Magma Shrachi Finance Limited, one of India's leading retail asset financing companies reported a 58% jump in revenue for the quarter ended 30 June 2008. The company recorded Rs 138.51cr in total revenue against Rs 87.42 crore registered for the corresponding period last year. Despite a slow down in primary industry sales due to higher interest rates and increase in fuel prices, the Company registered an impressive 43% growth in disbursals at Rs 1016.25 crore during the quarter under review, up 43% from Rs 708.8 crore for the corresponding period last year. Assets under Management of the company has crossed Rs 8000 crore during the period under review.

Commenting on the performance, Sanjay Chamria, Vice Chairman & Managing Director said, "I am happy to announce that Magma has delivered a healthy performance which has helped us to start the new fiscal on a firm note. We have been successful in enhancing our disbursements significantly leading to healthy increase in our asset base. Our assets under management as on 30 June 2008 stood at Rs. 8005 crore.

During the quarter, the Company further enhanced its product portfolio by launching personal loans in May 2008. We plan to stabilize the roll out of the offering by Q3 FY2009, after which we plan to increase volumes on a sustained basis. The personal loan offering has allowed us to diversify our product mix thereby enabling us to cater to a broader audience.

During Q1 FY2009, the Company's disbursements grew faster than the industry growth in asset finance disbursements, demonstrating the robustness of our business model. We have repeatedly displayed the ability to deliver healthy results in variable and challenging market conditions and we expect to continue this momentum going forward."

Magma's growth in disbursements was driven by robust performance in the car and utility vehicle as well as the construction equipment segments. Disbursements in the construction equipment business grew 43% to Rs. 259.2 crore during the quarter compared to Rs. 180.6 crore for the corresponding quarter last year. Car and utility vehicle segment was a key growth driver during the quarter. Total disbursements in this segment amounted to Rs. 299.1 crore in Q1 FY2009, recording an increase of 74%. Tie-ups with Maruti Suzuki, Hyundai, Mahindra & Mahindra and General Motors and penetration into urban markets have enabled Magma to perform strongly in this segment.

Magma continued its healthy performance in the commercial vehicle segment and was successful in increasing disbursements faster than the market growth. Total disbursements in the commercial vehicle segment amounted to Rs. 375.3 crore in Q1 FY2009 versus Rs. 303.1 crore for Q1 FY2008, recording a 24% increase.

The positive synergies from the merger with Shrachi Infrastructure Finance Ltd during 2006-07 are now reflected in the Company's financial and operational performance.

Magma has launched personal Loans in 54 locations across India focused mainly at the rural and semi-urban areas. The product roll out will be stabilized by Q3 FY2009 following which the Company expects to achieve a sustained target of Rs. 30 crore a month with plans to scale up going forward.