Calcutta, Jan. 31: Calcutta- based asset finance company Magma Fincorp today reported a drop in net profit for the third quarter ended December at Rs 35.2 crore against Rs 36.4 crore a year ago on account of a rise in finance cost.
Total income from operations grew 21.1 per cent to Rs 513.5 crore, while net interest spreads improved 95 basis points to 5.70 per cent at the end of the quarter.
“In the backdrop of a difficult environment and inconsistent cash flows in our customers’ hands, we stay focused on maintaining our profitability and portfolio quality. We have improved our net spreads and operating efficiency and are seeing a turnaround in collection efficiency,” vice-chairman Sanjay Chamria said.
Texmaco Rail and Engineering has posted a net profit of Rs 3.17 crore for the third quarter ended December against Rs 34.93 crore a year ago.
Net income from operations stood at Rs 87.72 crore against Rs 242.51 crore in the year-ago period.
The poor performance has been attributed to the delay in releasing of wagon orders by Indian Railways.
“The orders were last released by the railways in 2011-12 in January. No orders have been released for 2012-13. The railways have finally come out with a tender for 11,720 wagons for 2013-14 in the end of November 2013, which is likely to be finalised in February 2014,” the company said in a statement.