Magma Fincorp lost 5.19% to Rs 74.05 at 14:48 IST on BSE after consolidated net profit declined 4.5% to Rs 42.17 crore on 10.9% growth in total income to Rs 561.22 crore in Q4 March 2014 over Q4 March 2013.
The Q4 result was announced after market hours on Wednesday, 7 May 2014.
Meanwhile, the S&P BSE Sensex was up 27.10 points or 0.12% at 22,351.
On BSE, so far 13,000 shares were traded in the counter as against average daily volume of 64,571 shares in the past one quarter.
The stock hit a high of Rs 77.50 and a low of Rs 74 so far during the day. The stock had hit a 52-week low of Rs 62 on 26 September 2013. The stock had hit a 52-week high of Rs 103 on 21 May 2013.
The stock had outperformed the market over the past one month till 7 May 2014, surging 10% compared with the Sensex's 0.09% fall. The scrip had also outperformed the market in past one quarter, jumping 21.75% as against Sensex's 9.56% rise.
The small-cap company has equity capital of Rs 38.02 crore. Face value per share is Rs 2.
Magma Fincorp's consolidated net profit rose 9.8% to Rs 151.83 crore on 24.4% growth in total income to Rs 2117.43 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
The company's total loan book rose 10% YoY to Rs 17877 crore as on 31 March 2014.
The Capital Adequacy Ratio (CAR) of the company stood at 16.6% as on 31 March 2014.
Magma Fincorp said that the company recognizes NPA at 4 months default as compared to the RBI requirement of 6 months as also makes a higher provisioning for standard assets. As a result, including the reversal of income on such early recognised NPA contracts the company has made an additional provision of Rs 40.47 crore, Magma Fincorp said. In addition to the above and in line with the RBI guidelines, the company recognizes income on the securitisation and direct assignment transactions only when redeemed in cash, even if they are standard assets, and as a consequence the gross income on securitisation and assignment of loans is lower by Rs 74.36 crore on a consolidated basis, Magma Fincorp said in a statement.
Commenting on the company's financial performance, Mr Sanjay Chamria, Vice Chairman and Managing Director, Magma Fincorp said, "In the back drop of a challenging environment and inconsistent cash flows in our customer's hands, we have yet again exhibited resilience in our performance and have been able to control the NPA levels even though we follow a principle of recognising NPAs at 4 months default, a good 2 months earlier than what the RBI regulates it at. In my view the worst on the portfolio quality is behind us and we are truly on path to recovery and will remain focused on maintaining our profitability and portfolio quality. Moreover, our more than required provisions for both the standard and non performing assets and recognition of income on securitized portfolio only when recovered coupled with several prudent and strategic interventions made by us in the collections process during the year will in my view hold us in good stead and result in significant improvement in our performance during the FY 15".
Mr. Chamria added, "While the last few quarters have been challenging for the entire financial services industry, we have used this opportunity to implement various initiatives and best practices in our sales function all focused at delivery of impeccable services to our customers. With our constantly evolving product mix, further growth of the mortgage business and the General Insurance business becoming profitable during FY15, I hope the current year will be more productive for us and with the overall collections performance already, improving we hope to roll back the provisions made during the past year and improve the overall profitability of the group".
Magma Fincorp is a non-deposit taking non-banking finance compancy (NBFC), registered with the Reserve Bank of India as an asset finance company. Magma Fincorp provides a bouquet of financial products including financing of utility vehicles & cars, commercial vehicles, construction equipments, used commercial vehicles, tractors and SME loans.
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