Magma Fincorp net down 17% on shrinking business

KOLKATA: Non banking finance company Magma Fincorp reported a 17% fall in its second quarter net profit at Rs 39 crore on shrinking revenue amid sluggish economic activities.

Revenue or income from business fell to Rs 505 crore from Rs 527 crore, the company said in a statement.

The company expects to grow disbursal in the second half of the fiscal and start building the asset under management again, with normal monsoons, rise in minimum support prices of agricultural commodities.

Magma said tractors financing, used assets, mortgage and small & medium enterprises segments now contribute 67% of total disbursal and 60% of total loan book.

Sanjay Chamria, the company vice chairman said that the industry odds are still not favourable, yet it continued to improve the share of used assets, tractors, SME and mortgage.

The Magma group, taking the earnings of the subsidiaries, however posted a slim growth at Rs 51 crore compared with Rs 49 crore in the year ago period.

It may be noted the company has allotted 90,000 equity shares of the face value of Rs 2 each on preferential basis under the Employee Stock Option Plan. Consequently, its total paid-up equity share rose Rs 47 crore.