Magma Fincorp, a Kolkata-based asset finance company, today said its net profit for the quarter ended September 30, 2012 increased by 33% from a year earlier to Rs 28 crore. Higher loan disbursements and improved net interest margin aided the firm's earnings during the quarter.
"As a result of the superlative performance in disbursements, increase in yields and consistently efficient collections, the profit after tax registered a strong growth," Sanjay Chamria, vice chairman and managing director of Magma Fincorp, said in his post-earnings comments.
The asset finance company's revenue during the quarter surged by 58% to Rs 398 crore, while its net interest margin expanded by 43 basis points to 4.91% in July-September period.
Magma Fincorp disbursed Rs 2,262 crore loans, up 45%. "Given that our core strength is financing income generating assets aimed at sustenance, we are confident of achieving 40% plus growth in disbursements in 2012-13," Chamria said. The company reported strong growth in car, used commercial vehicle, tractor and SME (small and medium enterprise) loans.
Its car financing business grew by 61%, used commercial vehicle loan operations expanded by 105%, and tractor financing increased by 74%. SME loans were up by 75%.
During the quarter Magma Fincorp added 33 new branches and closed the quarter with 240 branches. "We will add another 40 branches this year," Chamria said.
