SKS Microfinance tanks after Q2 results; hits lower circuit

Shares of SKS Microfinance today plunged 5 per cent to touch the lower circuit after the company reported Rs 262 crore net loss for the quarter ended September 30.

The SKS scrip tanked 5 per cent and hit a lower circuit of Rs 114.25 on the BSE.
At NSE, the stock was down 4.96 per cent to Rs 114.95.

It had incurred a loss of Rs 385 crore in the same quarter last fiscal. The company's standalone total income from operations stood at Rs 78 crore against Rs 122 crore in the corresponding period last fiscal.

Meanwhile, the company said it has received a showcause notice from authorities demanding Rs 34.2 crore service tax.

"The company has received show-cause notice from service tax authorities on October 23 to explain as to why the assignment of portfolio loans should not be classified under recovery service agent and the related income from the asset assignment transaction should not be subjected to service tax," SKS Microfinance had said yesterday.

In the broader market, the BSE benchmark Sensex was trading at 18,699.69, up 63.87 points at 1100 hrs.