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Magma Fincorp PAT up 70% Registers 41% growth in Disbursement
* Annual PAT up 71% to Rs. 122.1 crore, Disbursement up 33% to 5415 crore, Collection Efficiency at 101.7%, NIM of 5%, CAR of 18.2% AUM Rs 10907 crore as on 31 March ‘11
Mumbai, 19 April 2011: The fourth quarter results of Magma Fincorp Limited reflected strong
all round performance by the company for the financial year. It reflected significant increase in
disbursements, Revenue, PBT, PAT and in Assets under Management (AUM) over corresponding
quarter last year. The disbursements increased at a steady 41% to 1955 crore while revenue
increased 24% to Rs 269.8 crore. The company recorded Profit before Tax (PBT) of Rs 66.4 crore
and Profit after Tax (PAT) of Rs 44.9 crore, an increase of 57% and 70% respectively over the
corresponding period last year.
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The AUM as on 31 March 2011 was Rs 10907 crore.
Magma has witnessed high growth in all the four quarters and Q4 was the best ever for the
company. The annual results of the company reflect the interventions made by the company
during the last three years in terms of strengthening its processes, underwriting norms and
performance parameters. Magma registered annual disbursals of Rs 5415 crore, up 33% over the
FY 10, resulting in improvement in its market share in the Car, Tractor and Commercial vehicle
segments. Annual revenues grew by a solid 21% to record Rs 874 crore and PAT registered in
FY 11 was the highest ever for the company at Rs 122.1 crore, up 71%. Incidentally, this is the
first time the company registered PAT of over 100 crores in a financial year. Annual EPS and CAR
stood at Rs.8.38 (up 45%) and 18.2% respectively.
Commenting on the company’s performance, Mr Sanjay Chamria, Vice Chairman and
Managing Director, Magma Fincorp Limited said, “Magma has responded brilliantly to the
market opportunities in all the product segments, be it commercial vehicles, car or the high yield
products such as Tractors, Suvidha (refinance) or SME Loans. Aligned with the rapid growth in
primary sales, Magma too has been able to grow its disbursals in Q4 by 41%. We successfully
increased the share of our high yield products to 19% from 13% which along with superior
Treasury Management and efficiency in handling cost of funds ensured we achieved NIM of 5.0%
for the year. The proudest highlight of our performance of the year is our collections efficiency which touched new high and has now set new industry benchmark at
101.7%. As a consequence, our write offs have gone down considerably from Rs. 41
crores in FY 10 to Rs 24 crores for FY 11 which translates into an all time low 0.24%
of the AUM. This stupendous performance reflects our portfolio quality and our
unflinched faith in our process pertaining to various aspects of our business includingthe underwriting norms. On account of stringent write off policies and exemplary
collections focus, Magma continues to have ZERO Gross and Net NPA/s.”
With the expansion of its network in the Western and Southern markets, Magma is now at
the cusp of an explosive growth and is looking to grow its topline by 50% during FY 12 with
specific focus on the High yield segments of tractors, used CVs and SME segment. The High yield
segment is targeted to contribute 25% of the disbursals for the year which will take our NIM upto
5.25% from the 5% for FY 11.
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 2.36 lac customers and has assets of INR 10907 crores under management. The
company has 172 branches in 20 states and 1 union territory and employs about 5150 people.
Magma has 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, which since has received
R1 license from the insurance regulator.
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