The Hindu Business Line : Magma Leasing PAT more than doubles in '03-04 — Ties up funds for new business of Rs 1.352 cr

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Magma Leasing PAT more than doubles in '03-04 — Ties up funds for new business of Rs 1.352 cr

Our Bureau

Kolkata May 7

MAGMA Leasing Ltd has recorded a 130 per cent increase in its profit after tax at Rs 17.62 crore for the year ended March 31, 2004, up from the Rs 7.65 crore achieved in 2002-03.

The company, involved in financing of cars & multi-utility vehicles and construction equipment, ended 2003-04 with a disbursal figure of Rs 867 crore against the Rs 509 crore achieved during 2003-03, recording a growth of 70.24 per cent.

Briefing newspersons here on Thursday on the audited financial results of the company, Mr Sanjay Chamria, Managing Director, attributed the bottomline growth to implementation of the new business model adopted from last year, and the change in product mix and exit from loss-making businesses like financing of consumer durables.

He said for 2004-05 Magma has planned a 56 per cent growth, on a conservative basis, which will result in yearly disbursals of Rs 1,352 crore. He was confident of over-reaching the target, as Magma has already disbursed Rs 91 crore in April 2004.

Mr Chamria informed that Magma has already tied up resources for funding the projected 2004-05 business of Rs 1,352 crore with as many as 25 banks and institutions, "so as to have full concentration on business performance from the beginning of the year." He also ruled out any fresh capital raising exercise as of now, as the position was comfortable at the moment.

The company's PBT for the period under review has jumped to Rs 20 crore from the Rs 6.73 crore for the same period of last fiscal.

Income from operations has registered a growth of 42.25 per cent at Rs 74.03 crore (Rs 52.04 crore), while fee-based income has increased to Rs 6.56 crore (Rs 5.71 crore). Total income for the quarter ended March 31, 2004 has increased to Rs 21.95 crore (Rs 15.72 crore).

Mr Chamria said Magma's gross and net NPA levels stood at 0.26 per cent and 0.07 per cent respectively as on March 31, 2004, against the 1.93 per cent and 1.33 per cent for last year, significantly lower than the industry average of over 3 per cent.

He put the capital adequacy ratio as on March 31, 2004 at 23.02 per cent (against the RBI stipulated 12 per cent).

He said the company was totally free of any franchisee arrangement now, and deals with customers independently, especially in the growing semi-urban and rural markets, and this was fully reflected in the bottomline growth. "We got some 20,000 new customers during 2003-04." He said Magma was aiming at a higher market share of 6 per cent for passenger cars.

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