Magma Fincorp has posted a 57.5 per cent drop in net profit to Rs 13.89 crore in the third quarter of current financial year on the back of forex loss along with change in accounting policy by the non-banking financial company.
Net profit stood at Rs 32.68 crore in the same period last year. However, total income saw a 23.5 per cent rise to Rs 278.22 crore during the quarter ended December 31, the Kolkata-based retail finance NBFC said.
"Net profit has dipped as there was a loss of Rs 5 crore as a consequence of a mark-to-market (MTM) on forex exposure. Also, the change in accounting policy to recognize the gain through securitisation over the tenure of a loan against upfront recognition earlier impacted the profit," Magma Chief Financial Officer V Lakshmi Narasimhan said.
The impact of change in accounting policy would be felt till the second quarter of the next fiscal, he said.
In the meantime, the NBFC has witnessed a healthy growth in advances in the quarter under review.
"Total disbursements have grown by around 50 per cent to Rs 1,915 crore in the third quarter despite a sluggish economic environment," Narasimhan said, adding the company is expected to end FY12 with a 50 per cent growth in advances.
Similarly, total asset under management of the company stood at Rs 11,856 crore by the end of third quarter.
Referring to overall spread, he said the margins were at 4.2 per cent in the October-December period and 4.3 per cent for the first nine months of the fiscal.
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