On October 24th, SKS Microfinance, a publicly-traded microfinance institution (MFI) based in India, announced the release of its financial report for the second quarter (Q2) of 2010 ending September 30th.
Net profits jumped by 116 percent to INR 805.4 million (equivalent to USD 18.1 million), up from INR 373.5 million (equivalent to USD 8.38 million) in the same period last year. Revenues in Q2 also rose by 75 percent to INR 373 Crore (equivalent to USD 83.7 million), up from INR 2.13 billion (equivalent to USD 48 million) in the same period in the previous year. Earnings per share rose 51.1 percent to INR 11.74 (equivalent to USD 0.265) compared to the same period in 2009. The financial statements released are unaudited.
The stock of SKS, which has been hit hard by SKS’s unexpected decision to oust its former CEO Suresh Gurumani in the beginning of October, is widely expected to recover when markets open on Monday, October 26th.
About SKS Microfinance:
SKS Microfinance is an Indian microlender that delivers microfinance products through a group lending model to impoverished women in India. It is a for-profit, non-banking finance company which converted to a public limited company in May 2009 and launched an initial public offering on July 28, 2010. Equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. As of March 31, 2010, SKS Microfinance Private Limited reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 897 million, a gross loan portfolio of USD 653 million, a return on assets of 4.96 percent, a return on equity of 21.56 percent and 5.79 million active borrowers.
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Source Article: SKS Microfinance: 2nd quarter 2010 earnings:
http://sksindia.com/downloads/Q2FY11_Earnings_update.pdf
[2] MicroCapital Universe: SKS Microfinance:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance
[3] MICROCAPITAL BRIEF: CEO of India’s SKS Microfinance Steps Down, Stock Falls 6%:
https://www.microcapital.org/microcapital-brief-ceo-of-indias-sks-microfinance-steps-down-stock-falls-6/
[4] MICROCAPITAL BRIEF: SKS Microfinance Responds to Probe from Securities and Exchange Board of India on Expulsion of Former CEO Gurumani; Stock Falls Further 6%:
https://www.microcapital.org/microcapital-brief-sks-microfinance-responds-to-probe-from-securities-and-exchange-board-of-india-on-expulsion-of-former-ceo-gurumani-stock-falls-further-6/
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