Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Stock Report

| More

Magma Fincorp FY20 AUM at Rs 16,134 Cr, PBT before Covid Provision at Rs 199 Cr

Posted On: 2020-06-18 18:09:29

Mumbai-based asset finance company, Magma Fincorp Limited today announced Annual results for FY20. The economic downturn coupled with the COVID-19 impact led to FY20 disbursements at Rs 6,428 crore, a decrease of 27% YoY. Assets Under Management (AUM) were at Rs 16,134 crore, down 5% YoY. The Profit before Tax before COVID provision stood at Rs 199 crore in a very challenging year; After one-time provision of Rs 117 crore towards COVID-19, the PBT stood at Rs 83 crore. Magma Exited March 2020 with a comfortable liquidity of over Rs 1,500 crore.

The Company is adequately capitalized for growth, has a strong liquidity position, a well-diversified retail portfolio with excellent geographic distribution and 97% of the receivables are either secured by collateral or have a sovereign guarantee cover.

The company reached out to over 75% of its customers during the lockdown to firstly, inquire about them and families health and further to understand the impact of the lockdown on their cashflow situation.

Early investment in digital initiatives through project 'Navodaya' in 2019 helped the company proactively manage the lockdown situation and ensured a seamless transition to the Business Continuity Plan. Under project Navodaya, the company is digitizing its entire loan origination cycle which will help increase productivity further. As of now, 75% of the company's collection are conducted digitally.

Customers comprising 73% of the AUM opted for the moratorium as of May-end. However, with comfortable liquidity, the company decided not to avail of the moratorium on any of its borrowings. Even under these circumstances, the Company exited the moratorium phase 1 with liquidity of over Rs 1,600 Crores as on 31 May 2020.

The situation is gradually returning to normal with 305 of our 327 branches now fully operational, and nearly 95% of employees are working in nearly a 'Business as Usual' environment.

Vehicle Finance Business: The portfolio is being strategically reshaped with increasing the contribution of focus products and customer segments. The contribution of used assets in disbursements in 2HFY20 was roughly 70%, and the disbursement of used assets grew by 27% CAGR over the last three years. Magma Housing Finance: The 100% subsidiary with pan India presence with differentiated, direct relationship based lending model for affordable housing had a strong FY20. Loan disbursements grew by 21% YoY to Rs 1,315 Cr and AUM growing by 35% YoY to Rs 3,283 cr. PAT in FY20 grew by 25.4% YoY to Rs 42.6 crs. Magma Housing Finance has bucked the industry trend and continued its path of asset quality improvement. In FY20, Gross NPA & Net NPA stood at 1.6% and 0.97% with healthy PCR of 40% on an entirely retail loan book.

Magma' SME Finance Business: Disbursals stood at Rs 1,018 cr for FY20, as we took a conscious decision to curtail disbursals, focusing only on high quality assets given the stress being faced by most MSMEs. The company has de-risked 76% of its unsecured loans portfolio through CGTSME cover.

Magma HDI General Insurance: Registered a growth of 26.1% YoY in Gross Direct Premium, continuing its focus on building a strong distribution franchise with the retail business constituting 83.2% of the total Gross Written Premium. The company empaneled with 6 new OEMs during the year and now serves an impressive panel of OEM customers. In 2020 the company was awarded with the title 'Rising Star Company' at the India Insurance Awards 2020.

Commenting on Magma Fincorp's performance, Mr Sanjay Chamria, Vice Chairman and Managing Director, Magma Fincorp Limited said, "We are in the midst of uncertain times and Magma's motto in the current circumstance is to survive, revive and thrive. Magma's strategy to focus on used assets, affordable housing and SME assets has provided a cushion in these trying times. In FY21, Magma would focus on collections, improvement in asset quality and lowering operational expenses. We are adequately capitalized and have enough liquidity for growth."

Shares of MAGMA FINCORP LTD. was last trading in BSE at Rs.22.6 as compared to the previous close of Rs. 21.53. The total number of shares traded during the day was 3464207 in over 3564 trades.

The stock hit an intraday high of Rs. 22.6 and intraday low of 20.5. The net turnover during the day was Rs. 76964789.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Sonata Launches 'CSK 2020 Edition' for Chennai Superkings Fans

Universal Cables Ltd updates on capacity expansion

Innovators Facade Systems Limited receives work order of Rs. 26 crores

MRPL shareholders approve proposal to raise funds of Rs. 5000 crore

ITC Ltd increases stake in Delectable Technologies Pvt Ltd

PNB associate bank, JSC Tengri Bank's License revoked

ITC Ltd.'s Sunfeast YiPPee!'s 10th Anniversary celebrations make a GUINNESS WORLD RECORDS® achievement

RITES Ltd board approves buy back through tender offer at Rs. 265

Route Mobile Limited shares to list on Monday - Sep 21, 2020

Mysore Petro Chemicals Limited to write-off GBP 770,000

Somany Ceramics adds a dash of style at T2, Mumbai Airport.

United Spirits Ltd announces resignation of CFO

Lords Chloro Alkali Ltd posts loss of Rs. 1.08 crore in Q1FY21

Zydus Cadila receives final approval from USFDA for Potassium Chloride Extended-Release Tablets

ICRA upgrades rating of Escorts Ltd

Bhatia Mobile to Migrate to main board of BSE

Avantel Ltd receives order of Rs. 15.97 crore from Bharat Electronics Ltd

Magna Electro Castings Ltd board approves buy back at Rs. 175

TATA Tea Chakra Gold Becomes Official Tea Partner for Chennai Super Kings in IPL 2020

Tiger Logistics India Limited provides future Business Outlook

Dr. Reddy's Laboratories announces settlement of U.S. Revlimid® Capsules patent litigation with Celgene

TVS Motor Company expands and strengthens its presence in Colombia

ICICI Securities successfully closes ~INR 6,000 mm IPO of Route Mobile Limited

EIH Limited approves rights issue, fixes Sep 23, 2020 as record date

Hindalco and Hindustan Copper sign MoU for supply of copper concentrate

Kilpest India Limited to merge subsidiary with itself, change name as 3B BlackBio Dx Ltd

Sterling and Wilson Solar Limited Signs order of 106.71 MW worth USD 62.6 mn in Chile

South Korea donates One lakh masks to TVS Motor Company for free distribution to aid India's fight against COVID-19

TCS Recognized as a Leader in Cloud-Native Application Development Services by Everest Group

Power Grid Corporation of India Ltd receives approval for setting up of InvIT

Mahindra Happinest® sells 100+ homes online within a week at 'Happinest Palghar'

Ramco Systems signs agreement with Arla Foods

IRCON International Ltd secures order worth Rs. 1900 crore

Phoenix Group Partners with TCS to Introduce Enhanced Analytics for Workplace Pension Clients

L&T Construction secures order from Northern Coalfields Ltd

Dr. Reddy's announces the launch of Over-the-Counter Olopatadine Hydrochloride Ophthalmic Solution USP, 0.2% and 0.1%, the store-brand equivalent of Pataday®, the Eye Allergy Drop in the U.S. Market

Ashok Leyland receives an order for 1400 ICVs from Procure Box

PTC India Financial Services Ltd receives Rs. 115.57 crore IT refund

Thomas Cook India & SOTC partner with India's favourite storyteller Amar Chitra Katha

Shankar Lal Rampal Dye-Chem Ltd Board to consider Bonus Issue of Equity Shares

Dhanuka Agritech Ltd fixes Sep 28, 2020 as record date for buy-back

Sterling and Wilson Solar Limited declares financial results for quarter ending 30th June 2020

JMC secures new orders of Rs. 1,342 Crores

ABM Knowledgeware Ltd bags Rs 127.44 Crores order for SAP Technology Modernization

Titan Company with SBI launches India's first contactless payment watches

Bajaj Consumer Care Joins hand with IndiaMART, to enhance their digital presence in B2B market segment

ICICI Securities successfully closes ~INR 7,020 mm IPO of Happiest Minds Technologies Limited

The Bank of Bahrain and Kuwait goes live with iGTB's Contextual Digital Transaction Banking platform to support growth

HCL and Google Cloud Expand Partnership to Deliver Accelerated Business Intelligence Platform

CARE Ratings reaffirms 'CARE A-' rating with stable outlook for Jindal Stainless (Hisar) Limited

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019