Magma Fincorp net jumps 44% on lower provisions

Despite the troubles plaguing the NBFC sector, non-banking lender Magma Fincorp Thursday reported a 44 percent growth in net income at Rs 77 crore, aided primarily by reducing net credit losses. Overall revenue grew to Rs 347 crore from Rs 303 crore, while net credit loss came down to Rs 53 crore from Rs 94 crore on a reduction in gross NPAs to 6.3 percent.

Assets under management went up to Rs 16,507 crore from Rs 15,605 crore, while there were some segments like agriculture and automobiles which showed a slip. Overall net interest margin widened to 8.4 percent from 7.8 percent.

In a statement, the company said it has been able to post growth in profit on higher disbursements, lower NPAs and stable net interest margins which could cushion the "sharp increase" in cost of funds. "We are off the peak in terms of cost of funds and things are gradually getting back to normal," vice chairman and managing director Sanjay Chamria said.

The company's stock ended flat with a negative bias at Rs 98.90 on the BSE, while the benchmark rallied close to 2 percent..