Magma Leasing Eyes 50% Increase In Disbursement

Kolkata, July 29: | Updated: Jul 30 2003, 05:30am hrs
Magma Leasing Ltd on Tuesday announced its ambitious strategy to increase its total disbursements by 50 per cent during the current financial year. In 2002-03 we disbursed Rs 509 crore and our target for the current fiscal is Rs 750 crore, company managing director Sanjay Chamria told reporters here on Tuesday.

He said that around 40 per cent of the targeted disbursement of Rs 750 crore will come from commercial vehicles financing sector: The passenger car finance segment will contribute to around 35 per cent and the remaining 25 per cent will go to construction equipment financing.

He said that earlier Magma Leasing was also in the financing of consumer durables and two-wheelers, However, we have decided to do away with these two sectors from our financing portfolio with effect from March 2003. He said that higher operating overhead and minimum write-off sum recovery were the main reasons behind the management decision to exit from the financing of two-wheelers and consumer durables.

He said that out of the disbursement target of Rs 750 crore during the current fiscal, Rs 159 crore is slated for Delhi and Haryana, Rs 125 crore for West Bengal, Rs 105 crore for Punjab, Rs 95 crore for Uttar Pradesh, Rs 83 crore for Orissa and the rest for Rajasthan, Andhra Pradesh and Jhar-khand. In simple terms, north India will contribute 52 per cent of our targeted disbursement for the fiscal and the remaining 48 per cent will be contributed by eastern India and Andhra Pradesh, he said.

During the quarter to June 30, 2003, Magma posted a total income of Rs 20.03 crore. The profit after tax, during the quarter under review, stood at Rs 7.28 crore. The earning per share improved to Rs 5.96 from Rs 1.29.