Magma Fincorp extends post result rally

Meanwhile, the S&P BSE Sensex was up 65.63 points or 0.33% at 20,004.67.

On BSE, 21,000 shares were traded in the counter as against average daily volume of 2.52 lakh shares in the past one quarter.

The stock hit a high of Rs 98.65 and a low of Rs 94.60 so far during the day. The stock had hit record high of Rs 110.40 on 10 January 2013. The stock had hit a 52-week low of Rs 54.25 on 17 May 2012.

The stock had outperformed the market over the past one month till 9 May 2013, jumping 20.44% compared with the Sensex's 9.4% rally. The scrip had also outperformed the market in past one quarter, surging 8.13% as against Sensex's 2.33% rise.

The small-cap company has equity capital of Rs 37.99 crore. Face value per share is Rs 2.

Shares of Magma Fincorp have rallied 10% in two trading sessions from a recent low of Rs 87.95 on 8 May 2013, after the company after market hours on 8 May 2013 reported strong Q4 March 2013 results. The stock had surged 8.18% to settle at Rs 95.15 on Thursday, 9 May 2013.

Magma Fincorp's consolidated net profit jumped 85.3% to Rs 44.15 crore on 53.9% growth in total income to Rs 505.94 crore in Q4 March 2013 over Q4 March 2012.

Magma Fincorp's consolidated net profit surged 86.8% to Rs 138.24 crore on 57.5% growth in total income to Rs 1701.47 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

The company's total assets under management (AUM) surged 38% year-on-year to Rs 18378 crore as on 31 March 2013.

Magma Fincorp registered a net interest spread (NIS) of 4.91% in FY 2013, up from 3.4% in FY 2012.

Magma Fincorp said the performance in FY 2013 was significant in the backdrop of a difficult year for the industry when major products either stayed flat or de-grown. Collection too faced a tough year due to uncertain economy and constrained cash flows affecting a large segment of customers, Magma said. Despite these difficulties, the company was able to record a healthy collection efficiency of 98.2% in FY 2013, Magma Fincorp said in a statement.

With regard to the business outlook for the current year, the company said that it expects to leverage on the expanded basket of products and 75 new branches opened in FY 2013 to maintain its growth rate.

Magma Fincorp is one of the largest non-banking finance companies (NBFC) in India engaged in providing commercial vehicle finance, construction equipment finance, car and utility vehicle finance, Suvidha loans (refinance), strategic construction equipment finance, tractor finance, SME loans and loans against gold to individual and corporate customers. The company has 275 branches in 21 states and 1 Union Territory.

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