Magma Fincorp hits 52-week high post Q4 results

The stock rallied 9% to Rs 138 on BSE on back of heavy volumes

Magma Fincorp hit 52-week high of Rs 138, up 9% on BSE, after the company’s assets quality improved for the quarter ended March 2017 (Q4FY17) on sequential basis.

In Q4FY17, the non-banking finance company (NBFC) reported a loss of Rs 122 crore, mainly due to substantial cleanup of the old non-performing assets (NPA). 

Loss on account of NPA sale of Rs 678 crore impacted the net profit by Rs 145 crore. However, the gross and net NPA ratios improved sharply to 6.7% and 5.6% respectively as on 31 March 2017 against 9.9% and 7.5% as on 31 December 2016, Magma Fincorp said in a statement.

The company reported improvement in its net interest margin (NIM) during current quarter to 7.6% compared to 7.5% in corresponding quarter last year.

Commenting on the company's performance, Sanjay Chamria, Vice Chairman and Managing Director, Magma Fincorp said, "FY17 was a defining year for Magma. We disposed off our entire hard bucket NPAs and took several initiatives to embark on a profitable, growth path in FY18.

The worst with respect to NPAs now firmly behind us. With a healthier balance sheet and a growth strategy in place, we are confident of a better performance going forward.' added Chamria.

At 1:38 pm; the stock was up 6.4% at Rs 135 on BSE as compared to 0.16% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 2.18 million shares changed hands on BSE and NSE so far.