Riding on the back of higher disbursals and improved collection, Magma Fincorp posted a net profit of ₹71 crore for the quarter ended March 31, 2018. The company had posted a net loss of ₹122 crore during the corresponding period last year.

Disbursals during the quarter under review grew by 51 per cent, primarily driven by loans to used assets, commercial vehicles, construction equipment, SME and home loans. Tractor loans grew by a modest 29 per cent.

For the year ended March 31, 2018, the company’s net profit grew to ₹230 crore compared to ₹13 crore in FY17.

The company, which has been focusing on product recomposition and asset quality management to improve its portfolio, had seen a degrowth in its assets under management (AUM) in the last three years.

Its AUM, which was at ₹19,000 crore in 2015-16, came down to ₹15,555 crore as of Q4 FY18. However, the AUM is up from ₹15,252 crore as on the quarter ended December 31, 2017. The company expects its AUM to grow, going forward.

The Kolkata-based NBFC also witnessed an improvement in the asset quality despite moving to the 90 days past due (DPD) regime from the earlier 120 dpd regime, said a press statement issued by Magma.

The gross non-performing assets (NPA) was at 7 per cent as on March 31, 2018, against 8.8 per cent in the same period last year.

Its net NPA also came down to 5.2 per cent (7.5 per cent) during the period under review.

The total capital risk adequacy ratio (CRAR) for FY18 was 20.7 per cent, against the Reserve Bank of India’s stipulated norm of 15 per cent for non-deposit taking asset finance companies.

The recent capital infusion of ₹500 crore through a qualified institutional placement has further strengthened its Tier 1 capital adequacy, which currently stands at around 25.4 per cent, the release said.

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