Mumbai-based asset finance company, Magma Fincorp Limited today announced that it remains well capitalized and has capital adequacy ratio of 24.4%. The company is a retail financer and does not have any large real estate or corporate exposure. The updates given have been in response to queries from few stake holders.
Update on Liquidity Position:
- Magma has received excellent support from the banking system and raised liabilities amounting to Rs 2136 Crs entirely from long-term sources during the Jul-Sep 2019 quarter. This has further strengthened the Asset Liability Matching of the company.
- The Company has adequate liquidity cushion of over Rs 1800 Crores as on 30.09.2019, a liquidity cushion of 3 times to meet all debt repayments amounting to less than Rs. 650 Crores due till March 2020.
- We have a strong retail and granular portfolio and therefore a strong pipeline of deals with PSU banks under the Partial Credit Guarantee scheme (PCG) announced by the Government of India, Securitization and Term Loans.
- With excellent liquidity and a strong pipeline of new funding, we have witnessed the cost of new funds softening, and expect the cost of borrowings to come down in Q3FY20 and onwards.
Loan Book Composition:
Our loan book composition is granular. Some key parameters on the loan book composition are as follows:
Composition of loan book as on 31 August 2019 -
- ABF (Vehicle Finance) :67%
- Housing Finance :21%
- SME :12%
Other Key Highlights -
Number of accounts: 394,148
Average Ticket Size (of disbursements): 5.66 Lakhs
Asset Under Management: 16,787 Crs
Shares of MAGMA FINCORP LTD. was last trading in BSE at Rs.48.85 as compared to the previous close of Rs. 49.45. The total number of shares traded during the day was 12230 in over 227 trades.
The stock hit an intraday high of Rs. 48.85 and intraday low of 47. The net turnover during the day was Rs. 583948.
Note: The above numbers are basis management estimates and unaudited