Magma Fincorp pegs 30 per cent growth in tractor business

Retail finance player Magma Fincorp has projected over 30 per cent growth for this fiscal taking the total exposure in the tractor segment to 19 per cent from the existing 17 per cent even as sales have remained sluggish due to a weak monsoon.
"Our tractor business is about 17 per cent. We have grown after passenger car and utility vehicles. The next bigger business for us is tractor. That is the overall exposure. We will grow at more than 30 per cent year-on-year by the end of the year. That is the projection", Magma Fincorp Ltd, Vice-President, Dhrubashish Bhattacharya told reporters, here.

Noting that the Kolkata-based company registered a 46 per cent growth during the first quarter of this financial year despite contraction in total industry, Bhattacharya said "the industry has degrown due to poor monsoon. But we have grown. Industry is slated to grow at single digit we will grow at more than 30 per cent year-on-year at the end of the year. That is the projection".
He said though the tractor business was dull due to poor monsoon, tractors used in commercial activities was not impacted and in places like Bihar, Madhya Pradesh the commercial activities using tractors were high.

On the company's exposure in commercial vehicle segment, he said, "we are trying to remain flat. We intend it would not grow. We are waiting for the September month. Unlike other sector. We expect this sector will pick up in the festive season."
According to him the company exposure to passenger car and utility vehicle business is 29 per cent, commercial vehicle is 10 per cent, Suvedha (financing used passenger cars) 12 per cent.
To a query on fund raising plans, he said the board has cleared the proposal to raise about Rs 500 crore at its meeting held recently.

"I think, the Board has cleared to raise about Rs 500 crore..", he said but refused to elaborate further.