SKS Microfinance Ltd, India's only listed microfinance firm, has narrowed its net loss to Rs 262.15 crore in the three months to September 30, from Rs 384.54 crore in the corresponding period of previous year.

While Andhra Pradesh's microfinance sector has been struggling since late 2010, SKS Microfinance's enjoyed an increase of 25 per cent in its loan disbursement in non-Andhra Pradesh States to Rs 690 crore during the second quarter of current fiscal.

Core interest income in non-Andhra Pradesh states jumped 7 per cent to settle at Rs 68 crore.

Total income dropped from Rs 121.83 crore in the second quarter of previous fiscal to Rs 77.56 crore in the same quarter of this fiscal.

S. Dilli Raj, Chief Financial Officer of SKS Microfinance, said that the firm's strategy to optimize its cost structure and cash-flow management helped it withstand microfinance crisis in Andhra Pradesh.

Commenting about the quarterly results, Raj added, "With an optimized cost structure, recapitalization and increasing debt fund flow, we are progressing well on the path to profitability."

SKS Microfinance also successfully completed a sale of its shares to institutional investors in the second quarter.

During the quarter, the microfinance company kept on reducing staffing and the number of branches as part of its efforts to slash costs. In the April-June quarter, the company slashed its workforce by 2,619 and the number of its branches by 103.