SKS Micro surges over 8%

SKS Microfinance is doing very well today, the stock currently up almost 8.5% at Rs.107.80, with an intra day high at Rs.110.80.Volumes are huge at almost 5 lakh shares compared to less than even 80,000 shares over past two weeks average.

The stock has surged post its good numbers for Q1FY14. The company announced a PAT of Rs. 5 crore in Q1FY14, its third consecutive quarter of profit post its turnaround in Q3-FY13. It showed a four-fold increase in operating profit at Rs. 16 crore v/s Rs. 4 crore (QoQ). Net interest income increased by 26% at Rs. 63 crore (QoQ). This was thanks to the 51% rise in loan disbursements at Rs.830 crore in current Q1. Consequently, the non-Andhra Pradesh portfolio grew by 63% (YoY) to Rs. 2,003 crore in Q1 and the average portfolio outstanding increased by 14% (QoQ). Loan disbursement in Q1 stood at Rs.830 crore, which is 17% of FY14 guidance of Rs.4,500–4,800 crore. Gold loan comprises 3% of gross non-AP loan portfolio. company has guided a PAT of Rs.55-60 crore for Fy14.