Magma Fincorp Q1 net profit jumps 75% to Rs 68 crore

Non-banking finance company (NBFC) Magma Fincorp today reported a 75 per cent rise in its consolidated net profit to Rs 68 crore for the first quarter ended June 30.

The company had reported a net profit of Rs 39 crore in the April-June quarter of previous fiscal.

Magma said its disbursements during the quarter grew 25 per cent to Rs 1,840 crore during June quarter of 2018-19, as against Rs 1,473 crore a year ago.

The company continues to focus on its SME lending business resulting in 34 per cent increase in SME disbursals year-on-year, it said in a release.

The NBFC also said there were impressive growth in disbursement, net interest margin (NIM) and PAT.

NIM for quarter moved up 100 basis points (1 percentage) to 8.6 per cent, aided by lower cost of funds and higher earning assets.

"We have successfully transitioned to IndAS accounting regime in this quarter and improved our provisioning coverage ratios as also created sufficient provisioning on standard assets. It will reduce the volatility in future earnings and will pave the way for impressive growth in the current and future years," said Sanjay Chamria, Vice Chairman and Managing Director, Magma Fincorp Limited.

With the normal monsoon and increased MSP for crops and higher outlay for rural markets by the government, Magma is poised to achieve higher growth in the coming quarters and will take full advantage of the tailwinds, he said.

Shares of Magma Fincorp closed up 2.22 per cent at Rs 144.95 apiece on BSE.