SKS Microfinance turns profitable in Q3, shares up over 8%

Non-banking finance company SKS Microfinance rose as much as 8.4 percent in early trade on Friday as the company turned profitable in the third quarter of financial year 2012-13.

The company reversed the trend of seven consecutive quarters of losses and reported a small profit of Rs 1.2 crore in October-December quarter as against a loss of Rs 428 crore in a year ago period.

The gain was led by a 16 percent growth in core interest income in non-Andhra Pradesh states.

Total income from operations declined marginally to Rs 85 crore from Rs 87 crore during the same period. However, net interest income increased to Rs 50 crore from Rs 45.6 crore.

Provisions and write-offs fell sharply during the quarter at Rs 28.36 lakh as against Rs 233.56 crore seen in previous quarter.

At 10:39 hours IST, shares went up 3.6 percent to Rs 170.10 on Bombay Stock Exchange.

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