Magma Fincorp Q2 net rises marginally to Rs 77 cr

Non-banking financial company (NBFC) Magma Fincorp Friday reported a marginal increase in consolidated net profit to Rs 77 crore for the quarter ended September, from Rs 73 crore in the year-ago period.

Assets under management (AUM) of the company increased by 6 per cent year-on-year to Rs 16,623 crore during the quarter under review, a release said.

The company's disbursements grew at 34 per cent, while net interest margins (NIMs) rose by 70 basis points to 9 per cent in the quarter.

Vehicle finance disbursements rose 21 per cent, driven by a growth of 62 per cent for commercial vehicles and 33 per cent for the used assets segment.

In the mortgage business, home loan disbursement grew 219 per cent, according to the release.

The SME business saw its disbursement grow by 67 per cent year-on-year during the quarter.

Gross non-performing asset (NPA) of the firm stood at 9.5 per cent and net NPA at 4.4 per cent.

Kailash Baheti, group chief financial officer, Magma Fincorp, said the company's cost of fund stood at 9.1 per cent during the quarter, and the firm expects to increase the borrowing cost by 25 to 50 basis points in upcoming quarters.

The company sold Rs 500 crore of its loan asset, mainly from vehicle finance, to banks and mutual fund in October.

It plans to raise Rs 1,000 crore through securitisation in the next two months, said Baheti.

The company general insurance arm, Magma HDI, registered a steady growth of 68 per cent year-on-year in gross written premium (GWP).

Motor insurance contributed 78 per cent of the company's portfolio.

Its scrip ended the day 0.75 per cent up at Rs 107.35 apiece on the BSE, against 1.68 per cent rise in the benchmark.