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Magma Fincorp tumbles after subdued Q2 numbers

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Capital Market
Last Updated : Nov 04 2016 | 11:01 AM IST

Magma Fincorp lost 15.14% to Rs 97.80 at 10:43 IST on BSE after consolidated net profit rose 3.66% to Rs 50.40 crore on 1.72% decline in total income from operations to Rs 600.16 crore in Q2 September 2016 over Q2 September 2015.

The result was announced after market hours yesterday, 3 November 2016.

Meanwhile, the S&P BSE Sensex was down 58.10 points or 0.21% at 27,372.18.

On BSE, so far 2.49 lakh shares were traded in the counter as against average daily volume of 1.08 lakh shares in the past two weeks. The stock hit a high of Rs 114.90 and a low of Rs 95.65 so far during the day. The stock had hit a 52-week high of Rs 125.80 on 10 October 2016. The stock had hit a 52-week low of Rs 67 on 3 February 2016. The stock had outperformed the market over the past one month till 3 November 2016, advancing 8.47% compared with 2.88% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 9.14% as against Sensex's 0.96% fall.

The small-cap company has equity capital of Rs 47.39 crore. Face value per share is Rs 2.

The company's bottom line during Q2 September 2016 was boosted by surge in non-operational income. Other income jumped 60.42% to Rs 15.85 crore in Q2 September 2016 over Q2 September 2015.

Commenting on the company's performance, Sanjay Chamria, Vice Chairman and MD, Magma Fincorp said that the company has exhibited resilience in its performance despite the industry odds still not favourable. Magma expects better results with an improving rural economy going forward in the second half of the current financial year (FY 2017), added Chamria.

Magma Fincorp has announced a change in its top management team. Atul Bansal, chief financial officer (CFO) of the company has resigned to pursue other opportunities. The board has appointed Kailash Baheti, working with the company as chief strategy officer as the new CFO.

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Magma provides a bouquet of financial products including commercial finance, agri finance, SME finance and mortgage finance and has a general insurance subsidiary.

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First Published: Nov 04 2016 | 10:35 AM IST

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