Magma Fincorp slumps over 17%

For the NBFC, Magma Fincorp, it was thanks to the 60% (YoY) surge in other income or non-interest income which helped it end Q2FY17 with 4% rise in consolidated net profit at Rs.51 crore. Its net income from operations was actually down 2% at Rs.310 crore. Its Loan assets showed a 6% drop at Rs.17,600 crore.

The company continued to focus on profitable growth through increased business in agriculture (tractors), used assets, mortgage and burgeoning SME segments. These four segments now contribute 67% of total disbursals and 60% of total loan book.

In terms of asset quality, its Gross NPA has risen from 8.7% to 9.2% (QoQ) while Net NPA also showed a rise- up from 6.9% to 7.2%. Provisions and write-offs rose 7% (YoY) and up 8% (QoQ) at Rs.95 crore.

The market is not too enthused with the numbers and the stock price lost over 17% intra day to Rs.95.65. It has recovered from there and is back to being in the three-digit at Rs.101 levels, nevertheless, down 12%.