Kolkata, 15 July 2010: High on an all time best performance recorded in FY 10, asset finance company Magma Fincorp today announced the first quarter result for FY 11 which shows strong all round performance by the company reflecting significant increase in disbursements, Revenue, PAT, Net Interest Margin (NIM) and in Assets under Management (AUM) over corresponding quarter last year. While disbursements increased 42% to record 1047 crore for the quarter, total income revenue increased 23% to Rs 179.4 crores. Highest ever NIM of 5.7% for the quarter helped the company register Profit before Tax (PBT) of Rs 27.7 crore and Profit after Tax (PAT) of Rs 18.2 crore, an increase of 63% and 61% respectively over the corresponding period last year.

The biggest highlight of Magma's performance in the Q1 of FY 11 was the Collections performance which not only improved upon 99.8% recorded in FY 10, but took it past 100% to record at 101.6%.. On the business side, major part of growth came from Commercial Vehicle and Car finance, and high yield products. Accordingly, the company improved its share of high yield products (used commercial vehicle finance, Tractor finance and SME finance) in the overall disbursement to 16% which coupled with better management of cost of fund contributed a very healthy NIM of 5.7%. The company recorded NIM of 5.1% in FY10.

Commenting on the company's performance, Mr Sanjay Chamria, Vice Chairman and Managing Director, Magma Fincorp Limited said, "The financial year has commenced on a happy note and Magma has responded very well to the changed scenario. Our performance has shown strong growth trajectory in all products and thus we have achieved 42% growth in disbursement, 61% growth in PAT and NIM too has improved from the past levels. The biggest highlight of our performance in the quarter was our collections performance which touched new high for the first quarter at 101.6%.

"Coming months will see Magma concentrating on growing the business aggressively with higher share of high yield products. We will also open 25 branches by December 2010 taking the tally well past 180 with emphasis on semi urban and rural markets. Magma also envisages sustaining high collection efficiency" added Mr Chamria.

About Magma Fincorp Limited

Magma Fincorp Limited ("Magma") is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company. The Company, having started operations over two decades back, is listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India.

Magma provides a bouquet of financial products including financing of Utility Vehicles & Cars, Commercial Vehicles, Construction Equipments, Tractors and SME Loans. Magma has a dedicated base of over 2.31 lac customers and has assets of approximately INR 9500 crores under management. The company has 157 branches in 20 states and 1 union territory and employs about 4700 people.

Magma has recently signed a joint venture with HDI Gerling, part of Talanx Group, Germany's third largest insurance group to start a general insurance company in India. The new company will be head quartered in Kolkata. The new insurance company since has obtained Reserve Bank of India approval and is currently awaiting the Insurance regulator IRDA approval for commencement of operations.