Magma Fincorp posts Q4 loss of Rs 122 crore on bad loans
The company reported improvement in its net interest margin during current quarter to 7.6%.
By Anuradha Himatsingka, ET Bureau | Updated:
Kolkata: Magma Fincorp reported a loss of Rs 121.91 crore for the fourth-quarter (Q4) ended March 31, 2017, compared to net profit of Rs 65.30 crore reported in the previous corresponding quarter.
"Loss on account of non-performing asset ( NPA) sale of Rs 678 crore impacted the PAT by Rs 145 crore," the company said in a statement. The company further stated that "Q4FY17 and FY17 was a watershed quarter and a year for Magma Fincorp with substantial clean-up of the old NPAs and launch of many new initiatives under a new and stronger leadership team."
The non-banking finance company said that FY17, especially the latter half of the year was characterized by extraordinary impacts of demonetization and of NPA sale by the company. The company's board of directors proposed a dividend of Re 0.80 paise per share.
The company reported improvement in its net interest margin during current quarter to 7.6% compared to 7.5% in corresponding quarter last year. The company also reported collection efficiency of 102% in Q4FY17 compared to 90% in Q3FY17 reflecting significant improvement in portfolio performance.
However, weak primary demand and the company’s cautious approach immediately after demonetization led to lower disbursement in Q4 FY17, declining 21% y-o-y and 12% q-o-q. Assets under management at Rs 16,101 crore as on March 31, 2017, was down 11% y-o-y due to lower disbursements and sale of NPAs.
Commenting on the company’s performance, Magma Fincorp vice chairman & managing director Sanjay Chamria said, “FY17 was a defining year for Magma. We disposed off our entire hard bucket NPAs and took several initiatives to embark on a profitable growth path in FY18."
"Loss on account of non-performing asset ( NPA) sale of Rs 678 crore impacted the PAT by Rs 145 crore," the company said in a statement. The company further stated that "Q4FY17 and FY17 was a watershed quarter and a year for Magma Fincorp with substantial clean-up of the old NPAs and launch of many new initiatives under a new and stronger leadership team."
The non-banking finance company said that FY17, especially the latter half of the year was characterized by extraordinary impacts of demonetization and of NPA sale by the company. The company's board of directors proposed a dividend of Re 0.80 paise per share.
The company reported improvement in its net interest margin during current quarter to 7.6% compared to 7.5% in corresponding quarter last year. The company also reported collection efficiency of 102% in Q4FY17 compared to 90% in Q3FY17 reflecting significant improvement in portfolio performance.
However, weak primary demand and the company’s cautious approach immediately after demonetization led to lower disbursement in Q4 FY17, declining 21% y-o-y and 12% q-o-q. Assets under management at Rs 16,101 crore as on March 31, 2017, was down 11% y-o-y due to lower disbursements and sale of NPAs.
Commenting on the company’s performance, Magma Fincorp vice chairman & managing director Sanjay Chamria said, “FY17 was a defining year for Magma. We disposed off our entire hard bucket NPAs and took several initiatives to embark on a profitable growth path in FY18."
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