SKS Micro jumps up

SKS Micro in its Q3Fy14 numbers showed more than green shoots and that has pushed the stock into lush green on the BSE. The stock is currently up almost 3% at Rs.192.35, with an intra day high at Rs.196.80.

The stock has surged on the 19 times rise in net profit at Rs.21 crore which it posted for Q3FY14, thanks to its strategy of working outside Andhra Pradesh. Its non-AP Portfolio grew 58% (YoY) and 17% (QoQ) at Rs. 2,364 crore. Loan Disbursement grew 79% (YoY) and 43% (QoQ) at Rs. 1,399 crore. What also helped was the reduction in cost of borrowing, which fell from 16% in Q4FY12 to 13.8% in current Q3. Also its non-AP collection efficiency has improved from 95.6% in FY12 to 99.8% at end of 9MFY14. Economic value of the un-availed deferred tax provision of Rs 567 crore has also started showing up on the profit and loss statement.