Non-banking finance firm Magma Fincorp on Monday reported widening of its consolidated web loss to Rs 647.72 crore for the final quarter of FY21 on accelerated write-offs and provisions.
The corporate had posted web lack of Rs 355.08 crore through the January-March interval of FY20. Nonetheless, there was a web revenue of Rs 13 crore within the previous quarter ended December 2020.
Whole revenue throughout This autumn FY21 additionally fell to Rs 587.14 crore as in opposition to Rs 617.62 crore earlier, Magma Fincrop stated in a regulatory submitting.
For the complete yr 2020-21, the non-banking lender reported a lack of Rs 558.96 crore as in opposition to a revenue of Rs 27.05 crore in 2019-20.
Earnings through the yr additionally fell to Rs 2,352.48 crore from Rs 2,562.88 crore. The curiosity revenue was down at Rs 2,165.68 crore as in opposition to Rs 2,324.34 crore.
“The corporate has adopted some of the conservative coverage within the trade for technical write-offs efficient Q4FY21. Such coverage change has resulted in one-time write-off affect of Rs 274 crore through the quarter,” it stated.
There was a further administration overlay provision of Rs 621 crore through the reported quarter for the second wave of COVID-19, it added.
The corporate holds cumulative provisions to the tune of Rs 1,192 crore as of March 2021 and the administration is assured of the adequacy of the identical to counter the pandemic-related affect on future profitability, the corporate stated.
“Had the corporate not moved to accelerated write-off coverage and never created extra provisions of Covid second wave, the revenue earlier than tax and revenue after tax for the yr ended March 31, 2021 would have been Rs 146 crore and Rs 111 crore respectively,” it stated additional.
On the asset high quality entrance, the gross non-performing belongings (NPAs) by finish of March 2021 fell to three.7 per cent of gross advances, as in opposition to 6.Four per cent earlier. The online NPAs had been 1.2 per cent, down from 4.2 per cent.
“The one-time provisions and write-offs have additionally resulted in an uptick in asset high quality of the remaining ebook, standing as top-of-the-line in trade with web stage three belongings (as of Mar-21) at 1.2 per cent and total ECL (anticipated credit score loss) provisions at 9.5 per cent of the full mortgage ebook,” it stated.
The belongings beneath administration (AUM) at finish of FY21 fell to Rs 14,225 crore from Rs 16,134 crore.
The Kolkata-based firm stated 97 per cent of its portfolio its both secured by collateral or has a sovereign assure cowl.
The corporate additionally stated the board of administrators has not really useful any dividend for FY21 in an effort to preserve capital, given the difficult scenario brought on by the continuing pandemic and loss through the yr.
Inventory of Magma Fincorp closed 4.97 per cent up at Rs 136.25 apiece on BSE.
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