Non-banking financial company Magma Fincorp on Thursday reported a net loss of Rs 35.51 crore for the March quarter on fall in core income from interest and increased provisions due to the coronavirus pandemic. It had posted a net profit of Rs 85.30 crore in the corresponding January-March period of the previous fiscal, it said in a regulatory filing.
Sequentially, there was a net profit of Rs 22.39 crore during the December quarter of FY20.
Income during the March quarter of 2019-20 fell to Rs 617.62 crore from Rs 631.12 crore in the same period of the preceding fiscal.
For the full fiscal 2019-20, there was a net profit of Rs 27.05 crore, much lower than the profit of Rs 304 crore in FY19.
Income for the year, however, was up at Rs 2,513.43 crore from Rs 2,454.53 crore earlier.
Magma said the impact of the lockdown on its business remains uncertain.
"The company's capital adequacy and liquidity position remains strong and shall continue to be an area of focus," it said.
The company has made additional provision during the quarter and year ended March, aggregating to Rs 116.60 crore towards potential impact of the COVID-19 pandemic. Consequently, profit before tax (PBT) reduced by Rs 116.60 crore and PAT by Rs 87.26 crore for the quarter and year ended March 31, 2020, it said.
Pursuant to inadequate profits due to additional provisions made for COVID- 19, the existing managerial remuneration paid to its vice chairman and managing director during the year is in excess of the limits laid down under the Companies Act, 2013 by Rs 42.87 lakh.
"The company is in the process of obtaining approval from its shareholders vide special resolution at the forthcoming annual general meeting for such excess remuneration paid," it added.
Magma Fincorp stock closed 4.97 per cent higher at Rs 22.60 apiece on the BSE.
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