Losses incurred due to sale of non-performing assets (NPAs) saw Kolkata-based asset-backed finance company Magma Fincorp report a consolidated net loss in Q4 of the fiscal; while its net profit for the full year (FY-17) dipped approximately 90 per cent.
Consolidated net loss for Q4 FY17 (January-March) stood at ₹114 crore, against a net profit of ₹65 crore in the year-ago-period. Full-year profit came down to ₹20 crore as against ₹211 crore in FY16.
Total income slid 12 per cent to ₹560 crore (₹633 crore), and for the full year it was ₹2,344 crore (5 per cent y-o-y decline).
On standalone basis, Magma reported a net loss of ₹102 crore in Q4. For the full year, standalone net profit stood at ₹6 crore (96 per cent y-o-y dip).
According to Kailash Baheti, CFO, Magma Fincorp, the company sold NPAs worth ₹678 crore during the fiscal, thereby incurring a loss of ₹211 crore at a profit before tax (PBT) level, and around ₹145 crore at the PAT level. The NPAs sold were mostly in categories such as asset-backed finances, including mortgages.
“The sale was necessary to improve the health of our balance sheet for the coming fiscal,” he told BusinessLine over phone. “Mortgage assets that were NPA over 180 days were sold. There were, however, no sale of NPAs in the SME category,” he added.
The board has declared a dividend of 40 per cent or ₹0.80 on each equity share of face value ₹2, while a preference dividend of 4.57 per cent (on pro-rata basis) was also declared for FY17.