SKS Micro Result Update: Mind-boggling numbers

powerfulpicks result update: Some highlights of how SKS Microfinance has grown and is still growing are mentioned below:

·       SKS has reported profit after tax (PAT) of Rs 67 crores versus Rs 18 crores earlier, a growth of 265% (YoY).

·       Net sales rose 92% to Rs 284 crore versus Rs 148 crore.

·       Gross income rose 82% to Rs 314 crore

·       Networth stood at Rs 1,016 crore as on June 30, 2010.

·       Capital adequacy ratio was at 25% as on June 30, 2010.

·       Incremental loan disbursements stood at Rs 2,283 crore, a growth of 81% (YoY).

·       Return on asset (ROA) is at 6.4% for Q1FY11, compared to 4.9% for the entire last year.

·       Gross loan portfolio stood at Rs 4,578 crore as on June 30, 2010 and client base at nearly 73 lakhs (as of now).

·       SKS had the lowest gross NPA of 0.33% as of March 2010, among financial institutions; at end of Q1FY11, this has further reduced to 0.23%

·       Interest yield for quarter was 25.2%, financial cost has reduced to 6.6% for the quarter, net interest margin (interest yield minus operating cost) is around 12.5%.

·       Loan loss for the quarter reduced to 1.1% from 1.5% for the whole year.

·       SKS Microfinance will replace Cals Refineries Ltd in the BSE-500 Index, which represents more than 90% of the total market capitalization on Bombay Stock Exchange.

·       Some brokerage houses have now initiated coverage on SKS with a target similar to what powerfulpicks had already given earlier.

·       Looking back, gross revenue had grown at a CAGR of 176% in last 4 years ended March 2010 while net profit rose at a CAGR of 223% over the same period.

·       SKS is expected to grow its loan portfolio at a CAGR of 58% over the next 3 years.

·       Another good news for SKS is the comment from Finance Minister Pranab Mukherjee who said that the Reserve Bank of India (RBI) may soon allow microfinance institutions (MFIs) to set up banks. SKS has no banking plans as of now, but this shows our Govt's faith and commitment towards microfinance in India.

·       SKS now has a network of 2266 branches, spread across 19 states and 341 districts. Till March 2010, the number of branches was 2029. SKS added 237 more branches in just 6 months!

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