NEW DELHI: Magma Fincorp on Wednesday said the number of customers opting for moratorium 2.0 has reduced to 46 per cent in June while maintaining that the NBFC has not opted for any moratorium from its lenders. Magma customers comprising 73 per cent of the AUM had opted for the moratorium at the end of May.
In an update to stock exchanges, the NBFC said it has an adequate liquidity buffer of over Rs 1,750 crore as on June 30 and is comfortably placed in terms of liquidity to service its liability repayments and continue normal disbursements.
Shares of Magma Fincorp hit a 5 per cent upper circuit limit earlier in the day at Rs 24.60. The company made the business update to exchanges at 10.41 am.
Magma said it has resumed operations in roughly 94 per cent of its branches. Disbursements, it said, gradually resumed in June, after being limited in April-May. The company expects business to return to normalcy nearer to the onset of the festival season in October.
The NBFC added that the pandemic has led to the disruption in the company’s business both in terms of disbursals as well as collections since the last week of March.
“We expect the business to return to normalcy nearer to the onset of the festival season in October 2020. The company has taken a calibrated approach towards extending the second moratorium to its customer, after assessing customers’ cash flows. The number of customers opting for moratorium 2.0 has significantly reduced to 46 per cent in June 2020,” it said.
Magma expects the demand for new vehicles to be significantly lower year on year going ahead but believes that the used assets segment — .where the company had shifted its focus over the last few years– will stay relatively less impacted.
Source: ET Markets