Magma Fincorp psots 3.6% rise in Q1 profit

Asset finance company Magma Fincorp posted a 3.6 per cent in its net profit at Rs 46.87 crore for the quarter ended June 30, 2016.

The company's net profit in the same quarter of the last fiscal year stood at Rs. 45.22 crore.

Its net income from operations, however, remained flat at Rs 605.84 crore as against Rs. 608.77 crore earned during the first quarter of 2015-16.

While the Asset Backed Financing business witnessed disbursement growth of 12 per cent, SME lending recorded a robust 25 per cent increase. Consolidated Net Interest Margins (NIMs) grew by 48 bps to 6.9 per cent against 6.4 percent of the April-June period of 2015-16.

Magma continues to focus on agriculture (tractors), used assets and burgeoning SME segments. In mortgages, it has reduced ticket size and its reach in to its target segment, the informal customer segment in tier 2-3 towns. These four segments now contribute 62 per cent of the total disbursals and 59 per cent of the total loan book.

Magma Fincorp has a base of around 5,00,000 active customers and manages a Loan book of Rs 17,796 crore. The company has 257 branches in 22 states and employs around 8980 people.