Media Centre - Press Coverage
Magma Fin to gain from infra push
The Economic Times, 3 March 2010, Kolkata
Magma Fincorp's stock has been on an upward trajectory over the past few months while the benchmark Sensex remained more or less flat. Its stock has gained 54% since the start of December 2009, while Sensex fell by 2%. However, during the past one year, the stock has underperformed the Sensex. A non-banking financial company (NBFC), Magma offers financing for commercial vehicles, passenger cars and construction equipment. The three categories together accounted for 87% of disbursements for nine months ending December 2009. The strength of its business model lies in the fact that it is well diversified with a presence in several markets, which makes it less risk-prone. Even in terms of location of branches, its presence is well diversified, with 151 branches across 21 states. For instance, Magma's NIM rose to 5.1% in the nine months ending December 2009 from 3.6% in the previous fiscal. The management has indicated that the share of high-yielding products will increase in future - a move, which will propel its earnings. Meanwhile, the collection efficiency of the company improved to 99.2% in the December 2009 quarter from 95.7% during the corresponding period a year ago. Going forward, its earnings are likely to grow at higher rates. At present, the stock is trading at 10 times its earnings.
Magma sets target for Bihar
The Hindu Business Line, 19 February 2010, Kolkata
Magma Fincorp Ltd aims to achieve 35 per cent growth in disbursements in Bihar this fiscal. The company aims to disburse loans to the tune of Rs 120 crore against Rs 88 crore in the State last year, according to a press statement issued by the company. Magma has already disbursed about Rs 95 crore between April 2009 and January 2010, said Mr Sanjay Chamria, Vice-Chairman and Managing Director of the company. "Commercial vehicles and tractor loans have been the major growth drivers this year in the state. While our commercial vehicles disbursals have grown by almost 38 per cent, tractor finance has grown by a staggering 294 per cent," Mr Chamria said. Magma has four branches in Bihar in Patna, Muzzaffarpur, Sasaram and Bhagalpur and employs about 100 people in the State.
Financing Opportunities Likely To Increase
The Economic Times, 28th January, 2010, Kolkata
Interview of Mr Sanjay Chamria, Vice Chairman & Managing Director, Magma Fincorp Limited
The global meltdown that engulfed the financial markets impacted our sector adversely with primary sales of assets plummeting during the recession days. Commercial Vehicle sales dropped over 40%, Construction Equipment sales dropped by over 30%, even Car sales was almost flat. Recovery of customer dues took a beating because of low consumer confidence and lack of funds. Since the performance of asset financing industry essentially is a fall out of primary sales of assets, all the above factors impacted many of the players who either stopped lending or slowed down. Fortunately, Magma continued with disbursals every day and managed to buck the trend due to certain specific proactive measures taken. We took a cautious approach while continuing with our disbursals. Being one of the first companies in our industry to have recovered from the global meltdown, the key learnings from Magma's perspective are keeping people motivated, maintain adequate liquidity, avoiding asset liability mismatch, following prudent lending norms, having an efficient recovery mechanisms and ensuring effective cost management. Our focus on the high yield products too will continue. Our emphasis on strong collections mechanism too will continue and we would look for opportunities to leverage the same. General Insurance will be the new business for us for which we have signed a joint venture with HDI Gerling of Germany.
Magma Fin CEO - Designate
The Financial Express, 26 January 2010, Kolkata
Magma Fincorp Ltd, India's leading retail finance company, has announced the appointment of Swaraj Krishnan as CEO-designate of its insurance joint venture, Magma HDI General Insurance Company Ltd. Krishnan will look into the implementation, growth and expansion of Magma HDI across the country and will be responsible for overseeing all business operations.
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