Magma Fincorp posts Rs.26.46 crore Q4 net profit

Kolkata, May 31 (IANS) Asset finance company Magma Fincorp posted net profit of Rs.26.46 crore for the fourth quarter of 2009-10 against Rs.7.43 crore in the corresponding period a year ago.

For the financial year ended March 31, 2010, the net profit stood at Rs.71.32 crore, compared to Rs.39.8 crore a year ago.

‘Increase in share of high-yield products, improvement is net interest margin helped the company achieve this profit level,’ Sanjay Chamria, vice chairman and managing director, told reporters here Monday.

Used commercial vehicles, tractors and small and medium entreprises (SME) loans comprise the high-yield products whose share went up to 13 percent in 2009-10 from 9 percent a year ago.

Magma has a strong presence in semi-urban and rural India. It offers finance for new and used commercial vehicles, passenger cars and utility vehicles, construction equipment and tractors.

The company plans to expand footprints to 10-12 locations this year and focus on tractors and used commercial vehicles financing.

Chamria said the company may raise Rs.125 crore through preference shares and unsecured subordinated debt this fiscal.