Magma Fincorp Q2 net profit rises 33%

Last Updated: Fri, Oct 19, 2012 05:38 hrs
An employee counts Indian currency notes at a cash counter in New Delhi

Magma Fincorp, a Kolkata-based asset finance company, on Thursday said its net profit for the quarter ended September 30 this year, increased by 33 per cent from a year ago period to Rs 28 crore.

Higher loan disbursements and improved net interest margin aided the firm's earnings during the quarter.

"As a result of the superlative performance in disbursements, increase in yields and consistently efficient collections, the profit after tax registered a strong growth," Sanjay Chamria, vice-chairman and managing director of Magma Fincorp, said in his post-earnings comments.

The asset finance company's revenue during the quarter soared 58 per cent to Rs 398 crore, while its net interest margin swelled by 43 basis points to 4.91 per cent in the July-September period.

Magma Fincorp disbursed Rs 2,262 crore loans, up 45 per cent. "Given that our core strength is financing income generating assets aimed at sustenance, we are confident of achieving 40 per cent plus growth in disbursements in 2012-13," said Chamria.

The company reported strong growth in car, used commercial vehicle, tractor and SME (small and medium enterprise) loans.

The company's car financing business grew by 61 per cent, used commercial vehicle loan operations expanded by 105 per cent, and tractor financing increased by 74 per cent. SME loans were up by 75 per cent.

During the quarter, Magma Fincorp added 33 new branches and closed the quarter with 240 branches.

"We will add another 40 branches this year," said Chamria.

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