Magma Fincorp Recorded a Profit of Rs. 74 Crore in Q3
Updated On Nov 25, 2020
Magma Fincorp has shown a rise of 65% consolidated net profit with Rs. 73.98 Crore in the third-quarter (Q3) of 2018-19 in spite of the sharp hike in the cost of funds against Rs. 44.83 Crore net in the corresponding quarter last fiscal. The total income of the company from operations during the third-quarter (Q3) of 2018-19 was up at Rs. 633.92 Crore in comparison to Rs. 578.98 Crore during the same time in the previous year.
The remarkable growth in the profit is observed due to the lower non-performing assets (NPAs), higher disbursements, and stable net interest margins (NIMs) which reached around 8.4%, as per the company release. Magma Fincorp has experienced a substantial improvement in the quality of its portfolio with a reduction in gross NPAs and taking them to 6.3% in the last quarter in comparison to 9.5% in the third quarter. In addition to these, the company stated that assets under management have experienced an increase of 6% year-on-year (YoY) to Rs. 16,507 Crore by December 31, 2018.
Meanwhile, Magma Housing Finance clocked a 201% YoY growth with the disbursement of home loan, whereas direct originations got stabilized at 80% of all the disbursement in Q3FY19 in comparison to 47% during the same quarter last year. SME finance recorded a disbursement growth of 23% YoY in Q3FY19, while Magma HDI General Insurance experienced 115% growth in gross written premium in Q3FY19.