Magma Fincorp belts a stunner in Q1 FY 13, PAT up 93% to Rs 33.02 Crore

PRLog (Press Release) - Jul. 13, 2012 - Hyderabad, 12th July, 2012: Leading asset finance company, Magma Fincorp Limited today announced the Q1, FY 13 results, that reflected strong growth in business disbursals, Profits and Assets under Management (AUM) over corresponding quarter of last year. Inspite of a sluggish performance by the Auto, Equipment and Tractors Industries, Magma’s disbursements grew at a robust 45% to Rs 2057 crore, the company registered a phenomenal 93% growth in PAT to Rs 33.02 crore. Magma continued to grow its loan book faster than the industry, which has slowed down due to high interest rate environment and subdued economic outlook. As on 30 June 2012, the company’s Assets under Management was Rs. 13750 crore, registering a YOY growth of 25%.
   
Commenting on the company's performance, Mr Sanjay Chamria, Vice Chairman and Managing Director, Magma Fincorp Limited said, "Our performance has been resounding and our overall growth in disbursements across all our products have been terrific despite a sluggish industry, high fuel costs and inflation continuing to pull the economic growth down. While the disbursements have grown 45% YOY, we have at the same time also ensured that our spreads increased to 4.5% during the Q1. As a result of the superlative performance in disbursements, increase in yields as also in a consistently efficient and robust collections performance, the PAT registered a phenomenal 93% growth to 33.02 crore.” He added.

The company recorded strong growth in Car, Construction equipment, Suvidha (Refinance), Tractor and SME finance during the quarter under review compared to the corresponding period last year. While Car finance grew by 51%, Tractor and Suvidha (Refinance) grew by 85% & 100% respectively. Construction & Strategic Construction business grew by 40% during this period. The company recorded 73% growth in SME Finance.

The company had changed its accounting policy in tune with IFRS norms last year, with respect to amortization of securitization income and brokerage expenses pertaining to origination spread across the entire tenure of the contract instead of recognising the same upfront which has been validated by the healthy growth of earning assets by 96% YOY.  

“The company has taken an ambitious target of 40% growth of topline in FY 13 and we are happy to note that the Q1 itself has registered 45% growth. During Q1, FY 13, we have made significant progress in new businesses. While we have launched Gold Loan Finance in Mumbai and Kolkata in June 2012, we have also been accorded the necessary permission to start general insurance joint venture business by the regulator." added Mr Chamria.

Magma added 7 new branches during the period and has 207 branches as on 30 June 2012. “We will add another 60 branches this year, added Mr Chamria.

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