Magma Fincorp Q3 net profit falls 3.3%

Magma Fincorp, a Kolkata-based asset finance company, today said its consolidated profit after tax and minority interest for the quarter ended December 31, 2013 fell to Rs 35.2 crore from Rs 36.4 crore a year earlier due to rise in finance cost.Total income from operations grew by 21.1 per cent from a year earlier to Rs 513.5 crore during the three-month period. Net interest spreads improved by 95 basis points from a year earlier to 5.70 per cent at the end of the quarter.

"In the back drop of a difficult environment and inconsistent cash flows in our customers' hands, we remain focused on maintaining our profitability and portfolio quality. Being consistent with this focus, while we have improved our net spreads and operating efficiency, we are seeing a turnaround in collection efficiency. We will continue to work on further improving the portfolio quality," Sanjay Chamria, vice chairman and managing director of Magma Fincorp, said in his post-earnings comments.

Finance costs increased to Rs 306.3 crore in October-December quarter from Rs  252.2 crore a year earlier. The company has also made non-performing asset (NPA) provisions of Rs 129.2 crore so far this financial year.