Mumbai, February 2016: Leading asset finance company, Magma Fincorp Ltd today announced the Q3 FY16 unaudited results that reflected a healthy increase of 76 bps YoY in Net Income Margin (“NIM”) to 7.18%, that drove a significant increase of 36% in profits before tax (PBT) to Rs 74.0 crs (up from Rs 54.4 crs in last corresponding period). PAT was up by 16% to Rs. 52.3 crs despite a higher tax outgo. The company also reported a marginal 1% yoy increase in revenues at Rs 622 crore. AUM as on 31st December 2015 was at Rs 18,521 crs.
Magma has been growing its business in housing, SME and used assets besides maintaining its presence in tractors leading to improvement in profit margins and the share of these product lines is expected to grow even further in the next few quarters. Another significant change introduced by the company has been the increase in its footprint across 1900 talukas in 22 states through creation of virtual offices and its 3,600 field officers operate with fully loaded handheld devices to service the dealers and customers for meeting their funding needs and servicing existing loans. It has significantly boosted the productivity and efficiency and is expected to contribute to higher operating efficiency in coming quarters.
Commenting on the performance, Mr. Sanjay Chamria, Vice Chairman & MD, Magma Fincorp, said “Magma’s impressive performance during the quarter is the result of improvement in efficiency improvement resulting in lower opex ratio and improvement in margins through higher contribution of profitable products. The improved ability to service our dealers and customers in tier lll towns and taluks, through new business model will enable us to capitalize on the benefits in the coming quarters and I am quite confident that despite tough economic scenario prevailing, we should be able to produce better performance. We will continue our focus on innovation and digitization of business processes to achieve consistency in service delivery and customer delight. I also expect economy to rebound thanks to the fiscal measures the Govt is planning to usher in and these will further boost the fortunes of Rurban India and the companies like Magma operating the space will benefit from the same.”