Magma Fincorp Ltd posted a 94 per cent rise in net profit to Rs 33 crore for the quarter ended June 30, 2012, as compared with Rs 17 crore in the same period last year.
Income from operations grew by 53 per cent to Rs 325 crore. And disbursements grew by 45 per cent to Rs 2,057 crore.
Magma Housing Finance Ltd, the housing finance subsidiary of Magma Fincorp Ltd, is expected to commence operations by the end of December this year.
According to Mr V. Lakshmi Narasimhan, Chief Financial Officer, Magma, the company has already filed an application with the National Housing Bank.
“We have pumped in Rs 10 crore into this subsidiary. Once we get our licence, we will put in place a business plan. Further infusion of funds will depend on our business plan,” he told Business Line on the sidelines of the company’s 32{+n}{+d} annual general meeting here on Thursday.
The company would cater to the affordable housing segment with a ticket size of less than Rs 25 lakh. “We plan to initially cater to markets such as Rajasthan, Karnataka and NCR which have a number of such affordable housing projects. We will then roll it out to other parts of the country in a phased manner,” he said.
Magma’s general insurance venture — Magma HDI General Insurance Company Ltd — is also expected to commence operations by the end of third quarter of this fiscal.
Magma currently provides finance for cars, commercial vehicles, construction equipment, used commercial vehicles, tractors and small and medium enterprises.
Magma’s shares rose by 5.71 per cent to close at Rs 66.60 on the BSE on Thursday.