Magma Fincorp Q4 FY 15; PAT up 18% yoy at Rs 54.13 crore

Kolkata/Hyderabad, May 8, 2015: Leading BFSI company, Magma Fincorp Limited today announced the Q4 and FY15 consolidated financial results, maintaining healthy growth trajectory in Business, Revenue and Profits. `Net Income Margins improved during the quarter under review by 41 bps to 6.41%. The company’s Loan book as on 31 March 2015 stood at Rs 19,567 crore – up 9% YOY.

On Annualized basis, Magma reported PAT Rs 187.27 crore – up 17.3% over FY14. Business disbursals increased 11% to Rs 10,115 crores while Annual Revenue grew 13% to Rs 2385.98 crore. Magma continues to recognize NPA at 4 months default which is two years ahead of FY17 as per regulatory requirement for NBFCs to move to 120 dpd NPA recognition norm and hence are well positioned to transition to the revised Prudential norms issued by the RBI without any impact on the profitability of the company.

Commenting on the company’s performance, Sanjay Chamria, Vice Chairman and MD, Magma Fincorp Limited said, “inspite of a tough environment, emanating out of erratic cashflows in the consumer’s hands; our strong focus on quality origination and realignment of product, market and customer segments, helped us record a good 41 bps yoy improvement in NIM and an impressive 18% yoy increase in PAT in Q4 FY15. With a focus on servicing our customers with a better TAT and after sales service, we made significant investment in technology driven processes which have started producing results for us in Collections and Sales.” added Chamria.

“The company has completed the process of raising Rs 500 crore from a clutch of marquee international investors. While Mauritius-based LeapFrog Investments, one of the world’s largest impact investment funds, and India Value Fund Advisors, an investment fund dedicated on India, are new investors in the company, KKR is an existing investor. This shows the amount of faith and trust the investors have on the growth story and on the management capabilities of Magma.” added Chamria.

The company also added management depth by inducting Mr Atul Bansal as CFO. Atul brings to Magma over two decades of rich experience in strategy, investment and treasury functions with some large Indian and international organisations. We look forward to his contributions towards Magma’s growth. Chamria added.