The Hindu Business Line : Magma Srachi Fin ties up with GM

Kolkata, May 19 Magma Srachi Finance Ltd has recently tied up with General Motors as a preferred vehicle financier. This follows similar arrangement with Hyundai Motor India last month, Mr Sanjay Chamria, Vice-Chairman and Managing Director, told Business Line.

With this, Magma Srachi now has pan-India financing arrangements with four vehicle manufacturers including Maruti and Mahindra & Mahindra. It also has financing arrangement with Tata Motors for regional sales.

Magma Srachi Finance, a 74:26 tractor financing joint venture with International Tractors Ltd, has now floated a consumer finance company as a 100 per cent subsidiary.

Market pointers

He said this financial year, commercial vehicle financing may slow down a bit but that may be compensated by an increase in business for construction equipment. In 2007-08, commercial vehicle financing posted a 20 per cent growth and contributed about 39 per cent to the total disbursement of Rs 3,512.8 crore, while the construction equipment business represented about 30 per cent.

The total asset base has gone up 29 per cent to Rs 7,412.3 crore and the net income from operations was up 69 per cent to Rs 471.43 crore. The PAT was up 61 per cent to Rs 50.54 crore and the net NPA has been maintained at zero level. The board on Monday proposed a dividend of 20 per cent.

Meanwhile, Cambridge Place Investment Management, a London-based hedge fund, has increased their equity holding in Magma Srachi to 14.20 per cent through conversion of cumulative optionally convertible redeemable preference shares at a premium of Rs 190 in February.

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