Shares in SKS Microfinance, the only listed Microfinance Company in India, plunged over 8 per cent Friday after the firm issued a profit warning for the June quarter.
The company expects to incur an operational loss of up to Rs 50 crore in the fiscal first quarter. The adverse financial performance is likely to continue for the rest of the fiscal as well, it said.
At 12.10 p.m., shares in the company traded 6 per cent lower at Rs 85.45 in a flat Mumbai market, off the day's low of Rs 83.20.
Financials of the company have been under pressure since the Andhra Pradesh government's crackdown on the MFI sector in October 2010, which resulted in a drop off in loan collections and a drying up of funding for microlenders. SKS Micro's business in Andhra Pradesh, which was a microfinance hub earlier, was also hit. The company's loan portfolio in Andhra Pradesh shrunk to Rs 236 crore in the March quarter from Rs 1,311 crore a year ago as it was forced to write off some credit.
SKS Micro's loss in the January-March quarter more than quadrupled to Rs 330 crore, reflecting the sliding fortunes of the country's beleaguered microfinance sector. It has been posting losses for the last six quarters.
Meanwhile, sources told NDTV Profit that the company has launch qualified institutional placement to raise Rs 167 - 278 crore (US $30 million-50 million) funds domestically. The
QIP offer is at a discount of 17 per cent at Rs 75.4 per share to yesterday's closing price of Rs 90.90.
Shares in SKS Microfinance, the only listed Microfinance Company in India, plunged over 8 per cent Friday after the firm issued a profit warning for the June quarter.
The company expects to incur an operational loss of up to Rs 50 crore in the fiscal first quarter. The adverse financial performance is likely to continue for the rest of the fiscal as well, it said.
At 12.10 p.m., shares in the company traded 6 per cent lower at Rs 85.45 in a flat Mumbai market, off the day's low of Rs 83.20.
Financials of the company have been under pressure since the Andhra Pradesh government's crackdown on the MFI sector in October 2010, which resulted in a drop off in loan collections and a drying up of funding for microlenders. SKS Micro's business in Andhra Pradesh, which was a microfinance hub earlier, was also hit. The company's loan portfolio in Andhra Pradesh shrunk to Rs 236 crore in the March quarter from Rs 1,311 crore a year ago as it was forced to write off some credit.
SKS Micro's loss in the January-March quarter more than quadrupled to Rs 330 crore, reflecting the sliding fortunes of the country's beleaguered microfinance sector. It has been posting losses for the last six quarters.
Meanwhile, sources told NDTV Profit that the company has launch qualified institutional placement to raise Rs 167 - 278 crore (US $30 million-50 million) funds domestically. The
QIP offer is at a discount of 17 per cent at Rs 75.4 per share to yesterday's closing price of Rs 90.90.
Shares in SKS Microfinance, the only listed Microfinance Company in India, plunged over 8 per cent Friday after the firm issued a profit warning for the June quarter.
The company expects to incur an operational loss of up to Rs 50 crore in the fiscal first quarter. The adverse financial performance is likely to continue for the rest of the fiscal as well, it said.
At 12.10 p.m., shares in the company traded 6 per cent lower at Rs 85.45 in a flat Mumbai market, off the day's low of Rs 83.20.
Financials of the company have been under pressure since the Andhra Pradesh government's crackdown on the MFI sector in October 2010, which resulted in a drop off in loan collections and a drying up of funding for microlenders. SKS Micro's business in Andhra Pradesh, which was a microfinance hub earlier, was also hit. The company's loan portfolio in Andhra Pradesh shrunk to Rs 236 crore in the March quarter from Rs 1,311 crore a year ago as it was forced to write off some credit.
SKS Micro's loss in the January-March quarter more than quadrupled to Rs 330 crore, reflecting the sliding fortunes of the country's beleaguered microfinance sector. It has been posting losses for the last six quarters.
Meanwhile, sources told NDTV Profit that the company has launch qualified institutional placement to raise Rs 167 - 278 crore (US $30 million-50 million) funds domestically. The
QIP offer is at a discount of 17 per cent at Rs 75.4 per share to yesterday's closing price of Rs 90.90.
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