The SKS Juggernaut continues – Result Update FY14

SKS Microfinance Limited has announced a 41% year-on-year increase in the non-Andhra Pradesh portfolio to Rs. 2,837crore in Q4
FY14 from Rs. 2,016 crore in Q4-FY13(Rs. 2,364 crore in Q3-FY14). SKS Microfinance Limited also registered a 27% increase in PAT to Rs. 27.1crore in Q4-FY14 from Rs.21.4crore in Q3-FY14. This is the Company’s sixth consecutive quarter of profit post its turnaround in Q3-FY13. Loan disbursements grew to Rs.1,580 crore in Q4-FY14 from Rs. 1,399 crore in Q3-FY14(Rs.1,295 crore in Q4-FY13).
The Company had incremental draw-downs ofRs.1,713 crore in Q4-FY14. SKS Microfinance Limited had a net worth of Rs.459 crore and capital adequacy of 27.2%(20.7% without taking RBI dispensation on provision for the Andhra Pradesh portfolio) as of March 31, 2014. Cash and bank balances stood at Rs. 671 crore.

Thankfully, the stock has corrected from its recent highs and is stabilizing at around 230rs levels. If one wishes to accumulate, these are good levels and one should keep on adding it on declines. The growth is expected to continue at the same pace in this FY also.

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4 Responses to The SKS Juggernaut continues – Result Update FY14

  1. pp says:

    Whats your view on Nittn spinners?

  2. pp says:

    Ace got a question regarding holding for long term. Lets say x person has 1000 shares of sks micro. Now, what it be better if that person held that 1 lot( 1000 shares ) in the futures market and renewing every 2-3 months? The hold point is to continue holding for 2 years at least but renewing every 3 months. This way he can use extra capital else where. What do you think?

    • what if you bought at 365 and now its 345 and then you try to roll over, that 20rs difference (normally rolling over would also happen at some premium but for simplicity taking it out) is already lost, then your purchase price is effectively 385 and now extrapolate it. Only if the stock price is moving in one direction it would make sense or else its equally possible that roll over cost would kill you and your broker would forcefully sell it because of lower margin…recipe for disaster… dont try to be rich overnight….you need to have huge reserves for playing in F&O effectively and should be more than 100% sure of direction and momentum…

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