- PAT up 25% at Rs 45.1 crore.
- Net Income Margins up 100 bps YOY to 6.41%
- Compliant with RBI provisioning norms upto FY 17
Hyderabad, 4th February 2015: Leading asset finance company, Magma Fincorp Limited announced the Q3, FY 15 results today, that reflected strong growth in Profit after Tax (PAT), Assets under Management (AUM) and Net Interest Margins over corresponding quarter of last year. Disbursements grew 16% to Rs 2835 cores and total assets under management recorded an impressive increase of 13% to Rs 19503 crores as on 31 December 2014. The company increased the Net Interest Margins by 100 bps taking it up to 6.41%, translating to a 25% increase in Profit After Tax to Rs 45.1 crores.
On YTD basis, Magma reported PAT of Rs 133.1 crore, up 17% over corresponding period of FY14. Magma continues to recognize NPA at 4 months default which is two years ahead of 2017 as per regulatory requirement for NBFCs to move to 120 dpd NPA recognition norm and hence are well positioned to transition to the revised Prudential norms issued by the RBI without any impact on the profitability of the company.
Commenting on the company’s performance, Mr. Sanjay Chamria, Vice Chairman and MD, Magma Fincorp Limited said, “In the backdrop of a challenging environ emanating essentially from erratic cash flows in the customer’s hands, our remaining focused on the bottom line by consistently ensuring realignment of the mix of product / market and customer segment has stood us in good stead and has resulted in an increase of a robust 25% in PAT. While visualizing more than 18 months back the fact of a low GDP growth we made substantial investment in a technology driven customer-centric re-engineering of our sales and collections process as also norms for lending and such efforts have started producing satisfactory results for us and we are confident of continuing to reflect healthier bottom line going forward, added Mr. Chamria.