Magma Fincorp fourth quarter net profit up over 19 per cent

KOLKATA: Net profit of asset-financing NBFC Magma Fincorp increased by over 19 per cent at Rs 42.17 crore as compared to Rs 35.4 crore in the previous similar period. Income of the company increased six per cent at Rs 552.99 crore during the quarter as against Rs 527 crore in the previous corresponding period.

CFO of Magma Fincorp Laxmi Narasimham said due to the drop in economic growth, the commercial vehicles and the construction equipment divisions had shown a degrowth in credit advances. For the financial year 2013-14, the company's loan book increased 10 per cent to Rs 17,877 crore.

On the NPA front, the company had made an incremental provisioning of Rs 41 crore for the fiscal. The Magma board today approved raising of Rs 500 crore additional capital to meet future business growth plans. Magma's capital adequacy ratio stood at 16.6 per cent against RBI's stipulated 15 per cent, he said.