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Magma Fincorp reported a 5 per cent increase in consolidated net profit at ₹77 crore in the second quarter ended September 2018, against ₹73 crore in the year-ago period.
Net revenue of the Mumbai-based asset finance company, which has diverse lines of businesses, including financing mortgage, vehicles, SMEs, and general insurance, rose 12 per cent year-on-year to ₹365 crore. Expenses were up 20 per cent y-o-y at ₹171 crore.
The company reported a 34 per cent y-o-y increase in loan disbursements at ₹2,200 crore in the reporting quarter.
Assets under management, however, grew at a lower clip of 6 per cent to ₹16,623 crore as the company is running down some of its older vehicle loan portfolio, said Sanjay Chamria, Vice Chairman and Managing Director.
Net interest margin improved to 9 per cent in the reporting quarter against 8.3 per cent in the year-ago period.
Net non-performing assets to net advances ratio improved to 4.4 per cent against 6.8 per cent in the year-ago quarter.
On the prevailing liquidity scenario, Chamria said: “Currently, the market is passing through a phase of uncertainty, with heightened fear of the unknown. This is more of a confidence issue.”
Shares of the company ended at ₹107.35 apiece, up 0.75 per cent over the previous close on the BSE.
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