Magma targets to become a Rs 2500 crore finance company by 2006-07

Kolkata, Apr 28 (UNI) Magma Leasing Limited (MLL), one of the fastest growing non-banking financial institutions which has recently diversified into Insurance and personal credit business, is looking for a Rs 2500 crore turnover with 35 per cent annual growth.

Announcing the last year's financial results after a prolonged Board meeting here today, MLL Managing Director Sanjay Chamria said despite experiencing a downtrend in the sales of commercial vehicles in the country, they had enjoyed a healthy 21 per cent growth in sales to Rs 1815 crore last year and about 31 per cent jump in net profitabilty to Rs 23.2 crores during the same period from Rs 20.3 crores the previous year.

He said in order to increase the business portfolio of Magma they had recently made forays into selling of non-life Insurance products of the National Insurance, Oriental Insurance, Reliance Insurance and ICICI Lombard after joining hands with each of them.

"We have also entered into the personal loan segment during the last quarter of 2005-06 and did a brisk business of about Rs 43 crores till March 31 this year", Mr Chamria said adding that during the current fiscal they had targetted to earn more than Rs 300 crore each from both the Insurance and personal loan businesses.

Referring to Magma's present core business activities including financing of both new and old vehicles besides that of sophisiticated construction equipment, Mr Chamria claimed that each of these segment had recorded more than 30 per cent growth last year. The same trend would be maintained during the current year too, the MLL MD said.

About his expansion plans, Mr Chamria said following healthy growth in businees, they had decided to increase the number of Magma branches across the country by 15 this year to take their total number to 73. Since Magma had only limited exposure in Western and Southern India so far majority of these 15 branches would be set up in those two regions only.

He said last year of the company's total business(of Rs 1815 crores), the maximum 45 per cent came from North India, followed by 31 per cent from the East and 13 per cent from Central and eleven per cent from Southern India.

Keeping in view the huge growth potential in Maharashtra and Gujarat we would give special stress on these two states, Mr Chamria said.

UNI ABA TJP RN 1802