borrowings.  It has come down significantly to 12% from 13.2% (QoQ) and at the same time, collection efficiency in 16 non-AP states improved to 99.9% v/s 99.8% in Q3 and much better than 97.6% in the first quarter of Fy13.