Leading Asset Finance Company, Magma Fincorp Limited, on Saturday reported a 26% per cent growth in revenue at Rs 155.28 crore in the Q3 of the current fiscal as against Rs 123.01 crore in the corresponding quarter in last year. Disbursals during the quarter was recorded at Rs 883.49 crore, a marginal 4% higher compared to 852.21 crore it disbursed in Q3 of last year. The company posted a profit before tax (PBT) of Rs 10.14 crore, down by 41% over the corresponding quarter last fiscal. It reported profit after tax (PAT) of Rs 6.70 crore (due to change in accounting practice, comparison with corresponding quarter not possible).

Announcing the result, Magma Fincorp Limited Vice Chairman & Managing Director Sanjay Chamria said the company was severely challenged during the quarter under review due to the slow down of economy and major degrowth in the automobile sector. "We would consider having done the best we could in the current scenario with the industry reeling due to the economic meltdown which engulfed the country. The primary sale of assets hit all time low forcing the major automakers to trim production. This did impact Magma along with the other financial institutions in the country however, thanks to a collective team effort, we have been able to record growth in disbursements and revenue for the quarter. Magma's highlight for the quarter was a very well orchestrated performance in Collections improving on all fronts," he added. He informed that company is hopeful of a better performance in the Jan-March quarter.

Magma's YTD business disbursal at the end of Q3 was at Rs 2785 crore - 24 per cent up from Rs 2251 crore achieved during the first nine months of the last fiscal.

The financing of car, commercial vehicles and construction equipment continued to be the main area of Magma's activities as it accounted for almost 82 per cent of total business.

For further information, please contact:

Kaushik Sinha
AVP - Corporate Communications & Admin
Magma Fincorp Limited