Magma Fincorp Q1 net dips 13%; disbursals up 36%

NEW DELHI: Non-banking finance company Magma Fincorp on Tuesday reported a 13 per cent decline in net profit at Rs 14.25 crore for the April-June quarter of the current fiscal.

The company's profit after tax was Rs 16.40 crore in the first quarter of 2010-11, Magma said in a filing to the Bombay Stock Exchange.

However, the Kolkata-based company's disbursals went up by 36 per cent to Rs 1,422 crore at the end of the June quarter.

"The decline in profit is on account of change in accounting norms and not securitising any receivables during the quarter," Magma Fincorp CFO V Lakshmi Narasimhan said.

The company plans to to add 25 more branches during the current fiscal. Currently it has 172 branched in operation.

"The company aims to grow at a faster pace in the Q2 by focusing on both core and high yield products," the statement added.

The company expects a 50 per cent growth in its disbursement during the current fiscal. At the end of 2010-11 fiscal Magma Fincorp made disbursals worth Rs 5,415 crore.