Kolkata, 19 May 2008: Magma Shrachi Finance Limited (MSFL), one of the fastest growing financial services companies in India, announced its results for the year and fourth quarter ended 31 March 2008.

Key developments

• Merger with Shrachi Infrastructure Finance proves to be earnings accretive for FY2008 and has enabled the Company to penetrate into the southern and western zones

• Sharp rise in Assets Under Management which stand at Rs. 74,123 million as on 31 March 2008 - this makes Magma one of the largest retail financing companies in India

• The Company currently has 161 branches across the country and 3,974 employees - by the beginning of Q2 FY2009, MSFL expects to expand its network across India by an additional 50 branches

• Relatively new Southern and Western regions have contributed well towards business growth even as consolidation efforts were progressing during FY2008

• The Company has completed roll-out on the IT, HR and product offering front for the ex-Shrachi locations and new locations are expected to perform to full potential during FY 2008-09; this should boost disbursements going forward

• Enters into tractor financing during the year through a joint venture with International Tractors Limited in order to diversify its product offerings and leverage its strong rural and semi-urban branch network

• MSFL is currently financing around 200 tractors a month and expects to significantly improve this figure going forward

• Looking to progressively launch financing of other agri-sector products

• Continues to deliver better than the market growth rate across its product portfolio

Performance Highlights

• Disbursements have improved notably to Rs. 35,128 million, an increase of 38% over the Rs. 25,441 million recorded for FY 2006-07

• Construction equipment segment has grown significantly Disbursements from this segment stood at Rs. 9,520 million, implying an increase of 74.9% over last year

• Magma has been able to maintain an overall growth of 20% in its commercial vehicle segment despite a distinct slowdown in sales of new trucks - this was largely attributable to the merger, good dealer penetration and entry into newer markets

• The Company has tied up with Maruti Suzuki Limited resulting in a strong performance in the cars and utility vehicle segment - further, achieving penetration in non-traditional urban markets also enabled MSFL to enhance passenger car financing volumes

Commenting on the performance for Q4 FY2008 & FY2008, Mr. Sanjay Chamria, Vice Chairman and Managing Director of Magma Shrachi Finance Limited, said:

"I am glad to announce that we have been able to deliver a strong financial performance across our business segments in FY2008. Assets Under Management have increased significantly to Rs. 74,123 million as on 31 March 2008 making us one of the largest retail non-banking financial service providers in the country.

The construction equipment financing business has performed strongly owing to our geographical expansion especially in the South. Consolidation efforts are complete in the South and this region holds significant promise for the future. Our tie up with Maruti has also proved to be highly successful and assisted us in increasing disbursements in the passenger car division.

The expansion of our geographical reach and the enhancement of our product offerings, together with our ability to move aggressively in a competitive environment give us confidence in our ability to increase Magma's market share in future.

FY2008 performance overview (compared with FY2007)

• Total asset base is higher by 29% to Rs. 74,123 million from Rs. 57,425 million

• Total disbursements increases 38% to Rs. 35,128 million from Rs. 25,441 million

• Net income from operations enhances 69% to Rs. 4,714.3 million from Rs. 2,783.3 million

• Operating profit at Rs. 1,053.8 million from Rs. 741.4 million, an improvement of 42%

• PAT better by 61% to Rs. 505 million from Rs. 314 million

• EPS stood at Rs. 18.39 compared to Rs. 13.22.

Note: Net NPAs maintained at zero level given the prudent write-off norms followed by the Company

About Magma Shrachi Finance Limited

Magma Shrachi Finance Limited (MSFL) is one of the fastest growing financial services company in India. It has a well-diversified product portfolio comprising Commercial Vehicle Finance, Car & Utility Vehicle Finance, Construction Equipment Finance, Used Commercial Vehicle Finance, Strategic Construction Equipment Finance and Fee Based Business with assets under management of nearly Rs. 74 billion as on 31 March 2008. The Company follows an excellent credit appraisal policy through well-laid processes, which has helped it build a quality asset base over the years.

MSFL currently operates through 161 branches in 20 states and employs 3,974 people. The Company has a focus on rural and semi urban India which generates major part of its business. It has a pan India presence with a strong network in North, East, Central and South regions with an increasing presence in the West.

For more details, please contact:

Kaushik Sinha
Email: ksinha@magma.co.in

Certain of the statements and figures included in this release may be forward looking statements and/or based management's current expectations and beliefs concerning future developments and their potential effects upon Magma and its subsidiaries/ associates. There can be no assurance that future developments affecting Magma and its subsidiaries/ associates will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties and there are important factors that could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements. Magma does not intend, and is under no obligation, to update any particular forward-looking statement included in this release.